How to Make Sure Your Tax Preparer Really Knows What He’s Doing
If you’re hiring someone to do your taxes this year (and there are several situations in which you should ), you need to make sure that person isn’t trying to scam you. Unfortunately, there are tax “professionals” who are underqualified or outright dishonest and will use your business as an opportunity to engage in identity theft or fraud. Since you are legally responsible for paying your taxes , it is important to vet tax preparers before you assign them to prepare your tax return.
Check their PTIN
By law, all qualified tax preparers who are paid to assist with filing federal returns must have a valid Taxpayer Identification Number (PTIN) registered with the IRS. These are the minimum requirements for any professional you hire. However, not all tax return preparers have the same education and experience : certified public accountants (CPAs), attorneys, and enrolled agents can prepare federal returns, but there are also qualified tax preparers who do not have these credentials and have more limited range of responsibilities. volume.
Legitimate tax professionals will sign and include their PTIN on any tax return they prepare. “Ghost” return preparers are trying to deceive consumers by not signing returns – this is a red flag.
Check their availability
There are qualified tax professionals who work seasonally or are more limited in how they help clients (for example, they can’t represent you in the event of an audit), but you should first look for someone who will be available to respond throughout the year. questions about your return after tax season ends.
Check their credentials
As mentioned above, tax preparers don’t have to be CPAs, but you should check their credentials and read customer reviews and complaints on sites like the Better Business Bureau, Google, and Yelp to make sure your tax preparer is legitimate.
You can also check their membership in professional organizations and look for disciplinary action through the State Board of Accountants (for CPAs), the State Bar Association (for attorneys), or the IRS Enrolled Agent database .
You can also work with an authorized IRS e-file provider.
Check their commission structure
The IRS warns against using tax preparers who charge based on a percentage of your refund, as well as those who promise to give you a larger refund than other tax preparers. You should also avoid those who claim to deposit the refund into their account before paying you. Be sure to check the bank account and routing numbers on your return before submitting it.
Check out their preparation methods
A legitimate tax preparer will be thorough and ask for documentation and receipts to support your tax return. If they don’t collect information about your income, deductions and tax benefits, be careful. Tax returns filed electronically must use Form W-2, not pay stubs, so if your preparer uses the latter, don’t proceed.
Finally, review your return thoroughly before signing it and don’t submit anything blank or incomplete. Again, you are legally responsible for the information on your return, even if someone else helps prepare it.