In its third in a series of weekly tax preparedness releases, the IRS has encouraged taxpayers to carefully
choose a return preparer before the next filing season. The IRS reminded taxpayers that choosing a return
preparer now will give them more time to consider options before the start of the 2016 filing season.
The tips offered by the IRS when choosing return preparers include: (1) selecting an ethical preparer; (2) asking
about service fees and avoid preparers who base their fee on a percentage of the refund; (3) using preparers
with a current preparer tax identification number (PTIN); (4) researching the preparer’s history to check for any
questionable history; (5) asking preparers if they offer e-file; (6) giving the preparers records and receipts and
make sure to provide Form W-2 instead of the final pay stub; (7) making sure preparers are available to be
contacted after the filing due date; (8) reviewing the return before signing; (9) never signing a blank return; and
(10) making sure the preparer signs the return and includes his or her PTIN, and also gives the taxpayer a copy
of the return.
The IRS has launched a public directory of federal tax return preparers to help taxpayers verify the qualifications
of tax professionals. The online directory is a searchable, sortable database with the name, city, state and
zip code of return preparers, including those who have completed the requirements for the IRS Annual Filing
Season Program (AFSP). Any tax professional with an IRS PTIN is authorized to prepare federal tax returns,
however, an important difference in the types of practitioners is “representation rights.”
While enrolled agents, certified public accountants and attorneys have unlimited representation rights before the
IRS, preparers without one of these credentials, also known as unenrolled preparers, have limited practice rights,
the IRS explained. Effective for tax returns and claims for refunds prepared and signed after December 31, 2015,
the limited right to represent clients before the IRS held by noncredentialed preparers will be accorded to only
those preparers participating in the AFSP (IR-2015-123; TAXDAY, 2015/10/30, I.1)
Directory of Federal Tax Return Preparers with Credentials and Select Qualifications – http://irs.treasury.gov/rpo/rpo.jsf