SACRAMENTO, Calif., Feb. 3, 2015 /PRNewswire-USNewswire/ -- Are you searching for a tax professional you can trust to do your taxes this year? You are not alone! About 60 percent of taxpayers use tax professionals to prepare their returns, and with the added complexities of the Affordable Care Act, this number will continue to grow. "Filing a tax return can be one of the biggest financial transactions of the year, so taxpayers should choose their tax return preparers carefully," said IRS Commissioner John Koskinen recently. The IRS has also warned taxpayers to be on the lookout for unscrupulous return preparers. Here are five tips to help you select the right tax preparer.
Check to be sure the preparer has an IRS Preparer Tax Identification Number (PTIN) and is authorized to prepare federal tax returns. Anyone who prepares or assists in preparing federal tax returns for compensation must have a valid 2015 PTIN before preparing returns.
Ask the tax preparer if they have a professional credential, such as an enrolled agent license. All paid tax preparers in California must have a professional credential. Enrolled agent status is the highest credential the IRS awards. An enrolled agent has earned the privilege of representing taxpayers before the IRS by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.
Find out if the preparer belongs to a professional organization and attends continuing education classes to stay on top of tax law changes, including the Affordable Care Act provisions. Members of the California Society of Enrolled Agents (CSEA) are required to complete twenty percent more education than required by the IRS, and must conform to a strict code of professional ethics.
Make sure the preparer is available to assist you with tax issues after you file your return, even after the April 15 due date. Enrolled agents advise and represent their clients on all matters of taxation throughout the year, not just during tax time. If you have tax questions, your enrolled agent can assist you in ensuring that you do not pay too much, and help you minimize your risk of an audit. Enrolled agents also have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.
Provide records and receipts. Good preparers will ask to see your records and receipts. They'll ask you questions to determine your total income, deductions, tax credits and other items. Do not rely on a preparer who is willing to file your return using your last pay stub instead of your Form W-2.
Want to know how this year's tax changes will affect you? On Tax Help Day, February 7, 2015, enrolled agent tax experts will answer tax questions for free at locations throughout California. They won't prepare any returns or provide any written advice, nor will they bill anyone for their time. Remember to bring any relevant tax documents and information with you, so your enrolled agent can better assist you. For more information or to find a Tax Help Day location near you, visit www.csea.org/taxpayers/tax-help-day or call 1-800-TAXPRO-5.
About the California Society of Enrolled Agents
The California Society of Enrolled Agents (CSEA) is a non-profit association of more than 3,500 federally licensed tax professionals that offers Californians guidance in choosing a tax professional to assist them with tax planning, preparation and representation. Enrolled Agents (EAs) advise and represent their clients on all matters of taxation throughout the year, not just during tax time. If you have tax questions, your Enrolled Agent can assist you in ensuring that you do not pay too much, and help you minimize your risk of an audit. Visit www.csea.org or call 1-800-TAXPRO-5 to find an Enrolled Agent near you.
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