Choosing a Tax Preparer You Can Trust
There are many types of professional tax preparers who can help you file income tax returns. These include attorneys, certified public accountants (CPA), and IRS enrolled agents. Any of these individuals can help you with a variety of tax-related responsibilities, including:
- Preparing and filing your income tax return
- Assisting you in filling out your general tax forms
- Defending you with the IRS for audits and tax court issues
However, keep in mind that the extent of your tax preparer’s capabilities depends on their credentials and whether they have representation rights.
All paid tax preparers must have a preparer tax identification number (PTIN) issued by the IRS. Additional requirements, such as a state license and an electronic filing identification number, are required for IRS enrolled agents.
The IRS requires preparers to be an enrolled agent, an attorney, or a CPA to have representation rights. Meanwhile, the following states require an additional license for your preparer to operate in the location:
California
Connecticut
Illinois
Maryland
Nevada
New York
Oregon
Nevertheless, it’s important for you to be careful when choosing a tax preparer. This prevents you from getting hurt financially. Here are some tips to remember:
- For enrolled agents, you may verify their status on the IRS website.
- For CPAs, you may check with the State Board of Accountancy.
- For attorneys, you may check with the State Bar Association.
- Avoid preparers who boast about larger refunds than their competitors.
- Avoid preparers who base their service fees on a percentage of your refund.
- Prepare your taxpayer’s records and receipts — meticulous preparers will check them.
- Review your tax return before signing it, even when you’re working with a trusted preparer.
- Always check whether your paid preparer signs your returns and includes their PTIN on the file.
At Innovative Tax Relief, you don’t have to stress over choosing a tax return preparer. Our tax preparation services are trusted by the IRS. You can, too.
