1. They may no longer be a tax expert
Before they become certified advisors, they need a proper background and to go through a series of expertise. The recent changes in the tax code, have drastically changed the rules for them.
The old rules may no longer apply, as they need to get accustomed to the new ones. Understanding new laws and new taxing strategies can be difficult, and challenging.
We don’t want to worry you, and it may not even be the case for your preparer, but just keep this in mind.
2. Their mistake can cost you dearly
Just because they are professionals, it doesn’t make them less than human. If they happen to make mistakes when they do your taxes the following things can happen: additional taxes owed, penalties or interest.
If the fault is truly theirs, it’s 100% their responsibility to fix it, but make sure you carefully read what’s in the contract that you sign with them, and see what obligations each part has. You don’t want to wake up with any surprises.
Normally, if any errors occur you would have to pay additional taxes since those are your responsibility. But, if penalties or interests occur, it’s on your preparer.
In addition, if there’s any missing paperwork, or they are inaccurate, the blame will be on you and you alone.
3. Credentials aren’t obligatory
It may come as a shock to you that the only standards that preparers must have are a Preparer Tax Identification Number (PTIN).
But, the thing, is, anyone, and I mean EVERYONE, can have a PTIN. Working with certified individuals, make your chances of dealing with someone that has an educational background and knows what they’re doing, much higher.
