Tax Preparation: Points to Ponder

Last updated on January 29, 2023

Many taxpayers use the help of tax preparers to prepare taxes. When seeking help, it is vital to ensure that you are hiring the services of an honest preparer. Tax preparer fraud is one of the most common types of tax fraud in the country.

Even though most tax preparers are honest professionals, taxpayers may encounter unscrupulous tax preparers that try to cheat both taxpayers and the IRS. They use false deductions and credits, and understate income to get large refunds. Often, they try to persuade their clients to commit fraud.

• Taxpayers must not accept proposals from tax preparers that require them to pay the preparer a percentage of their tax refund.
• They must also ensure that the preparer has a Personal Tax Identification Number (PTIN). Without the PTIN, the IRS will not accept the return.
• Taxpayers that prepare and file their tax return just before the deadline are more prone to making mistakes in their return than those who file early. Avoid the last minute rush to file accurately. A significant error can cause the IRS to audit.

Tax preparation must be done carefully and the return re-checked for accuracy. An erroneous tax return may be returned to the taxpayer for amendment, which postpones the refund, if any.