Do you want to know what are the obligations of your accountant who is preparing and filing your income tax returns?
You do not need to be an expert or follow some IRS guidelines when you are filing your income tax return yourself. However, if you are filing taxes for others as a paid tax preparer, you have certain obligations to follow, failing which the IRS may disqualify you and restrict you from filing any tax returns on behalf of your clients. In certain circumstances, you may face some charges including convictions.
First thing first you need to register yourself as a paid tax preparer with IRS before you can prepare and file a tax return on behalf of your clients. You need to renew your registration every year and pass some screening tests implemented by the IRS.
In the United States, paid tax preparers have several obligations to their clients and to the Internal Revenue Service (IRS). Here are some of the key obligations of paid tax preparers in the US:
In addition, paid tax preparers who prepare more than 10 federal tax returns in a calendar year are required to e-file those returns unless they have received a waiver from the IRS.
Failure to meet these obligations can result in penalties, fines, and even criminal charges. It’s important for paid tax preparers in the US to understand their responsibilities and take them seriously to avoid any negative consequences for themselves or their clients.
Disclaimer: Information in the blog/post/article has been presented for a broad and simple understanding. This is not legal advice. RKB Accounting & Tax Services does not accept any liability for its application in any real situations. You need to contact your accountant or us for further information.