What Are the Duties of a Tax Preparer?
A tax preparer is an individual who is hired to prepare personal income taxes to be filed with the Internal Revenue Service. While a tax preparer may be a certified public accountant, it is not a requirement. Additionally, though tax preparers may occasionally be engaged to prepare tax returns for small businesses, this function is typically handled by an accountant due to the many additional tax laws applied to business entities.
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Complete and Review the Tax Return
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The tax preparer completes a client's tax return, inserting all appropriate information and calculating the exact amount of money to be paid to or received from the Internal Revenue Service. A tax preparer must also thoroughly review the completed tax return prior to its being filed with the IRS. Any missing or incorrect information, such as the social security number, may result in a taxpayer's being penalized.
Sign the Tax Return
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All tax preparers who are paid for their services must sign the tax return in the appropriate area. This is required by the Internal Revenue Service.
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Respond to the Needs of Clients
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A good tax preparer should provide exceptional client service. Clients should expect this professional to be able to answer questions regarding financial matters and basic tax law.
Meet State Credentialing Requirements
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In most states, there are no formal educational or credentialing requirements to work as a tax preparer. California and Oregon, however, regulate tax preparers who are compensated by their clients. It is important that professionals within these states research and meet any credentialing requirements so they may work within the law.
Be Honest and Law Abiding
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The falsification of a tax return is a federal offense. Tax preparers must work ethically and within the confines of the law.
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References
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