Your Guide to Selecting a Tax Return Preparer
Preparation and filing an income tax return is both a challenging and demanding job. If you know you cannot do it, then it would be advisable to just hire someone who can. But if you have to pay someone else to do the critical task for your company, you have to be very careful in making a choice. Remember that the Internal Revenue Service will hold you liable for the mistakes of your tax return even if you are not the one preparing it. Most companies do not choose just any tax prepare. They often select a person who is professional, well-experienced and honest. Please read on to the next few parts of this article in order to know how you can select your tax return preparer properly.
Assess the Qualifications of the Preparer
The Internal Revenue Service has a new regulation which necessitates all individuals who are paid to prepare income tax returns for companies to acquire a Preparer Tax Identification Number or PTIN. It is also important to know that aside from having a PTIN, your chosen person is affiliated with a legitimate and professional organization in your area or state. It also matters if your preparer is pursuing continuing education to give you assurance that he is aware of every new regulation on tax preparation the IRS is giving. The IRS is even providing a new test requirement for preparers who are not CPAs, attorneys and enrolled agents. Individuals who are able to pass this test will become a Registered Tax Return Preparer.
Check the History of the Preparer
Checking your preparer’s history prove to be a very essential task in selecting a person who will represent your company with the IRS and preparer your text under your name. You need to verify if the tax preparer is having some questionable standing with the Better Business Bureau. You may also check with the state boards of accounting for certified public accountants, the IRS Office of Enrollment for enrolled agents and state bar associations for lawyers if there had been any disciplinary action sanctioned on the preparer and what is status may be.
Know About their Service Fees
There are different ways by which tax preparers charge their clients. But to be safe, you must not select one who charges fees on the basis of your refund percentage. In addition to that, do not choose a preparer who claims that he has provided larger refunds to your companies than other preparers can. Even more, it is essential to make sure that your selected tax return preparing is professional and is sending refunds to companies through the bank instead of in person.