From Internal Revenue Service (IRS) <[email protected]>
Subject Tax Tip 2024-70: Extension filer reminder: Choose a tax preparer carefully
Date August 20, 2024 1:52 PM
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IRS Tax Tips August 20, 2024

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Issue Number: Tax Tip 2024-70
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*Extension filer reminder: Choose a tax preparer carefully*

The deadline for taxpayers who requested an extension to file is Oct. 15, 2024, and some may choose to hire a tax return preparer. Those who do need to understand how to choose a tax preparer wisely [ [link removed] ] and how to work with them.

*What to consider when choosing a tax return preparer*

Taxpayers should keep these things in mind when looking for a tax return preparer.

• *Make sure the preparer is available year-round.* If questions come up about a tax return, taxpayers may need to contact the preparer after the filing season is over.

• *Review the preparer's history.* Taxpayers can check with the Better Business Bureau [ [link removed] ] for information about the preparer, including any disciplinary actions and the license status for credentialed preparers. Other resources include the State Board of Accountancy's website for CPAs and the State Bar Association for attorneys. Taxpayers can also check the IRS Directory of Federal Tax Return Preparers [ [link removed] ] for enrolled agents or verify an enrolled agent's status [ [link removed] ] online.

• *Ask about service fees.* Taxpayers should avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of the refund into their own financial accounts. Be wary of tax return preparers who claim they can get larger refunds than their competitors.

• *Ensure their preparer offers IRS e-file.* The IRS issues most refunds in fewer than 21 days for taxpayers who file electronically and choose direct deposit [ [link removed] ].

• *Understand the preparer's credentials and qualifications.* Attorneys, CPAs and enrolled agents can represent any client before the IRS in any situation. The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications [ [link removed] ] can help identify many preparers by type of credential or qualification. Tax return preparers who participate in the Annual Filing Season Program [ [link removed] ] may represent taxpayers in limited situations if they prepared and signed the tax return.

*Tips for working with a tax preparer*
These are a few things taxpayers should keep in mind when they work with a tax preparer:

• *Good preparers ask to see records and receipts.* They'll also ask questions to determine the client's total income, deductions, tax credits and other items. Taxpayers should avoid a tax return preparer who e-files using pay stubs instead of W-2s. This is against IRS rules.

• *Taxpayers should review the tax return before signing it.* They should ask questions if something is unclear or inaccurate.

• *Any refund should go directly to the taxpayer – not into the preparer's bank account.* Taxpayers should make sure the routing and bank account numbers on the completed return are accurate.

• *Taxpayers are responsible for filing a complete and correct tax return.* They should never sign a blank or incomplete return and never hire a tax return preparer who asks them to do so.

• *Ensure the preparer signs and includes their PTIN.* By law, anyone who is paid to prepare or help prepare federal tax returns must have a valid Preparer Tax Identification Number, and they must sign and use that PTIN on any tax return they prepare. Not doing so is a red flag that the paid preparer may be looking to make a quick profit. Taxpayers should avoid these unethical tax return preparers.

*Report misconduct*
Taxpayers can report tax preparer misconduct to the IRS [ [link removed] ].

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