Tax preparation entails filing of tax returns often carried out by a taxpayer or aided by tax preparers. Some people rely on tax preparation software or online services to file tax returns.
Over a third of taxpayers rely on tax advisors to file tax returns. Surprisingly, a high percentage of taxpayers hardly know anything about them or even how to locate the most preferred tax preparer.
Studies show that approximately over 80% of taxpayers don’t know the right credentials for tax advisors. This is shocking because, working with a tax advisor or preparer means sharing with them your crucial information about your income, bank accounts and much more.
If you need help to find the certified tax preparer who is qualified to represent you in a tax audit, read the following guidelines.
Request for the Tax Identification Number
The IRS necessitates that tax preparers indicate their PIN on your returns. Only certified tax preparers or advisors have a PTIN, which allow them to provide help with preparing federal tax returns.
Go for CPAs
While finding a tax advisor with a PTIN is comparatively easy, you may need to push the envelope even further. Go for a Certified Public Accountant, who has cleared an IRS’ Annual Filing Season program. CPAs are certified professionals who will help you with tax preparation in line with the Annual Filing Season Program requirement.
Compare and contrast Fees
It is important to be informed about the exact charges of tax advisors for preparing tax returns. Familiarize yourself with the National Society of Accountants to understand the expected fees for filing tax returns. Some tax preparers may charge you on per hour basis; some may base the costs on your refund size.
Drop Tax Preparers Who Don’t E-File
According to the IRS, tax preparers, who file returns for more than ten clients to submit them through the IRS’ e-file system. If your tax advisor doesn't do electronic tax returns, this could be a sign that they don't do much tax returning, as you expected.
Ensure your Tax Preparer Signs on Dotted Line
Tax preparers are required to sign on the tax returns of their clients, which includes providing their PTINs. This is a legal requirement, which requires you to avoid signing on a blank tax return. Any blank tax return can give your tax preparer a chance to submit anything on the tax return, such as their bank accounts in a bid to take away your refund.
Can your Tax Preparer Represent you?
Apart from just preparing and filing tax returns, your tax preparer must represent you in an IRS tax audit. Any ordinary tax preparer with only a PTIN can’t represent you in any way, even if they do a great job in filing tax returns for you. Tax preparers that have completed the Annual Filing Season Program can stand in for you in some degree of settings.
Most of all, the best tax preparer must work with you all through the years. They must be your beck and call anytime you require tax advice, planning, preparation, filing, and audits.
Do you need any assistance in filing tax returns? Speak with the professionals. Know who you are working with and only pick a tax preparer or advisor that is trustworthy, reliable, and certified. Remember, your buck stops with your tax preparer.
