CARL WATTS & ASSOCIATES

February 23, 2015

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Tax Preparers
and the IRS
With every newsletter we urge you to enroll help from a tax professional not just for your tax returns, but in all your dealings with the IRS. We have dedicated several newsletters to similar subjects to help you choose a tax professional and to explain the different kinds of tax professionals or tax preparers out there, with differing levels of skills, education and expertise.

Finding the right tax preparer is very important, whether that means a higher qualification or just the suitable desk manners and temperament.

The IRS is aware of this as well, since almost 60% of taxpayers hire a professional when it’s time to file a tax return.

Anyone can be a paid tax return preparer as long as they have an IRS Preparer Tax Identification Number (PTIN) and they sign and enter it on all returns they prepare.

On February 10, 2015, the IRS has launched a new, online public directory of tax return preparers, a tool you can use to help you select a tax return preparer with the credentials and qualifications that you prefer.

The new Directory of Federal Tax Return Preparers with Credentials and Select Qualifications lists enrolled agents, attorneys, CPAs, and those who have completed the requirements for the voluntary IRS Annual Filing Season Program. All preparers listed have a valid Preparer Tax Identification Number, or PTIN, for 2015.

The directory does not include tax return preparers with PTINs who are not attorneys, CPAs, enrolled agents or Annual Filing Season Program participants. Volunteer tax return preparers who offer free services are also not included.

You may search the directory using the preferred credentials or qualifications you seek in a preparer. You may also search by a preparer’s location, including those who practice abroad.


Directory listings feature the name, city, state and zip code of included tax preparers.

Most importantly, when you choose your tax preparer, remember that although you’re still legally responsible for what is on your tax return, the tax return preparer is trusted with your most personal information. They know your and your family Social Security numbers, all of the sensitive details of your financial life, your marriage, your business. That’s why you need to choose that person wisely. To do that, take some time to consider a few essential guidelines that are recommended by the IRS as well.

  • Check to be sure the preparer has an IRS Preparer Tax Identification Number (PTIN). Anyone with a valid 2015 PTIN is authorized to prepare federal tax returns. Tax return preparers, however, have differing levels of skills, education and expertise. An important difference in the types of practitioners is “representation rights”.
  • Ask the tax preparer if they have a professional credential (enrolled agent, certified public accountant, or attorney), belong to a professional organization or attend continuing education classes. A competent tax professional needs to be up-to-date with all the tax law changes. Tax return preparers aren’t required to have a professional credential, but make sure you understand the qualifications of the preparer you select.

  • Check on the service fees upfront. Avoid preparers who base their fee on a percentage of your refund or those who say they can get larger refunds than others can.
  • Always make sure any refund due is sent to you or deposited into your bank account. Taxpayers should not deposit their refund into a preparer’s bank account.
  • Make sure the preparer will be available. Make sure you’ll be able to contact the tax preparer after you file your return – even after the April 15 due date. This may be helpful in the event questions come up about your tax return.
  • Provide records and receipts. Good preparers will ask to see your records and receipts. They’ll ask you questions to determine your total income, deductions, tax credits and other items. Do not rely on a preparer who is willing to e-file your return using your last pay stub instead of your Form W-2. This is against IRS e-file rules.
  • Never sign a blank return. Don’t use a tax preparer that asks you to sign an incomplete or blank tax form.
  • Review your return before signing and ask questions if something is not clear. Make sure you’re comfortable with the accuracy of the return before you sign it.

  • Ensure the preparer signs and includes their PTIN. Paid preparers must sign returns and include their PTIN as required by law. The preparer must also give you a copy of the return.

  • Report abusive tax preparers to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If you suspect a return preparer filed or changed the return without your consent, you should also file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit.



With the recent surge of all sort of tax scams, you need to be extra vigilant in your choice of a tax professional. Even though most tax return preparers are professional, honest and provide good service to their clients, unscrupulous tax return preparers do exist and can cause considerable financial and legal problems for their clients by filing false or fraudulent income tax returns.

Choose wisely, be safe, and come back to our website for more news and useful information. And remember that we are here to help you in any way we can.

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