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 cannot do it on your own, then it is better to hire someone to do it in your place. But if you have to pay someone else to do the critical task for your company, you have to be very careful in making a choice. 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. A lot of companies are playing safe with choosing their tax return preparer. They often select a person who is professional, well-experienced and honest. Below are some guiding points in hiring a tax return preparer.
Assess the Qualifications of the Preparer
The new regulations demand that all individuals preparing tax returns for companies must have a PTIN or Preparer Tax Identification Number. In addition to ensuring the person you choose has a PTIN, you have to ask if he is a member of a professional accounting or tax preparation organization. In addition to that, your hired preparer must be attending a continuing education programs for tax preparation in order to provide you with the assurance that he can handle the job in accordance to the updated regulations of the IRS. The IRS is even providing a new test requirement for preparers who are not CPAs, attorneys and enrolled agents. Individuals who are able to pass this test will become 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. You need to verify if the tax preparer is having some questionable standing with the Better Business Bureau. You can consult your state bar association, IRS office of enrollment and state board of accountancy to know if the individual you are thinking of hiring had been to disciplinary actions and what has become of their licensure status.
Check the Service Fees of the Preparer
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. More than that, do not go for the individual who says they can have larger refunds than other preparers. It is also important that the preparer sends the tax refund directly to an account name of your company instead of personally.
Source: online tax return