Who do you trust to prepare your taxes?Tax Photo

The differences between credentialed and non-credentialed tax preparers:

When it comes to something as personal and important as your taxes, who can you trust to make sure your return is done correctly? When choosing your tax preparer, here are a couple of things to consider…

Credentialed:

Credentialed tax preparers include: Attorneys, Certified Public Accountants (CPAs), Enrolled Agents, Enrolled Retirement Plan Agents, Enrolled Actuaries, and Annual Filing Season Program (AFSP) participants. These tax preparers must meet a minimum requirement for continuing education that ranges from 18-40 hrs per year. This requirement keeps these tax preparers knowledgeable in three primary areas; including Federal Tax Law, Federal Tax Update, and most importantly Ethics. If audited by the IRS, a credentialed tax preparer will be able to represent a tax payer and assist in providing the IRS with all necessary information they may require.

Non-Credentialed:

Non-Credentialed tax preparers are not required to take continuing education of any kind. They are also not regulated by any government agencies and are not held to a specific level of Ethics standards. As of December 31, 2015 a non-credentialed tax preparer is unable to represent any client before the IRS for any reason. This means, the tax payer would be forced to either represent themselves before the IRS or hire a tax attorney at an additional expense to the tax payer.

Whether choosing to have a credentialed or non-credentialed tax preparer do your taxes, there are some things you should know:

  • Never sign a blank return
  • Review your return and ask any questions you may have before signing your return.
  • Be sure that your tax preparer signs your return and includes their PTIN (Preparer Tax Identification Number).

Tax Season can be a stressful time of year for most tax payers, but knowing that they have a credentialed tax preparer to assist them can make all the difference.

 

For more information regarding credentialed and non-credentialed tax preparers, please visit https://www.irs.gov/uac/choose-your-tax-preparer-wisely

To locate credentialed tax preparers in your area visit https://irs.treasury.gov/rpo/rpo.jsf to access the IRS Directory of Federal Tax Return Preparers with Credentials.