Your Guide to Selecting a Tax Return Preparer
There’s so much challenge and responsibility into preparing and filing your income tax return. If you cannot do it on your own, then it is better to hire someone to do it in your place. But then if you have to pay someone to perform this very critical work, you need to be the most careful in choosing a 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. Most companies do not choose just any tax prepare. 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.
Assess 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. Even more, tax return preparers who are not a CPA, enrolled agent or attorney are demanded to pass a new test requirement. If this test is passed, it will make one a Registered Tax Return Preparer.
Check the History of the Preparer
Before you decide to hire a specific individual to be your income tax return preparer, it is important that you take time to check his history. Check if the person you are eyeing at comes with a questionable history with the BBB or Better Business Bureau. You may also check the licensure status of the preparer and if he has had disciplinary actions from the IRS office of enrollment, state board of accountancy and state bar associations.
Check Out How Much You Will Have to Pay to the Preparer
Tax preparations may come with different methods for charging companies. But then usually, it does not help you if you choose a preparer who charges you on a percentage of 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. It is also important that the preparer sends the tax refund directly to an account name of your company instead of personally.