A good number of companies depend on professional tax preparers to file their tax returns. Many decision-makers in organizations prefer to outsource tax filing services to save on cost and time. A big challenge, however, lies in finding a dependable third-party company that can be entrusted with filing tax returns. There are a lot of factors to be considered before settling on a particular service provider.
Since outsourcing tax filing services translates to giving out the company’s financial state, a lot of trust needs to be built between the company and the third-parties. According to a survey, 80% of people who outsource tax preparation services never ask about the preparer’s credibility. If you are going to give everything about your income, bank details, and financial statements, there is a need to find a reliable and trustworthy tax preparer such as Taxfyle.
Here are tips on how to find a good tax preparer.
1. They should have a CPA, law license or Enrolled Agent designation
When looking for a tax preparer, it is advisable to get someone who is a certified public accountant and has completed the IRS Annual Filing Season program.
2. Enquire for Preparer Tax Identification Number (PTIN)
Anyone who participates in preparing or assisting in tax preparation is required to have a PTIN by IRS. Therefore, before you settle on a provider for tax preparation, ensure they have a PTIN. They should also put it on your tax return as required by the IRS.
3. Cost comparison
Cost is important in nearly everything, isn’t it? It is important to consider the fee charged by your preferred tax preparer. A common way to determine the authenticity of the charged amount is to do a background search across several providers. Also, many tax preparers charge their fees on an hourly basis. Therefore, if you find one charge based on the size of your refund or claiming they can get you a bigger refund, you should treat these as red alerts.
According to the National Society of Accountants, if the IRS is auditing you in person, professionals usually charge $150 per hour to handle it.
4. Look for memberships
If you need to get a reliable tax preparer, you should consider the one registered with a professional organization. The National Association of Tax Professionals, the American Institute of Certified Public Accountants, or the National Association of Enrolled Agents are some of the reputable organizations for tax preparers. Members in these organizations are well-equipped with the latest trends and changes in tax returns. They are also known for high levels of professionalism and adherence to work ethics.
5. Confirm for proper signing
By law, paid preparers are required to sign their clients’ returns and indicate their PTINs. You should never accept a tax return without these crucial requirements from your tax preparer. They could put anything on the document, including their bank account to steal your refund.