If you are one of the millions of taxpayers who will use the services of a professional tax preparer to file your return this year, then IRS has a message for you. Use caution when selecting a preparer because the Taxpayer is ultimately responsible for his or her return even when it has been prepared by someone else.
There are several things you can look for to ensure the person you select has the appropriate qualifications to suite your needs.
Credentials
According to the IRS, only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection actions and appeals. While other return preparers are limited to representing taxpayers only in audits regarding a return they signed as a preparer.
Investigate
You should also be as careful when selecting a tax preparer as you would when selecting a first car for your teenage daughter or a health care professional. That means contacting your local Better Business Bureau or state boards that have oversight for accountants and tax attorneys.
Inquiries
Due diligence on your part should also include checking with references. Always ask clients who have used the tax professional before for feedback on their level of satisfaction and the preparers' performance.
Fees
You should avoid any preparer like the plague if he or she claims they can get you a larger refund than other preparers. Also be wary if a preparer offers to guarantee results or base fees on a percentage of the amount of the refund.
Availability
Since the possibility exists that your return may be audited months or years after it is filed, it is important to select an individual or firm that will be around to answer questions about the preparation of your tax return
Taxpayers are encouraged to report suspected tax fraud and abusive tax preparers to the IRS on Form 3949-A, Information Referral. If you do not wish to use Form 3949-A, you may send a letter to the Internal Revenue Service, Fresno, CA 93888.Be sure the letter includes the name and address of the person you are reporting, their taxpayer ID number, brief description of the alleged violation, an estimated dollar amount of any unreported income, and your name, address, and daytime telephone number.
Earnest Young is a tax and accounting writer for ,
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