For many Americans, the income tax season is perhaps one of the most stressful times. Moreover, combined with the ever changing tax rules, regulations, and guidelines; and heightened scrutiny by the Internal Revenue Service on the income tax industry, tax season has evolved to be one of the most dreaded times of the year. However, this already stressful time does not have to be as intimidating as most taxpayers believe it to be. Having the confidence and security in knowing that you have a qualified and competent tax preparer to assist you can definitely alleviate the stress that accompanies the tax preparation process. Here are a few tips to assist you in choosing a qualified tax preparer.
- Ensure that your paid preparer has been assigned a PTIN and has obtained or renewed the assigned PTIN through the IRS new, online system.
- A paid preparer must sign the return as required by law.
- Avoid preparers who claim they can obtain larger refunds than other preparers. If the returns are prepared correctly, every preparer should derive substantially similar numbers.
- Beware of a preparer who guarantees results or who bases fees on a percentage of the amount of the refund.
- A reputable preparer will request to see your receipts and/or documentation and will ask you multiple questions to determine your qualifications for expenses, deductions and other items.
- Choose a preparer you will be able to contact and one who will be responsive to your needs.
- Investigate whether the preparer has any questionable history with the Better Business Bureau, the state's board of accountancy for CPAs, the state's bar association for attorneys or the IRS Office of Professional Responsibility (OPR) for enrolled agents or the oversight agency in states that license or register tax preparers.
- Determine if the preparer's credentials meet your needs or if your state mandates licensing or registration requirements for paid preparers.
- Find out if the preparer is affiliated with a professional organization that provides or requires it members to pursue continuing education and holds them accountable to code of ethics.
- Ensure that the preparer is familiar is familiar with your line of profession and/or work and is knowledgeable with the intricacies of your occupational and/or industry tax guidelines.
- A paid preparer is required by law to sign the return and fill in the preparer areas of the form. The preparer should also include their appropriate identifying number on the return.
- Review the completed return to ensure that all information, your name, address and Social Security number(s) are correct.
- Review and ensure you understand the entries and are comfortable with the accuracy of the return before you sign.
- Never sign a black return, and never sign in pencil.
- If you have provided specific authorization in a power of attorney filed with the IRS, you may have copies of notices or refund checks mailed to your preparer or representative; but only you can sign and cash your refund check.
- A Third Party Authorization Check Box on IRS Form 1040 allows you to designate your paid preparer to speak with the IRS concerning how your return was prepared, payment and refund issues and mathematical errors.
Tax evasion is both risky and a crime punishable by up to five years imprisonment and a $250,000 fine. Remember, no matter who prepares a return, the taxpayer is legally responsible for all of the information on the tax return.
For the 2011 filing season, the Internal Revenue Service has launched a new oversight program to help regulate the tax preparation industry. One of the goals of the program is to ensure that taxpayers receive service from qualified professionals, while strengthening the integrity of the tax system overall.
Please feel free to contact us at info@mardenborough.comfor more information regarding our professional income tax preparation services and how we may be of service to you.