Super Bowl Tax Time!

Here are the TAX MAN’s top 5 tips for choosing a tax preparer/advisor.

1. Make sure they have a PTIN (Preparer Tax Identification Number)

The IRS requires anyone who prepares or assists in preparing federal tax returns for compensation to have a PTIN. Note the phrase “for compensation”. Make sure your income tax preparer puts his or her PTIN number on your return — the IRS requires that, too.

2. Check credentials

Make sure to get a credentialed preparer.

They can be a someone who’s also a CPA, certified public accountant, licensed attorney or

EA (enrolled agent). They could be certified via a state or local agency such as CTEC (California Tax Education Council). Agencies such as this ensure a preparer has met the yearly continuing education requirements and who has completed the IRS’s Annual Filing Season program. Tax preparers/advisors with such credential can be found in the IRS directory.

3. Compare Tax preparer/advisors’ fees

Tax preparation fees can either be a minimum fee, plus cost based on the complexity of your return, or a set fee for each form and schedule needed in your return. Stay away from any preparer that bases their fees on the size of the refund. This is a BIG RED FLAG! Fee can average from as low as $150 to $700 or more depending on the complexity of the return. Compare pricing to make sure the prepare fits in your budget.

4. Signature Required

Make sure the prepare/advisor will sing on the dotted line. The law requires paid preparers to sign their clients’ returns and provide their PTINs. Never sign a blank tax return, the preparer could put anything on the return, including their own bank account number so they can steal your refund.

5. Does the preparer/advisor have your back

Availability is also crucial. Even after the filing season is over and your tax return is history, you want a tax preparer who will take your call, respond to your email, or just welcomes hearing from you more than just once a year. Although only Enrolled agents, CPAs and attorneys with PTINs can represent you in front of the IRS on audits, payments, and collection issues, and appeals. Preparers who complete the Annual Filing Season Program can represent clients only in limited circumstances. It is important to know even if your preparer cannot directly represent you, they will be around to assist you, in connecting with someone who can represent you if needed or just the navigation of dealing with the IRS.

Here at AM Income Tax, we take these top 5 tips very seriously, and make sure each of our clients are well aware we meet or exceed all 5. We pride ourselves on this and providing our signature “FAMILY STYLE CUSTOMER SERVICE”.