How to choose a tax specialist. 9 rules from ForumDaily

Фото: Depositphotos

April 17 is the deadline for paying taxes in 2018. The first experience of communicating with representatives of the tax administration (IRS) can be very painful if the tax specialist, or preparer, is selected incorrectly. ForumDaily has collected 9 “red flags” - signs that you should not use the services of this particular accountant.

1. The tax professional does not have a PTIN. This is one of the requirements of the tax administration (IRS). Any specialist who helps prepare a federal tax return (for an appropriate fee or out of spiritual kindness) must have a valid PTIN. If your tax specialist does not have one, he also does not have the right to prepare your federal tax returns.

2. The tax specialist refuses to sign your Tax Return (tax return). Tax specialists must not only have a PTIN, but also sign a tax return. If your tax return is not signed by the drafter, he is not entitled to file it.

3. The tax specialist insists that you must file your tax return yourself. Gone are the days when you had to mail your tax return. This option (please change) is only possible in exceptional circumstances: the law requires most preparers to file prepared returns electronically. If you are not provided with this service without explanation, it’s time to start worrying.

4. Your financial situation, compared with the previous year, has not changed, but the tax specialist promises you a higher tax refund. Most likely, the tax specialist exaggerates your write-offs. In this case, you should ask for an explanation and do it before signing the declaration.

Фото: Depositphotos

5. A tax professional wants you to sign an empty tax return. Comments are unnecessary, you have known this rule since childhood: never sign blank forms and documents whose text you are not familiar with. In the case of a tax return (at best), you will only be punished for perjury. At worst, for tax evasion, perjury, and God knows what else the IRS will see.

6. A tax professional wants you to send a refund of overpaid taxes to someone else's account. The tax collector may motivate this with the convenience of a refund or even hint that money can return somewhat faster. A similar option is prohibited by the IRS. Moreover, it is the surest way to lose your tax refund forever: as a rule, after signing the relevant documents, the compiler disappears forever.

7. The tax collector evaluates your own services, depending on the percentage of your tax refund. According to the IRS's own statistics, tax preparers whose fees are based on a percentage of their refund are most likely participating in a fraudulent scheme. The fee of a quality professional in this area can be based on a number of completely different factors - the type of return (for example, 1040 or 1040-NR), the number of forms, the complexity or even neglect of your relationship with taxes. However, as required by the IRS (Pub 1345), tax preparers cannot base their services on a percentage of your refund or any other figure on your tax return.

Фото: Depositphotos

8. Tax specialist promises to return to a specific date. The IRS claims that there are no guarantees that a refund will be credited to your account within a certain time. Returns depend on many factors, and most taxpayers who send their declarations electronically and use direct contributions receive a return within 10 business days. You should not trust tax preparers who give guarantees regarding the date of receipt of the return.

9. The tax specialist guarantees a refund or claims that you do not have to, without even looking at your tax documents. Even very experienced preparers who prepare many returns cannot always know for sure whether you will receive a refund.

Material prepared in conjunction with Michael Koloden CPA PC

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