Page 68 - BusinessWest February 19, 2024

Make the Right Choice
IRS Offers Advice on What to Look for in a Tax Preparer
“Taxpayers are ultimately legally responsible for all the information on their income tax return, regardless of who prepares it.”
The Internal Revenue Service today reminds tax- payers that carefully choosing a tax professional to prepare a tax return is vital to ensuring that their personal and financial information is safe, secure, and treated with care.
Most tax-return preparers provide honest, high-qual- ity service. But some may cause harm through fraud, identity theft, and other scams. It is important for tax- payers to understand who they’re choosing and what important questions to ask when hiring an individual or firm to prepare their tax return.
Another reason to choose a tax preparer carefully is because taxpayers are ultimately legally responsible for all the information on their income tax return, regardless of who prepares it.
The IRS has put together a directory of federal tax-return preparers with credentials and select quali- fications (irs.treasury.gov/rpo/rpo.jsf) to help individu- als find a tax pro that meets high standards. There
is also a page at irs.gov for choosing a tax profes- sional that can help guide taxpayers in making a good choice, including selecting someone affiliated with a recognized national tax association. There are differ- ent kinds of tax professionals, and a taxpayer’s needs will help determine which kind of preparer is best for them.
Red Flags to Watch Out For
There are warning signs that can help steer tax- payers away from unscrupulous tax-return preparers. For instance, not signing a tax return is a red flag that a paid preparer is likely not to be trusted. They may
be looking to make a quick profit by promising a big refund or charging fees based on the size of the refund.
These unscrupulous ‘ghost’ preparers often print the return and have the taxpayer sign and mail it to the IRS. For electronically filed returns, a ghost preparer will prepare the tax return but refuse to digitally sign it as the paid preparer. Taxpayers should avoid this type of unethical preparer.
In addition, taxpayers should always choose a tax professional with a valid preparer tax identification number (PTIN). By law, anyone who is paid to prepare or assists in preparing federal tax returns must have a valid PTIN. Paid preparers must sign and include their PTIN on any tax return they prepare.
Other Tips
Here are a few other tips to consider when choos- ing a tax return preparer:
• Look for a preparer who’s available year-round. If questions come up about a tax return, taxpayers may need to contact the preparer after the filing season is over.
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24 FEBRUARY 19, 2024 << ACCOUNTING & TAX PLANNING >> BusinessWest