When filing tax returns, it is advisable to seek the help and guidance of professionals. The IRS usually advises taxpayers to seek the help of tax professionals when filing tax returns so that they do it efficiently and effectively. The IRS further emphasizes that the taxpayer should, at all times, be responsible for what is filed, even when done by a tax expert. Thus, choosing a tax preparer should be done with utmost care, with someone you can trust.

The IRS requires taxpayers, especially those who seek help from tax experts, to make sure that the professionals sign the tax returns, and also enter their PTIN- Preparer Tax Identification Numbers.

The most important factors to consider when choosing a tax preparer (tax expert) are:

        i.            Qualifications of the preparer. All tax preparers are supposed to be in possession of PTIN, as per the new regulations. Besides having a PTIN, it is important to enquire that they are affiliated to a professional association and that whether they regularly attend educational classes. The IRS is also putting in place test requirements to ensure that tax preparers are qualified and meet all competency requirements.

      ii.            History of the preparer. Here, one should check to see if the preparer has any questionable history, especially in connection with BBB (Better Business Bureau). Further, the taxpayer should check the status of the expert’s license and establish whether and disciplinary actions have been dealt out to him/her. The IRS Office of Enrollment can be contacted to enquire about enrolled agents.

    iii.            The taxpayer should find out whether the taxpayer has an electronic filing system in place. Usually, paid preparers who handle more than ten clients’ returns handle the filing process electronically. With the advancement of technology, it is paramount to choose a preparer who has IRS e-file system.

    iv.            Provide necessary receipts and records required to prepare tax returns. Normally, reputable preparers ask a number of questions so that they can be able to accurately determine an individual’s total income, and their qualifications for deductions, expenses, and other key necessities. It is a violation of the rules of the IRS e-file system to use a preparer that files returns electronically before receiving his/her Form W-2.

      v.            The tax preparer chosen should always be available for consultation. It is important to choose a tax preparer that is available for consultation, even after the date of submission of returns is due, just in case issues to do with tax returns emerge later on .

    vi.            A blank tax return form should never be signed. One should avoid any preparer that requires him/her to put your signature on a blank return.

  vii.            The preparer should sign and include his/her PTIN in the form. The law requires that any paid preparer signs and put his/her PTIN in the return form. The responsibility of the contents of the form lies in the taxpayer’s hands and not the preparer. The taxpayer must also obtain a copy of the return from the preparer.

1. Before signing the return, it is important for the taxpayer to carefully review it. He/she must go through the returns and ask questions where there is doubt; it is important to understand the contents of the return before signing it.

    ix.            Enquire about the service fee of the preparer. Preparers who charge their fee based on a fraction of the refunds should be avoided. Similarly, those who boast that they can get larger refunds should also be avoided. Any refund from the IRS should be deposited into the taxpayer’s account and not the preparer’s.

      x.            Abusive or suspected tax preparers should be reported to IRS. They can be reported to the IRS by filling out Form 14157.