To file our tax returns, many of us hire a tax preparer or the tax advisors and we it is uncertain that we do not know much about them or even do not know the process to find the best tax preparer. Therefore while hiring a tax preparer, many of us never asked about the credentials of the tax preparer and neither have any idea that whether the tax preparer would represent them in a tax audit. Therefore to solve on these matters there are certain essential tips taken from the Tax preparation assignment help that would help to find the best tax preparer for you.
Essential Tips to Find the Best Tax Preparer
- Ask for the Preparer Tax Identification Number: It is a fact whoever prepares or assist in preparing the federal tax returns requires the IRS number for compensation to have a PTIN. Therefore the volunteer preparers do not need PTINs i.e. Preparer Tax Identification Numbers. It should be made sure that, on your return the income tax preparer puts his or her PTIN number as the IRS requires that too.
- Require a CPA, Law License, or Enrolled Agent Designation: It is evident that the PTIN number is easy to get and so everyone should hire a credentialed Tax preparer along with their certification as a public accountant, licensed attorney, who has already completed the IRS’ Annual Filing Season program or an enrolled agent. All these kinds of credentials of a Tax Preparer need varying amounts of exams, study, and an ongoing education.
- Look for Friends in High Places: It is always good to have membership in a professional association or organization like the National Association of Tax Professionals, the National Association of Enrolled Agents, the American Institute of the Certified Public Accountants or the American Academy of Attorney CPAs as most of the preparer have code of ethics, and various kinds of certification programs. For more information about the Tax Preparer, the students can ask for help from the assignment help firm.
- Compare Fees: The fees of the Tax Preparer should be compared after knowing the fact that the average fee for preparing a tax return that includes an itemized Form 1040 with Schedule A and also a State Tax Return which was $294 in 2018 according to the news of National Society of Accountants. The average cost required in preparing a Form1040 and the State return without the itemized deductions was $188. Therefore the legitimate tax preparers often charge by the hour. Thus according to the National Society of Accountants, if the IRS audits in person, then the tax preparers would charge more than $150 per hour for handling it.
- Reconsider those who do not e-file: To file electronically through the IRS’ e-file system, the IRS requires any paid preparer who does more than 10 returns for the clients. Therefore, not offering e-file by the tax preparer might be a sign indicating that the person is not doing as much of tax preparation as it is thought.