The IRS has issued a great list of issues to consider when selecting a new tax preparer. Check out the Tax Tip below before you begin your search.
Issue
Number: IRS Tax Tip 2019-06
Ten things for
taxpayers to think about when choosing a tax preparer
It’s the time of the year when many taxpayers choose a tax preparer to help
file a tax return. These taxpayers should choose their tax return preparer
wisely. This is because taxpayers are responsible for all the information
on their income tax return. That’s true no matter who prepares the return.Here are ten tips for taxpayers to remember when selecting a preparer:
- Check the Preparer’s Qualifications. People can use the IRS Directory of Federal Tax Return Preparers with
Credentials and Select Qualifications. This tool helps taxpayers find
a tax return preparer with specific qualifications. The directory is a
searchable and sortable listing of preparers.
- Check the Preparer’s History. Taxpayers can ask the
Better Business Bureau about the preparer. Check for disciplinary actions
and the license status for credentialed preparers. For CPAs, people can
check with the State Board of Accountancy. For attorneys, they can check
with the State Bar Association. For Enrolled Agents, taxpayers can go to
the verify enrolled agent status page on IRS.gov or check
the directory.
- Ask about Service Fees. People should avoid
preparers who base fees on a percentage of the refund or who boast bigger
refunds than their competition. When asking about a preparer’s services
and fees, don’t give them tax documents, Social Security numbers or other
information.
- Ask to E-File. Taxpayers should make sure their preparer offers IRS
e-file. The quickest way for taxpayers to get their refund is to electronically file their federal tax return and use
direct deposit.
- Make Sure the Preparer is Available. Taxpayers may want to
contact their preparer after this year’s April 15 due date. People should
avoid fly-by-night preparers.
- Provide Records and Receipts. Good preparers will ask
to see a taxpayer’s records and receipts. They’ll ask questions to figure
things like the total income, tax deductions and credits.
- Never Sign a Blank Return. Taxpayers should not
use a tax preparer who asks them to sign a blank tax form.
- Review Before Signing. Before signing a tax
return, the taxpayer should review it. They should ask questions if
something is not clear. Taxpayers should feel comfortable with the
accuracy of their return before they sign it. They should also make sure
that their refund goes directly to them – not to the preparer’s bank
account. The taxpayer should review the routing and bank account number on
the completed return. The preparer should give you a copy of the completed
tax return.
- Ensure the Preparer Signs and Includes Their PTIN. All paid tax preparers
must have a Preparer Tax Identification Number. By law, paid preparers
must sign returns and include their PTIN.
- Report Abusive Tax Preparers to the IRS. Most tax return
preparers are honest and provide great service to their clients. However,
some preparers are dishonest. People can report abusive tax preparers and
suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If a
taxpayer suspects a tax preparer filed or changed their return without the
taxpayer’s consent, they should file Form 14157-A, Return Preparer Fraud or Misconduct
Affidavit.
