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Who Is Preparing Your Return? #tax #taxreturn

 

I often meet individuals and small business owners, who pay to have their tax returns prepared by people who are not qualified and/or not registered with the IRS to prepare the return, and can not represent them before the IRS.

 How can you tell, if who prepared your return is qualified or registered with the IRS?
  1. When a paid preparer is preparing your return, they should sign and complete their PTIN info on the first page of the return.
  2. The IRS also requires preparers and representatives to register each year.
    1. Also if in doubt, you can check the IRS web site. https://irs.treasury.gov/rpo/rpo.jsf
  3. Did you know only CPA’s, Enrolled Agents, and Attorneys can represent your before the IRS on tax matters ?
    1. Also, here is the link for the IRS definitions of credentials. https://www.irs.gov/tax-professionals/understanding-tax-return-preparer-credentials-and-qualifications
 According to IRS Circular 230, tax preparers must adhere to a certain code of conduct to represent before the IRS.
You can also verify Attorneys and CPAs with State Board web sites of the state in which they are licensed to practice.
Everyone makes mistakes but some can be avoided.
For example:
  • A corporation filing as a sole proprietor
  • Wrong depreciation calculation for assets, or
  • Wrong filing status.

Just to name a few.

 Remember, you are earning income and possibly paying over 20% upwards to 50% towards income taxes. At the very least, get a qualified professional.
  • Would you let someone with no training perform surgery?
  • How about someone who went to law school but did not pass the bar, can they represent you in court?
Does using a CPA, Attorney, or Enrolled Agent mean you are going to get a refund each time or they never make a mistake, absolutely not. By practicing due diligence, most people can avoid some mistakes and in some cases avoid a even IRS inquiry.
If you have tax challenges, give us a call 832-303-3995 or email byron@byronrileycpa.com.

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