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Know Your Tax Preparer

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Sinopsis

UNDERSTANDING THE PROFESSIONAL LANDSCAPE:Tax preparers are typically CPAs (Certified Public Accountants), Enrolled Agents, or specialized attorneys. CPAs have more stringent requirements than Enrolled Agents.There's a shortage of CPAs and Enrolled Agents, leading to firms hiring high school interns at competitive rates to encourage CPA careers.Due to professional shortages, there's a risk of encountering unscrupulous tax preparers, potentially leading to scams like refund fraud and identity theft. SAFEGUARDS AGAINST FRAUD:Seek preparers available year-round, especially useful in case of audits.Verify the preparer’s IRS Preparer Tax Identification Number (PTIN) through the IRS directory.Inquire about their professional credentials and continuing education to ensure they're up-to-date with tax laws.Check their professional history via the State Board of Accountancy for CPAs, the IRS for Enrolled Agents, and State Bar Association for attorneys. WARNING SIGNS TO WATCH FOR:Avoid preparers who base fees on refund p