Episode 16: In this episode, Timalyn shares her perspective on the question, "How to Choose a Tax Professional." Entrusting someone to help you with taxes is an important decision you should make with careful consideration. This is even more vital when you have back tax issues.
Timalyn begins with 2 disclaimers. First, she hasn't been able to get to the podcast studio, so you may notice a slight difference in the audio quality. Second, Timalyn is recording this particular episode specifically for you; not for her own benefit. Timalyn no longer accepts tax preparation clients. This episode aligns with her mission to fill the tax literacy gap, one taxpayer at a time.
Taxes are getting more complicated. Your family and friends may also be able to benefit from the objective information, so please share this episode with them. In the meantime, make sure you take notes while listening to this episode.
Choosing a Tax Professional
Begin looking for a new tax professional now. Don't wait until January. Now is the perfect time to begin the search and decision process. Remember, really good tax professionals are going to be extremely busy working with their current clients. It may be difficult for them to schedule time to discuss your specific situation once tax season begins.
Make Sure the Tax Professional You Consider has a PTIN
Beware of scam artists and those who may be less than prepared to handle your taxes. You want to verify that your tax professional is able to sign the returns they prepare for you. Timalyn explains that a PTIN is a Preparer Tax Identification Number. The IRS requires anyone preparing tax returns, for compensation, to have a PTIN. You can verify the professional you are looking to work with has a PTIN by looking in the PTIN directory.
The PTIN gives the IRS the ability to track a lot of information about the person preparing your taxes. If they are doing so without a PTIN, consider it a red flag. The IRS has a page on its website to help you. The Directory of Federal Tax Preparers with Credentials and Select Qualifications is a reliable resource.
IRS Credentials
The IRS issues various credentials for those who prepare Federal tax returns. Here is a general overview of those credentials:
Timalyn also discusses the importance of choosing a tax professional with experience. She explains that it's not always about the credentials. Experience is a valuable teacher. This is especially important when you consider the niche he/she has developed. This could be a significant benefit for your specific situation.
Another resource Timalyn shares is CPAVerify.org. This free, online resource is a quick way to confirm the credentials of a CPA. Keep in mind, just because they are a CPA does not mean they have a PTIN and are authorized to prepare tax returns.
The Ripple Effect of Not Doing Your Research
Yes, Timalyn has built a solid business focused on providing tax relief for people who owe back taxes to the IRS. However, she doesn't want you to become her client, because you mistakenly hired someone who wasn't qualified to prepare your tax returns. Tax season will be here before you know it. Start researching tax professionals to work with for the next tax season.
Make Sure Your Preparer is E-Filing
This is another red flag. If a tax professional is submitting a certain number of tax returns, the IRS requires them to e-file those returns. Tax returns that are paper filed are still taking much too long to process, especially while we are still dealing with the impacts of the pandemic. E-filing is simply a more efficient way to get your returns filed and processed.
If your tax preparer is urging you to mail in your returns, start asking questions. You'll want to know the specific reasons for this advice.
Timalyn comments that when a tax preparer makes you mail in your returns, it may be to enable the fraudulent preparer to disappear, before the problems are detected. Please understand that there may be valid reasons, but in this day and age, e-filing is the preferred method.
If you owe taxes, it may not be because your tax preparer did something wrong. You may need to adjust your W-4 withholdings. You can find out how to do that by checking out Tax Tips with Timalyn or watching the YouTube video for couples married filing jointly.
When you e-file your returns, you'll be notified that your return was either accepted or rejected. You'll know what issue or issues need to be resolved. You'll be able to begin addressing those issues with your tax professional.
As we conclude Episode 16, we encourage you to connect with Timalyn on social media. You'll be able to subscribe to this podcast on Spotify, Apple Podcasts, Google Podcasts, and many other podcast platforms.
Remember, Timalyn Bowens is America's Favorite EA and she's here to fill the tax literacy gap, one taxpayer at a time. Thanks for listening to today's episode.
For more information about tax relief options, visit https://www.americasfavoriteea.com/ .
If you have any feedback, or suggestions for an upcoming episode topic, please submit them here: https://www.americasfavoriteea.com/contact.
Disclaimer: This podcast is for informational and educational purposes only. It provides a framework and possible solutions for solving your tax problems, but it is not legally binding. Please consult your tax professional regarding your specific tax situation.
