Many people hire a professional when it’s time to file their tax return. If you pay someone to prepare your federal income tax return, the IRS urges you to choose that person wisely. Even if you don’t prepare your own return, you’re still legally responsible for what is on it.
Here are ten tips to keep in mind when choosing a tax preparer:
- Check the preparer’s qualifications. All
paid tax preparers are required to have a Preparer Tax Identification
Number or PTIN. In addition to making sure they have a PTIN, ask the
preparer if they belong to a professional organization and attend
continuing education classes.
- Check the preparer’s history. Check with the Better Business
Bureau to see if the preparer has a questionable history. Check for
disciplinary actions and for the status of their licenses. For certified
public accountants, check with the state board of accountancy. For
attorneys, check with the state bar association. For enrolled agents,
check with the IRS Office of Enrollment.
- Ask about service fees. Avoid preparers who base their fee
on a percentage of your refund or those who say they can get larger
refunds than others can. Always make sure any refund due is sent to you
or deposited into your bank account. Taxpayers should not deposit their
refund into a preparer’s bank account.
- Ask to e-file your return. Make sure your preparer offers
IRS e-file. Any paid preparer who prepares and files more than 10
returns for clients generally must file the returns electronically. IRS
has safely processed more than 1.2 billion e-filed tax returns.
- Make sure the preparer is available. Make sure you’ll be
able to contact the tax preparer after you file your return - even after
the April 15 due date. This may be helpful in the event questions come
up about your tax return.
- Provide records and receipts. Good preparers will ask to see
your records and receipts. They’ll ask you questions to determine your
total income, deductions, tax credits and other items. Do not use a
preparer who is willing to e-file your return using your last pay stub
instead of your Form W-2. This is against IRS e-file rules.
- Never sign a blank return. Don’t use a tax preparer that asks you to sign a blank tax form.
- Review your return before signing. Before you sign your tax
return, review it and ask questions if something is not clear. Make sure
you’re comfortable with the accuracy of the return before you sign it.
- Ensure the preparer signs and includes their PTIN. Paid
preparers must sign returns and include their PTIN as required by law.
The preparer must also give you a copy of the return.
- Report abusive tax preparers to the IRS.
You can report abusive tax preparers and suspected tax fraud to the
IRS. Use Form 14157, Complaint: Tax Return Preparer. If you suspect a
return preparer filed or changed the return without your consent, you
should also file Form 14157-A, Return Preparer Fraud or Misconduct
Affidavit. You can get these forms at IRS.gov or by calling 800-TAX-FORM
(800-829-3676).
- Tax Topic 254 - How to Choose a Tax Return Preparer
- Choosing a Tax Professional
- Verify the Status of an Enrolled Agent
- How to Make a Complaint About a Tax Return Preparer
- How to Report Suspected Tax Fraud Activity
IRS YouTube Videos:
Circular 230 Disclosure
Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication
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