Case Study: My Experience With Taxes

Hiring a Tax Return Preparer: How Do You Do It Right?

Tax preparation is a task coupled with challenge and responsibility. If you know you cannot do it, then it would be advisable to just hire someone who can. However, if you have to pay someone to carry out this important job, you need to make sure that you are choosing the right 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. They often select a person who is professional, well-experienced and honest. Kindly read on to know how to get a good tax return preparer for your company.

Check 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. To add, the IRS is bringing in a brand new test requirement for those paid tax preparers who are not an attorney, CPA or enrolled agent. If this test is passed, it will make one a Registered Tax Return Preparer.

Check the History of the Preparer

Checking the history of the person before coming up with a decision to take him as your tax preparer matters a lot. You need to verify if the tax preparer is having some questionable standing with the Better Business Bureau. You may also check with the state boards of accounting for certified public accountants, the IRS Office of Enrollment for enrolled agents and state bar associations for lawyers if there had been any disciplinary action sanctioned on the preparer and what is status may be.

Check Out How Much You Will Have to Pay to the Preparer

Tax preparations may come with different methods for charging companies. However, it is often not recommended to select a preparer who bases his fees on your refund. In addition to that, do not choose a preparer who claims that he has provided larger refunds to your companies than other preparers can. Also, you have to make sure that the refund of taxes are sent to your company’s bank account number.

Source: online tax return