As the tax filing season approaches, it's time to start thinking about who will prepare your state and federal tax returns.
In 2017, more than 132 million individual and family tax returns were e-filed, the most accurate, safest, and easiest way to file. More than 16 million were prepared on a computer and printed or prepared by hand, then mailed.
The IRS stresses that no matter who prepares a federal tax return, by signing the return, the taxpayer becomes legally responsible for the accuracy of all information included.
Many taxpayers pay for tax return preparation. By law, all paid tax preparers must have a Preparer Tax Identification Number, or PTIN. Paid preparers must sign the return and include their PTIN. The IRS offers tips to help taxpayers choose a tax return preparer wisely. The Choosing a Tax Professional page has information about tax preparer credentials and qualifications. The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help identify many preparers by type of credential or qualification.
Taxpayers who use paid preparers should still keep copies of their most recent tax returns for their own records. If using a software product for the first time, you may need your adjusted gross income amount from your prior-year return to verify your identity.
Always avoid fly-by-night preparers who may not be available after the due date or who base their fees on a percentage of the refund.