According to the Internal Revenue Service – IRS, there were more than 152 million taxpayers who opted for electronic filing by December 2022. There was a very similar figure in 2021. As there were less than 166 million tax returns filed in total, there are many more Americans who opt for the online option rather than the paper one. There are so many possibilities to help you do it online, that most people find it easier to do so. People still hire the services of tax preparers frequently. Despite the fact that there is more software to do it on your own, they still do so.
However, younger generations are more likely to file electronically while using some kind of software to sort it out. Some people prefer to pay and get some help from a tax preparer instead of making mistakes that could be costly. Others prefer to hire a tax preparer as they get rid of stress. The IRS keeps warning taxpayers of the threats of tax preparers’ fraud. Unfortunately, there might be some tax preparers that may make up deductions or credits that you are not eligible for. In this way, you will get a higher check but illegally. Inflated tax returns are something to avoid.
What are the consequences of a false tax return according to the IRS?
The IRS informs citizens that even if they ignore the false deductions, credits, or exemptions, they are responsible for paying the additional taxes. Of course, apart from paying the interest and additional taxes, you may have to face penalties. So, make sure there is no false information in your tax return because the preparer will not have to pay taxes, interest, and penalties. Obviously, these criminal tax preparers will be investigated by the Department of Justice. No doubt there are very few tax preparers that act this way. Most of them give excellent service to taxpayers.
Choosing correctly the tax preparer is just the same as making up your mind about any other specialist. It does not matter if it is a doctor, architect, or lawyer. Even if someone else prepares your tax return, you are responsible because you sign and agree to it says the IRS. All the information that is on your tax return must be accurate because you are accountable for it. So, it is advisable to follow some tips to prevent things like these from happening. It is in fact the best way to dodge unpleasant surprises.
These are the hints when you have to choose a tax return preparer
In fact, the IRS wants taxpayers to be careful of tax preparers who boast they can get the largest tax refund check. It is not about the largest amount, but about the most accurate return. It is not advisable to hire tax preparers that charge a fee depending on the amount of your tax return. The IRS suggests hiring a reputable one. A person that signs your tax return and gives you a copy of it. Another thing to bear in mind is to check availability and accessibility. Will this person be around shortly and in the long run to help you if necessary?
Apart from the aforementioned, the IRS suggests checking your return before signing is essential. Ask all you do not understand or agree with. Never sign a black tax form, it could be really dangerous. Have a look at this person’s credentials. Have a look at the professional organization this person may be affiliated with to keep up with new laws and changes. Read their code of ethics as well. Tax evasion can have severe punishment. Avoid the $250,000 fine and the five years of prison.