oklahoma tax articles and resources for business owners, farmers, ranchers, and executives

Choosing A Tax Preparer
By Sandeep
If you pay someone to prepare your tax return, choose that preparer wisely. Taxpayers are legally responsible for what’s on their own tax returns even if prepared by someone else. So, it is important to choose carefully when hiring an individual or firm to prepare personal returns. Most return preparers are professional, honest and provide excellent service to their clients. Here are a few points to keep in mind when someone else prepares your return:

•A Paid Preparer is required by law to sign the return and fill in the preparer areas of the form. The preparer should also include their appropriate identifying number on the return. Although the Preparer signs the return, you are responsible for the accuracy of every item on your return. In addition, the preparer must give you a copy of the return.

•When choosing a tax preparer, avoid anyone who claims she can obtain large refunds for you or who guarantees results. This is not only unlikely; it is also illegal. A tax preparer is also not allowed to charge a contingency fee or to offer to help you file papers with inflated or false deductions.

•Review the completed return to ensure all tax information, your name, address and Social Security

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number(s) are correct. Make sure that none of these spaces is left blank.

•Look for a tax preparer who is accredited and doesn't have any history of complaints filed against him in the Better Business Bureau or the Internal Revenue Service (IRS) Office of Professional Responsibility (OPR). Avoid firms at which secretaries or students prepare taxes. Such services are usually cheaper, but they put you in the hands of someone with little training.

•Review and ensure you understand the entries and are comfortable with the accuracy of the return before you sign.

•Ask any potential tax preparer about service fees beforehand. Make sure you're paying a flat fee that includes all required services and paperwork. Do not agree to payments based on a percentage of returns. This is often a sign of an unscrupulous firm that inflates deductions.

•Choose a tax preparer who is willing to help you with any concerns you may have. Make sure she can answer your questions both during and after filing. If you're unsure about the professionalism of a tax preparer, ask for references from past clients.

•If you have provided specific authorization in a power of attorney filed with the IRS, you may have copies of notices or refund checks mailed to your preparer or representative; but only you can sign and cash your refund check. For further information on Powers of Attorney.

•A Third Party Authorization Check Box on Form 1040 allows you to designate your Paid Preparer to speak to the IRS concerning how your return was prepared, payment and refund issues and mathematical errors.

A tax preparer can charge anything from 2000 Rs. for a simple filing to 10,000 Rs for an itemized return. If you want somebody more qualified, choose a tax preparer who is also a certified public (CPA) or an enrolled agent, both of which specialize in taxes and may be better able to handle complicated deductions. Keep in mind that professionals in large cities are usually more expensive.

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One who is skilled at keeping business records. Usually, a highly trained professional rather than one who keeps books. An accoun­tant can set up the books needed for a business to operate and help the owner understand them.