By now, you know the raw tax numbers – income, business expenses etc. – going into your 2015 return. But how familiar are you with the tax preparer who act on your behalf to send them to Internal Revenue Service and state tax collectors? Let’s take a few minutes for consumer savvy here in the thick of tax time!
Indiana’s Department of Revenue recently suggested five questions your tax preparer ought to be able to answer to your satisfaction. We at EricJohn Ltd. also will answer them with our approach. (Well, after all, this is OUR blog!)
Here’s a starting tip. Before hiring a tax preparer, you might want to check in with the Better Business Bureau or your state’s board of accountancy for any reports of adverse business practices or formal sanctions.
You also might be able to check the preparer’s professional credentials related to tax work. For example, Eric Buechler, the owner of EricJohn Ltd., holds the credential of an enrolled agent (EA), a credential for expertise that is recognized by the IRS.
Here are five questions and answers prompted by Indiana Revenue, followed by EricJohn’s approach (Italic type):
- Q: If I hire you, how can I contact you both in AND out of tax season? A: Find a preparer who will be available throughout the year in case of questions from tax agencies. EricJohn Ltd. is available year-round via email, telephone and Webex meetings online.
- Q: How do you protect my personal information and tax return? A: Paper documents should be kept locked in secure containers and destroyed when no longer needed. Digital data should be encrypted in computer systems used for filing returns. EricJohn Ltd. provides a secure portal and Web “cloud” site for sending and receiving documents. All access to that information and to tax returns is password-protected. In addition, we use anti-virus and malware software, along with restrictions on downloads to flash drives.
- Q: Will I receive a copy of my completed tax return(s)? A: Insist on it from your tax preparer. You need a copy in case of future questions from the IRS or amendments you make to the return. Always have a record. EricJohn Ltd. provides you with an electronic copy via email using a password or a paper copy by regular mail.
- Q: Who will sign my return(s)? A: The tax preparer always should sign the return and include his/her PTIN (tax preparer identification number). You also will sign or authorize your signature electronically, of course. Never sign a blank tax return, even if the tax preparer promises to enter the numbers for your convenience. Owner Eric Buechler signs all returns prepared by EricJohn Ltd.
- Q: How do you charge for preparing returns? What are your service fees? A: Do not hire a tax preparer who charges a fee based on the amount of a refund. “Not only is this practice unethical – it is illegal, too!” Indiana Revenue notes. EricJohn Ltd. bases its fees on the forms being completed. There also may be charges for extra work, such as calculating the tax basis of a stock or researching an unusual tax situation.
There’s still time left in tax season to make a wise move and contact EricJohn Ltd. about your 2015 return!