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Taxpayers should know what they’re getting when they choose a tax preparer

October 9, 2022

Taxpayers should know what they’re getting when they choose a tax preparer

It’s crunch time for submitting tax returns, but those in a hurry should exercise caution when selecting a tax preparer. If they have an IRS preparer tax identification number, anyone can be compensated for tax return preparation. However, tax professionals have varying levels of education, training, and experience.

The optimum type of preparer for a taxpayer is determined by the taxpayer’s needs. The majority of tax return preparers give exceptional and expert tax services. However, each year some taxpayers are victimized by unreliable or dishonest tax preparers. The taxpayer is ultimately responsible for the information on their tax return, regardless of who prepared it.

Check the IRS Directory of Federal Tax Return Preparers. This searchable and sortable public directory assists taxpayers in locating a qualified tax return preparer.
Check the preparer’s history with the Better Business Bureau. Check for disciplinary measures against tax return preparers with credentials. Taxpayers seeking CPAs should consult the State Board of Accountancy. For attorneys, the State Bar Association should be consulted. On IRS.gov, taxpayers can verify Enrolled Agent status.
Inquire about fees. Avoid tax preparers who base their costs on a percentage of the refund or who offer to deposit all or a portion of the refund into the taxpayer’s bank account. They should be suspicious of tax return preparers that promise to be able to obtain higher refunds than their competitors.
Inquire if the preparer will utilize E- File. Taxpayers should ensure that their tax preparer offers electronic filing of their tax returns. Some tax preparers only work during the tax season. Consider whether the tax preparer will still be in business after the filing deadline has gone.
Ensure the preparer signs and includes their preparer tax identification number. Taxpayers should do this because they may need the preparer to answer questions about the preparation of the tax return. Preparers of tax returns who are compensated are required to have a PTIN. Preparers must provide their PTIN on returns.
Understand the qualifications of the tax preparer. Enrolled agents, certified public accountants, and attorneys have unlimited practice privileges and may represent taxpayers before the IRS in any tax situation.

Need a tax preparer to help you in filing your tax returns?

Don’t worry, we’ll be there to assist you. Send an email to admin@fas-accountingsolutions.com or give us a ring at 713-855-8035 if you need to get in touch.