Things to Consider when Preparing Tax Payments

Author: lenoramorgan | Posted: 09.02.2012

Preparing your taxes at the end of every year is something you, as a tax payer, cannot afford to neglect. It is the process of preparing taxes as a way to update your status as a taxpayer during a certain period. Although taxpayers themselves can carry out the preparation, many people prefer to hire professionals who can carry out the preparation for them. Selecting a tax preparer can be just as simple as meeting a new friend whom you can rely upon if you observe these simple dos and don'ts.

Do explore all your options first. Are you quite sure you need to hire someone to prepare your taxes? Taxpayers have a lot of other choices available when it pertains to tax preparation. You may need to compare the price of using tax preparation software with the cost of hiring a certified tax preparer. If you choose to hire a preparer, it is strongly recommended to be smart when choosing a tax preparer.

Verify your tax payer's qualifications. Before you hire a tax preparer, take time to check on his/her qualifications. This does not make you a suspicious person, but rather a smart taxpayer. Verify if the preparer is allowed to perform tax preparation procedures and is a member of a distinguished institution that oversees its members through continuous education and a code of ethics. You could also look into his/her work history to see if any cases have been filed against the preparer.

Do make sure your tax preparer signs the pertinent forms and affixes their PTTN. Certified tax preparers including lawyers and CPA Sacramento residents can count on are required to sign tax forms that they have handled. They should also include their practitioner tax identification number (PTTN) for accountability purposes. Before submitting your tax returns, make sure to verify the PTTN indicated by your preparer.

Don't hastily acknowledge any tax form. This is one of the usual mistakes you cannot afford to commit during tax preparations. A sensible Sacramento CPA who is licensed to complete tax preparations will not force you to sign any forms without giving you the chance to study them. You are answerable for the reliability of every item written on your tax forms, so it is strongly advised to check each form before signing it. The same thing goes with setting one's hand to blank tax returns.

Do provide all the documents required for the preparation. The success of tax preparation Sacramento preparers have to offer lies in the papers provided by the taxpayer. Trustworthy preparers in Sacramento will request for copies of all necessary documents such as records and receipts. They may also ask you a series of questions to determine your qualifications as a tax payer.

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