Need a Tax Preparer? Facts to Know
As a provider of one of the nation’s largest database of accountant, advisors and financial planners, I found the following very interesting article at:
http://irsattorneys.webarticles.co.za/need-a-tax-preparer-important-facts-to-know.html
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Every tax season someone will write a story about how to choose a tax preparer, the latest scams to watch out for, new tax laws, identity theft issues and on and on it goes until you hit panic mode. So much research, so much time and what if you owe money?
Each year the California Tax Education Council (CTEC) receives phone calls from taxpayers desperately looking for information about their tax preparer they should have learned day one. A surprising number of callers do not even know the tax preparer’s name.
Why do so many of us go into tax season with such immense trepidation until it comes to hiring a professional tax preparer?
Before you Google, flip through the yellow pages or walk into the nearest tax preparation office, know this: If you live in California or Oregon, make sure your tax preparer is legal.
In California, paid tax preparers who are not an attorney, certified public accountant (CPA) or enrolled agent (EA), are required by law to register with CTEC. All CTEC Registered Tax Preparers (CRTPs) must complete tax education courses each year and keep a current bond before they can prepare tax returns for a fee.
If you live in Oregon, all paid tax preparers must be licensed through the Oregon State Board of Tax Practitioners.
Maryland recently passed legislation in 2008 to also require that its paid tax preparers complete education requirements and pass an exam before they can prepare tax returns.
As for the rest of you, choose your tax preparer cautiously. There is no oversight for tax preparers in other states who are not an attorney, CPA or EA. In other words, the training, education and ethical standards these tax preparers go by are set at their own discretion.
Hiring the wrong tax preparer could result in penalties, missed deductions and no protection against mistakes or fraud.
Below are the top ten questions to ask a tax preparer (They should answer “yes” to all ten questions):
1. Will you sign my tax return?
2. Do you have a written privacy policy? Can I get a copy of it?
3. Do you have proof of a tax preparer bond (Required for all CRTPs) and/or errors and omissions insurance (Optional for all tax preparers)? If not, what protections will you offer me and can I get it in writing?
4. If a situation should arise with the IRS, will you stand by your work?
5. Do you take continuing education courses on tax laws? Can you provide proof?
6. Can you provide me with a list of references I can contact about your work?
7. Will you be available after April 15th?
8. Have you ever prepared a tax return dealing with my situation?
9. Will you provide me with a copy of my completed tax return?
10. Will you go over the finished tax return with me?
CTEC was established in 1997 by the California State Legislature to protect the public by registering tax preparers within the state. For more information visit www.ctec.org or call (877) 850-CTEC.
CTEC is a nonprofit organization that is mandated by the State of California. CTEC’s mission is to protect the public by ensuring paid tax preparers (excluding attorneys, CPAs and enrolled agents) are registered, educated and bonded.
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By Leon Clinton