Hiring a Tax Preparer: Mistakes to Avoid
If you own a business or makes income for your family, you know for a fact that paying taxes is a necessity; and with that in mind, the job of complying with it, including planning and preparation is quire burdensome, not to mention boring. The good news is that with the emergence of companies and services offering to do it for you, you no longer have to carry that burden all by yourself. But similar to how you look for other kinds of services, there are possible mistakes you might commit in the hiring process, thereby putting your tax filing in disarray.
Therefore, if you want an error and issue-free tax preparation and filing, be sure you remember these mistakes:
1 – It’s plain stupid to hire a company or person who cannot prove he or she is registered with the Internal Revenue Service (IRS) Be reminded that every tax preparer or tax preparation company needs a Preparer Tax Identification Number. When it comes to the preparation of returns for compensation, the IRS does not allow anyone who isn’t registered and does not have a PTIN. So if you plan on hiring one who isn’t registered, you’re literally wasting your time.
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2 – Avoid dealing with a tax preparer who downright guarantees you that there will be a huge refund. You need to understand that in determining if you are qualified for a refund, it isn’t based on how clever your tax preparation service is or if they have any inside connection within the IRS; the truth is it’s all about individual factors and circumstances about your income.
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3 – Never go for a tax preparer who will charge you of a percentage of your refund. You never should even contemplate on accepting this kind of arrangement because if you do, they will easily increase the amount of your refund, the purpose of which is for you to pay them with a larger amount, too. Payment to the tax preparer is only one and it is based on the amount of time they spent on preparing your documents as well as the number of forms they handled.
4 – Also, avoid someone who declines to sign the finished returns. This is one good way to gauge or measure the honesty and reliability of the tax preparation services you intend to hire. Be reminded that all tax preparation services are compelled by law through the IRS to sign all tax returns that they are responsible for preparing; and yes, there is no exception to this rule.
For you to successful in your search for a tax planning and preparation company, you need to arm yourself with the information provided above so that you won’t end up making any of those mistakes mentioned.