Hiring a Tax Return Preparer: How Do You Do It Right?
There’s so much challenge and responsibility into preparing and filing your income tax return. If you are not able to do it, then it would be wise to just employ someone who can do it in your stead. But then if you have to pay someone to perform this very critical work, you need to be the most careful in choosing a person. Whatever is on your tax return, the IRS will hold you liable and responsible for all of them even if you are the one who’s preparing it. So many companies today do not choose a tax return preparer carelessly. The persons they hire are trustworthy, well-experienced and professional. Please read on to the next few parts of this article in order to know how you can select your tax return preparer properly.
Evaluate the Person’s Qualifications
The new regulations demand that all individuals preparing tax returns for companies must have a PTIN or Preparer Tax Identification Number. Aside from ensuring the person you hire comes with a PTIN, you also have to inquire if he is affiliated with a recognized professional accounting or tax preparation organization. He must also be attending continuing education classes in order for you to make sure he is updated of the new regulations of the IRS. The IRS is even providing a new test requirement for preparers who are not CPAs, attorneys and enrolled agents. The passing of said test will render one a Registered Tax Return Preparer.
Evaluate the Person’s History
Before you decide to hire a specific individual to be your income tax return preparer, it is important that you take time to check his history. Check if the person you are eyeing at comes with a questionable history with the BBB or Better Business Bureau. You may also check the licensure status of the preparer and if he has had disciplinary actions from the IRS office of enrollment, state board of accountancy and state bar associations.
Know About their Service Fees
Tax preparers do not have the same method of charging their clients. However, it is often not recommended to select a preparer who bases his fees on your refund. Do not even choose someone who claims that he has gotten larger refunds than other tax preparers. Also, you have to make sure that the refund of taxes are sent to your company’s bank account number.
Source: Tax