About 56% of Taxpayers paid someone to prepare their tax return. Why is it important to pick the right preparer?
Georgia has the second largest number of tax fraud complaints in the Nation, as reported by the Federal Trade Commission. Selecting the right tax professional is critically important because taxpayers are ultimately responsible for what they submit on their tax return. Most tax professionals provide honest and quality service, but there are dishonest preparers who operate each filing season to perpetrate refund fraud, identity theft and many other scams that hurt honest taxpayers.
How do I choose a tax return professional preparer?
First you need to ask some questions and do some research. Avoid Pop-up preparers – here today gone tomorrow when you need them.
Ask if the preparer has an IRS Preparer Tax Identification Number (PTIN) Paid tax return preparers are required to register with the IRS and have a PTIN.
Ask whether the tax return preparer has a professional credential:
- Enrolled Agent – An enrolled agent is a tax practitioner who is licensed at the federal level by the Internal Revenue Service. In fact, enrolled agent status is the highest credential awarded by the IRS. (Like Rod!)
- CPA
- Tax Attorney
- Un-enrolled Preparer – Annual Filing Season Program participants
All these are required to attend continuing education classes on tax law and ethics.
What are some of the “Red Flags” I should look out for when selecting a Tax Preparer?
Crooked tax preparers will lure you with the promise of big refunds.
Fraudulent tax preparers often work out of temporary pop-up shops.
Watch out for tax preparers who say your refund will be deposited in their bank account.
The tax preparer also should sign your return, add their PTIN to it and give you a complete copy of the return.
Never sign a blank return – if you‘re asked to sign a tax return that is incomplete - don’t do it.
Don’t allow a tax preparer to prepare a return using only your pay stub – it’s against IRS rules.
Review you bank information for refunds
Review you final return before it is e-filed.
Report abusive tax preparers to the IRS
TAX TIP:
To find other tips about choosing a tax preparer, understanding the differences in credentials and qualifications, researching the IRS preparer directory and learning how to submit a complaint regarding a tax return preparer, the IRS Website.
www.irs.gov/chooseataxpro