Tips from the Internal Revenue Service and the State of California Franchise Tax Board On “How to choose a Tax Professional “

“When you find yourself in times of trouble....”

Make Informed Decisions

Before you select a tax preparer or tax preparation services:

• Check the tax preparer’s credentials to ensure the tax preparer meets your specific needs.
• Review the tax preparer’s history with these various licensing authorities:
  • California Board of Accountancy for certified public accountants (CPAs) and public accountants (PAs).
  • California Tax Education Council (CTEC) for CTEC-registered tax preparers (CRTPs).
  • Internal Revenue Service (IRS) Return Preparer Office of Enrollment for enrolled agents (EAs).
  • The State Bar of California for attorneys.
• Determine who will prepare your tax return before you contract for the service. Avoid tax preparers who delegate work to someone with less experience or knowledge.
• Ask if the tax preparer has a professional organization affiliation. The organization should provide or require its members to obtain continuing education and require them to adhere to an ethics code.
• Avoid tax preparers who guarantee a larger refund than other tax preparers. Given the same information, any qualified tax preparer should arrive at similar numbers.
• Select a tax preparer who can assist you if the IRS or the Franchise Tax Board (FTB) contact you or audit your tax return.
• Understand your tax return. A good tax preparer should clearly answer any questions about your tax return.
• Review all information before you sign your tax return: name, address, social security numbers, or other tax identification numbers.
• e-file and request a direct deposit refund. You generally receive your refund within 10 days.
• Understand the fees and interest rates tax preparers may charge on Refund Anticipation Loans (RALs).

Preparer Tax Identification Number Requirement:

All paid tax return preparers are required to obtain a Preparer Tax Identification Number (PTIN) from the IRS and renew it annually.

Go to irs.gov and search for choose a tax professional for additional information.

Avoid a tax preparer who:

• Does not provide you a copy of your tax return.
• Does not exercise due diligence in tax return preparation.
• Charges unconscionable tax return preparation fees.
• Asks you to sign a blank tax return, or sign a tax return in pencil.
• Does not provide a PTIN on your tax return.
• Refuses to sign your tax return or complete the required tax preparer information.
• Is not properly registered or licensed, including new IRS regulations.

For more information click here: https://www.ftb.ca.gov/forms/misc/982.shtml

For organizations that can help you choose one click here: 

https://www.ftb.ca.gov/individuals/help.shtml

Or contact me at: steve@stevesimsea.com