Tag Archives: Tax Preparer

Tips to help taxpayers choose a reputable tax return preparer

December 14, 2021

As taxpayers get ready to file their 2022 tax return, they may be considering hiring a tax return preparer. The IRS reminds taxpayers to choose a tax return preparer wisely. This is important because taxpayers are responsible for all the information on their return, no matter who prepares it for them.
There are different kinds of tax preparers, and a taxpayer’s needs will help determine which kind of preparer is best for them. With that in mind, here are some quick tips to help people choose a preparer.

When choosing a tax professional, taxpayers should:

  • Check the IRS Directory of Preparers. While it is not a complete listing of tax return preparers, it does include those who are enrolled agents, CPAs and attorneys, as well as those who participate in the Annual Filing Season Program.
  • Check the preparer’s history with the Better Business Bureau. Taxpayers can verify an enrolled agent’s status on IRS.gov.
  • Ask about 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 their refund into their financial accounts.
  • Be wary of tax return preparers who claim they can get larger refunds than others.
  • Ask if they plan to use e-file.
  • Make sure the preparer is available. People should consider whether the individual or firm will be around for months or years after filing the return. Taxpayers should do this because they might need the preparer to answer questions about the preparation of the tax return.
  • Ensure the preparer signs and includes their preparer tax identification number. Paid tax return preparers must have a PTIN to prepare tax returns.
  • Check the person’s credentials. Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in tax matters. Other tax return preparers who participate in the IRS Annual Filing Season Program have limited practice rights to represent taxpayers during audits of returns they prepared.

Liberty Tax franchises closed by IRS due to alleged fraud

November 5, 2016

Liberty tax outlets across the country have suffered a string of setbacks in the past few months.  Federal authorities allege fraudulent tax returns were generated at several locations.  Most recently, three local Liberty Tax franchise stores were shut down by federal authorities and the operator of the franchise was permanently barred from preparing tax returns.

But that is not the end of the story.  Apparently, as part of a court ordered injunction, the franchise operator will have to provide to the IRS a list of all of its customers.  We don’t think the IRS wants that information so it can update their holiday greeting card list.  We suspect that many of those on the list can expect some type of inquiry/audit from tax authorities in the near future.  And here’s a pro tip, there is no statute of limitations on tax fraud.  Normally, if you have been reasonably accurate in filing your tax return you can assume that the IRS cannot and will not challenge your return after 3 years.  But not so if you have filed a fraudulent return, or had one filed on your behalf. The IRS can come after you at any time in the future with no deadline or time limit.  Ouch!

Even if you consider yourself a victim of unscrupulous tax return preparers and you had no idea there was anything wrong, you are ultimately responsible for everything on your tax return.  You may be babe in the woods innocent, but that will not change your tax liability.  You will be responsible for all of the taxes the IRS believes you owe.  The good news is you may be able to convince the IRS to relieve you of some of the quite substantial penalties that may apply.

If you find that you need assistance in responding to a letter or audit from a state or federal taxing authority, whether due to the recent Liberty Tax troubles or not, please let us see how we can help you.  We’ll give you an honest assessment of your situation and provide you with several steps to take to help mitigate the damage, all for no cost or obligation.  If, however, you would like our assistance in responding to the letter or audit, Tax On Wheels,LLC is here to help.  We will offer you a fair price, to help resolve your tax issues.  Frequently we find that our prices are significantly lower than many of our competitors to obtain the exact same results.

Tax On Wheels, LLC can be reached at 803 732-4288 or toll free at 877 439-3514.  Our email address is taxonwheels@att.net.

IRS Launches Directory of Federal Tax Return Preparers

February 5, 2015

WASHINGTON—The Internal Revenue Service today announced the launch of a new, online public directory of tax return preparers. This searchable directory on IRS.gov will help taxpayers find a tax professional with credentials and select qualifications to help them prepare their tax returns.

“This new directory will be a practical tool for the millions of Americans who rely on the services of a paid return preparer,” said IRS Commissioner John Koskinen. “Taxpayers can also look to these tax professionals for help if they have questions about the new health care provisions on this year’s tax forms.”

The directory is a searchable, sortable listing featuring:  the name, city, state and zip code of attorneys, CPAs, enrolled agents and those who have completed the requirements for the voluntary IRS Annual Filing Season Program (AFSP). All preparers listed also have valid 2015 Preparer Tax Identification Numbers (PTIN).

Taxpayers may search the directory using the preferred credentials or qualifications they seek in a preparer, or by a preparer’s location, including professionals who practice abroad. Tax return preparers with PTINs who are not attorneys, CPAs, enrolled agents or AFSP participants are not included in the directory, nor are volunteer tax return preparers who offer free services.

The directory can also be a resource for taxpayers who may want to get help from tax professionals on the Affordable Care Act tax provisions that affect returns filed this year.

The vast majority of people will only have to check a box on their federal income tax returns to indicate they had health coverage. Others may have Marketplace coverage with tax credits, have exemptions or need them, or may have to make a payment because they could afford to buy health insurance but chose not to.

The IRS provides extensive information on IRS.gov/aca to help taxpayers better understand the details of the new health care law. Many tax professionals, including those listed on the new directory, will be able to help taxpayers understand these changes.

More than 140 million individual tax returns were filed last year, and more than half of them were prepared with the help of a paid return preparer. To help taxpayers navigate the different types of professional tax help available, last December, the IRS unveiled IRS.gov/chooseataxpro, a page that explains the different categories of professionals. Taxpayers can also use a new partner page available on IRS.gov that provides links to the web sites of national non-profit tax professional groups, which can help provide additional information for taxpayers seeking the right type of qualified help.

The IRS also offers free tax return preparation for eligible taxpayers. But whether using a paid tax professional, relying on the help of a volunteer or preparing their own returns, taxpayers should consider preparing and filing their returns electronically. Electronic filing is the easiest way to file a complete and accurate tax return. There are a variety of electronic filing options, including IRS Free File for qualified taxpayers, commercial software and professional assistance.

In 2010, the IRS launched the Tax Return Preparer Initiative that generally requires anyone who prepares federal tax returns for compensation to obtain a PTIN from the IRS. As of the start of the filing season, more than 666,000 tax return preparers have active PTINs for 2015. Currently, anyone with a valid PTIN can prepare federal tax returns for compensation. At a minimum, taxpayers should make sure their tax preparer has a valid PTIN and includes it on the tax return.

Yes, Tax On Wheels, LLC requires all preparers to be listed or eligible to be listed in the directory.  Please give us a call at 803 732-4288 if you have any questions.

How to Get IRS Forms and Publications

The Internal Revenue Service provides free tax forms and publications on a wide variety of topics – from tax credits for individuals to a tax guide for small businesses.

Here are four easy ways to obtain tax forms and publications from the IRS:

1. On the Internet.  You can get IRS forms and instructions quickly and easily by visiting the IRS.gov website 24 hours a day 7 days a week. They often appear online before they are available on paper. To view and download tax products, select “Forms and Pubs.”

2. By Telephone.  Call 1-800-TAX-FORM (800-829-3676) Monday through Friday, 7:00 a.m. to 7:00 p.m. local time to order current or prior year forms and instructions or IRS publications. Hours of service in Alaska and Hawaii follow Pacific Time. You will receive your order by mail, usually within 7 to 10 days.

3. In IRS Taxpayer Assistance Centers.  There are Taxpayer Assistance Centers located across the country where you can pick up many IRS forms and publications. IRS offices also offer face-to-face help for taxpayers who want personal tax assistance.

To find the Center nearest to you, visit IRS.gov and click on “Help & Resources” and then “Contact Your Local IRS Office.” Select your state for a list of offices, as well as a list of services available at each office. You can also find a Center near you by using the “Office Locator” link, which allows you to search by using your zip code.

4. In Your Community.  Many libraries and post offices offer free tax forms during the tax filing season. Some libraries also have copies of commonly requested IRS publications.

You may also obtain official state and federal tax forms and publications by clicking on the “Resources” link at the top of the page.

Tax On Wheels, LLC endeavors to empower consumers with the knowledge and skills to understand and manage their own tax affairs; that’s why we post this information to the web.  However, not everyone is built to handle their own tax affairs; that’s why we are here.  If after taking a look at those forms you decide that you would rather have some assistance with your tax obligations please give feel free to give us a call at 803 732-4288 to see if we can help you.

Like mushrooms after a spring rain

On Friday January 18, 2013, the US District Court for the district of Columbia, struck down the position that the IRS has the authority to regulate tax preparers.

What this apparently means is that the IRS will not be able to regulate practice before the IRS by so called unenrolled preparers (anyone who is not a CPA, Enrolled Agent or Attorney).   Unless the IRS appeals the decision and prevails or finds some alternative method of regulating the preparation of tax returns we should probably prepare ourselves for the return of the crooks.

It hasn’t been that long ago that we had the proliferation of fly by night tax return places popping up like mushrooms after a spring rain anywhere a sufficient quantity suckers could be found.  When tax season was over they were gone and any problems were the sole responsibility of the tax payer who was left holding the bag.

Many of us in the tax preparation industry had hoped that this industry could be infused with more professionalism and we were glad to see the IRS implementing the fairly limited requirements upon anyone who held themselves out to be tax preparers.  Everyone here at Tax On Wheels, LLC  still hopes the IRS will be able to bring some order and sanity to this process.  But in the mean time the public should probably be prepared for any idiot who can get their hands on a copy of TurboTax  to set up shop in a strip mall near you.  Let the buyer beware!

You may contact Tax On Wheels, LLC at 803 732-4288 if you have questions about this post.