In the past, I’ve had a “tax professional” do my personal and business taxes. However, lately, I think I may be missing out on some deductions, which could increase my return.
When do I need a CPA to do my taxes?
Avoid unscrupulous tax preparers who include errors or false information on a tax return that could leave you open to liability for unpaid taxes, penalties, and interest.
Here are six frequently asked questions we hear and why we think you should work with a licensed CPA come tax time.
Q: How do I know my taxes are prepared accurately?
There is no recourse for you if your taxes are prepared incorrectly by an unlicensed person or company. Did you know, that to prepare tax returns, a person needs zero training or licensing to prepare tax returns for the public?
Q: What is required for a person to prepare my taxes with the IRS?
Only a small fee paid annually to the IRS is required to e-File returns. Yes, you read that right – zero training is required and a small fee is all it takes to call yourself a “tax professional” and to file your taxes with the IRS.
Q: If my taxes are prepared wrong, my tax preparer is responsible – right?
If your taxes are prepared wrong, there is nothing an unlicensed “tax preparer” is required to do to make things right. An unlicensed person can just walk away while you deal with the fallout from the IRS, including an audit and restating your taxes.
Q: Is there recourse when you work with someone who is unlicensed?
If your taxes are incorrectly prepared by an unlicensed “tax preparer” there is no recourse with any state or federal agency. An unlicensed tax professional can just walk away.
Q: Is my personal information safe?
When you have your taxes prepared, you are entrusting all your sensitive financial information (social security numbers, birth dates, driver’s license, bank information) to someone. There is no requirement for an unlicensed person to keep your data secure.
Q: Is my sensitive tax information securely protected?
There are no rules or laws requiring an unlicensed person to maintain the basic level of computer security to protect your sensitive tax information or files from potential computer hackers.
If you’re concerned about data security, recourse, computer safety, and accountability during tax time, work with a licensed, virtual CPA, like us.
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