Hiring a Tax Return Preparer: How Do You Do It Right?
Tax preparation is a task coupled with challenge and responsibility. If you are not able to do it, then it would be wise to just employ someone who can do it in your stead. However, if you have to pay someone to carry out this important job, you need to make sure that you are choosing the right person. Remember that the Internal Revenue Service will hold you liable for the mistakes of your tax return even if you are not the one preparing it. So many companies today do not choose a tax return preparer carelessly. They go for individuals who are professional, experienced and honest. Kindly read on to know how to get a good tax return preparer for your company.
Evaluate the Person’s Qualifications
The new regulations demand that all individuals preparing tax returns for companies must have a PTIN or Preparer Tax Identification Number. Aside from ensuring the person you hire comes with a PTIN, you also have to inquire if he is affiliated with a recognized 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.
Evaluate the Person’s History
Checking your preparer’s history prove to be a very essential task in selecting a person who will represent your company with the IRS and preparer your text under your name. You need to verify if the tax preparer is having some questionable standing with the Better Business Bureau. You can consult your state bar association, IRS office of enrollment and state board of accountancy to know if the individual you are thinking of hiring had been to disciplinary actions and what has become of their licensure status.
Check the Service Fees of the Preparer
Tax preparations may come with different methods for charging companies. But to be safe, you must not select one who charges fees on the basis of your refund percentage. Do not even choose someone who claims that he has gotten larger refunds than other tax preparers. Even more, it is essential to make sure that your selected tax return preparing is professional and is sending refunds to companies through the bank instead of in person.
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