| Tax Topic #254 |
2008 Tax Year |
Topic 254 - How to Choose a Paid Tax Preparer
If you pay someone to prepare your tax return, choose
that preparer wisely. A person who prepares tax returns for others should
have a good understanding of tax matters. Two states (California and Oregon)
currently require paid preparers to have a license or registration. If your
state does not have a license or registration requirement, you may want to
check with friends, co-workers, or your employer for help in selecting a "reputable"
preparer. Choose a preparer you will be able to contact in case your return
is examined by the IRS and there are questions regarding how your return was
prepared.
Beware of a preparer who guarantees you a refund before getting your financial
information or who claims to have a "special" relationship with the IRS.
A paid preparer is required, by law, to sign the return and fill in the
preparer area of the form. Although the preparer signs the return, you are
responsible for the accuracy of every item on your return. Unscrupulous tax
return preparers do exist and can cause considerable financial and legal problems
for their clients by filing false income tax returns. Carefully review the
completed return before you sign it to be sure all tax
information, including your name, address, and social security number(s) is
correct. In addition, the preparer must give you a copy
of the return. Never sign a blank return, and never sign
in pencil! If you have provided specific authorization in a power of attorney
filed with the IRS, you may have copies of notices or your refund check mailed
to your preparer or representative; but only you can sign and cash your refund
check. For further information on Power of Attorney, refer to Topic 311.
A new Third Party Authorization Check Box on Form 1040 (PDF), Form 1040A (PDF), and Form 1040EZ (PDF) allows you to designate your paid preparer to speak to the IRS
concerning the preparation of your return, payment and refund issues, and
mathematical errors.
For tax years 2003 and subsequent, the Third Party Authorization Check
Box gives the designated party the authority of Form 8821 (PDF), Tax Information Authorization for one year from the
due date of your return. Please see Topic 312 for information on
Form 8821.
Page Last Reviewed or Updated: December 22, 2008
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