Requirement With The IRS
With the filing season approaching, national tax organizations to provide people with new options to get information and tips on selecting tax professionals and avoiding unscrupulous preparers.
More than 140 million tax returns were filed last year, and more than half of with them were prepared with the help of a paid return preparer.
For the upcoming filing season, some taxpayers may want to get help with the new provisions of the Affordable Care Act, and tax professionals provide one of several options available. The vast majority of people will only have to check a box on their federal income tax return to indicate they had health coverage, but others have Marketplace coverage with tax credits, have exemptions or need them, or may have to make a payment because they could afford to buy health insurance but chose not to. Tax professionals will be able to help guide taxpayers through what they need to do in these circumstances. Commercial software programs will be able to help, too.
There are some basic tips taxpayers can keep in mind when selecting a tax professional. These include:
- Select an ethical preparer. Taxpayers entrust some of their most vital personal data with the person preparing their tax return, including income, investments and Social Security numbers.
- Make sure the preparer signs the return and includes their Preparer Tax Identification Number (PTIN). All paid prepares are required to have a valid PTIN.
- Review your tax return and ask questions before signing. The taxpayer is ultimately legally responsible for what´s on their tax return, regardless of whether someone else prepared it.
- Never sign a blank tax return. This is a clear red flag when a taxpayer is asked to sign a blank tax return. The preparer can put anything they want on the return even their own bank account for the tax refund.
"Tax professionals are a vital link with American taxpayers, and without them we could not run the nation´s tax system," Koskinen said. "Taxpayers have many options for their taxes, ranging from using software to selecting a tax professional. If someone needs professional assistance, I urge people to take a few minutes to review the tips at IRS.gov/chooseataxpro. We want taxpayers to understand the different types and categories of tax return preparers available to help them with their tax issues."
In 2010, launched the Tax Return Preparer Initiative that requires anyone who prepares any federal tax return for compensation to obtain a PTIN. In 2014 about 677,000 PTINs were issued. Currently, anyone with a valid PTIN can prepare and sign federal tax returns they prepare.