Tax return preparation is often an overwhelming task that causes headaches and concerns. Selecting the right tax preparer to examine your financial statements and prepare a tax return is crucial; especially if you own a business.
What To Look for in a Professional Tax Preparer
Recently the IRS mandated all tax preparers to register with them and obtain a Preparer Tax Identification Number (PTIN). This number must be included along with their signature on all tax forms they prepare. Avoid any tax preparers who decline to sign your tax returns. Whether an individual or company, your tax professional should be knowledgeable and professional in all matters.
The role of a tax preparer involves communicating, planning, organizing and assembling financial data. Accuracy and integrity are the highest priority, since you (the taxpayer) are responsible for penalties and fees resulting from inaccurate tax submissions.
When choosing a professional tax preparer, look for:
- A licensed professional such as a Certified Public Accountant, Attorney, and/or Enrolled Agent
- Professional references for you to verify,
- For CPAs, check with the State Board of Accountancy.
- For attorneys, check with the State Bar Association.
- For Enrolled Agents, go to IRS.gov and search for โverify enrolled agent status.โ
Accounting and Tax Return Preparation
In many cases, the individual or firms that perform tax return preparation may also be involved in the normal accounting and planning decisions for an individual or a business throughout the year. State, federal and local tax submissions should not be viewed simply as a once-per-year event, but more as an integral part of an ongoing tax planning process. Since the timing of certain investments and capital expenditures should consider all tax ramifications, ongoing consultation with a knowledgeable tax advisor/preparer is recommended.
Tips From The Internal Revenue Service
Below are a few suggestions from the IRS for selecting a firm or an individual to prepare a tax return:
- Standard service fee
- Avoid preparers who base their fee on a percentage of your refund or those who promise larger refunds than other preparers.
- An e-file return option.
- Make sure your preparer offers IRS e-file. Any paid preparer who prepares and files more than 10 returns generally must e-file their clientsโ The IRS has safely processed more than 1.3 billion e-filed tax returns.
- Make sure the preparer is always accessible and communicative.
In summary, do not ignore even the tiniest of red flags that may arise during your evaluation; after all, your own reputation is at stake.
Ernst Wintter & Associates: Professional Tax Preparers
Do not take unnecessary risks with your tax return preparation needs. Ernst Wintter & Associates LLP provides proven and qualified tax preparation service that is unobtrusive, economical, honest and accurate.
