

Who does your business’s taxes? Perhaps you still do them yourself. Maybe you use the services of a relative who happens to be an accountant.
A tax preparer for a small business is more than just a numbers cruncher—he or she should be a specialized advisor. A good tax preparer will not only prepare and file your taxes, but also display a thorough understanding of your industry, offer you advice on how to make the most of your tax deductions, and explain how different legal structures for your business can help you save money.
A licensed attorney, a certified public accountant, or an enrolled agent are all qualified to do tax preparation. Some states have licensing requirements for anyone who prepares tax returns for a fee; some have them for fee-based preparation of state tax returns only.
As far as preparers of federal tax returns, the IRS requires enrolled agents, CPAs, and attorneys to have a Preparer Tax Identification Number (PTIN). This is an identification number that all paid tax return preparers must use on U.S. federal tax returns or claims for tax refunds submitted to the IRS.
To find a qualified tax preparer, start by asking local business owners who do their taxes and if they’re satisfied with the person. Make sure to ask for suggestions of tax preparers with experience in your industry, if possible. Before meeting with any candidates, the IRS suggests you understand the requirements for a tax return preparer, including credentials and qualifications. Make sure you know what tests they take, how often they need to take courses to refresh their education, and what practice rights are allowed.
After you’ve narrowed down your list of possibilities, ask the candidates for references and check them. Talk to several references to determine if there are any concerns, such as whether the person is hard to get in touch with or has any personality traits that could cause conflicts. Also, check online reviews such as those on Yelp to see if any glaring criticisms stand out.
Finally, once your taxes are completed, review your return before signing it, making sure the preparer has included his or her PTIN number on your return. Never sign a blank tax form. Any tax preparer that asks you to do so should not be rehired.
More than 140 million people file taxes in the U.S. each year, and more than half use a professional tax preparer. These consumers are served each year at Liberty Tax locations across the country – and our numbers are growing. Opening a tax franchise doesn’t require tax expertise. Liberty’s proven system provides the tools and makes the tax business a great business opportunity. Since 1997, Liberty Tax has grown to more than 4,300 offices in the United States and Canada. Find out more about the Liberty Tax opportunity at LibertyTaxFranchise.com.
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