income tax preparer

Many people get stuck when they are looking at picking the best income tax preparer. It is a daunting task, especially when you are unsure how to choose the right candidate to help you file the income taxes. 

Many people do different things when they are picking a tax preparer. But not all the methods that you follow are right. Here are some things that you should avoid doing when you are in search of a tax preparer. 

Avoid Tax Preparers That Do Not Have a PTIN

Yes, this is the first thing you should be checking when you are looking for a tax preparer. Check with the tax preparer to see if the tax preparer has a valid PTIN, which the government gave after 2015. Do not select a tax preparer that does not have a PTIN. 

Signing the Document

Apart from having a PTIN, a tax preparer also needs to sign the tax return. Tax preparers should be able to sign the tax return form electronically. If the tax preparer does not sign the document, a tax preparer can’t submit the returns. That’s the reason why one must check if the tax preparer has the authority to sign before picking the tax preparer. 

Promise You Higher Refunds

Suppose a tax preparer tells you that you will get higher refunds even when nothing related to your business changes. It should be a red flag. You should, therefore, do due diligence before taking things further. Always ask for an explanation of why you will get a lot of refunds. 

You do not want to inflate your deductions to get higher returns. Only when you are 100% sure about the refund plan to utilize an income tax preparer’s services.

Never Sign a Blank Tax Return

Here’s another red flag that should keep you on your toes. Always read things before signing. The same principle applies when you are planning to apply for a tax return. Do not forget that you will sign a tax form under the clause that you will accept a penalty for perjury. 

Review and double-check the documents before signing them. But when the forms are blank, you can review anything. It is the main reason you should be cautious when a tax preparer is preparing a blank document. 

personal tax preparation services

Refunds to an Unknown Accounts

Why would a tax preparer want you to accept refunds to an alien account. But, there are tax preparers that expect their clients to do this thing. 

If a tax preparer asks you to do this, you should know that it is not the right thing to do. IRS prohibits you from doing this thing. Some preparers might disappear the moment the refund hits their account. 

Fees Depend on Refund

An income tax preparer who bases his fee on the amount you will get as a refund might be planning to implement the fraudulent activity. It is the crucial reason you should not pick one that expects you to do this thing. IRS again prohibits you from doing this task.