Choosing a Tax Return Preparer
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.
1/21/2021 08:47:06 pm
I liked it when you shared that it is best to choose a tax preparer who is qualified by referring to the IRS Directory. My sister just mentioned the other day that she has to file for a tax return for this year and she does not know how to do it since it is going to be her first time. I will suggest to her looking for a reliable person who is qualified to help with it.
3/24/2021 05:22:24 am
I enjooyed reading your post
6/8/2021 01:22:03 pm
I can understand how a business could really benefit from getting the right kind of tax returns in order to be more effective, and have better finances. Making sure that they can get some help from a professional could allow them to be a lot safer. It was interesting to learn about how they must have an identification number that will allow them to know what credentials, and qualifications they have in order to be safer.
10/25/2021 12:22:41 pm
It's good to know that there are people you can hire to help you out with your taxes. I've always had a hard time with them, so it would be good to have someone helping me out. That way, I can ensure that I file them all correctly.
2/8/2022 04:35:44 am
A Preparer Tax Identification Number is now required for all compensated tax return preparers (PTIN). Ask if the preparer is a member of a professional organization and attends continuing education programs in addition to ensuring they have a PTIN. A new exam requirement is also being phased in by the IRS to ensure that people who are not enrolled agents, CPAs, or attorneys have met the minimum competency criteria. After passing the test, those who take it will become a Registered Tax Return Preparer.
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