Experienced Small Business Accountant - Many people use a tax professional to prepare
their taxes. Anyone who prepares, or assists in preparing, all or substantially
all of a federal tax return for compensation is required to have a valid
Preparer Tax Identification Number (PTIN). All enrolled agents must also have a
valid PTIN.
If
you choose to have someone prepare your federal tax return, then you should
know who can represent you before the IRS if there is a problem with your
return. Here's what you should know:
Representation
rights, also known as practice rights, fall into two categories:
- Unlimited Representation
- Limited Representation
Unlimited
representation rights allow a credentialed tax practitioner to represent you
before the IRS on any tax matter. This is true no matter who prepared your
return. Credentialed tax professionals who have unlimited representation rights
include:
- Enrolled agents
- Certified Public Accountants
- Attorneys
Limited
representation rights authorize the tax professional to represent you if, and
only if, they prepared and signed the return. They can do this only before IRS
revenue agents, customer service representatives and similar IRS employees.
They cannot represent clients whose returns they did not prepare. They cannot
represent clients regarding appeals or collection issues even if they did
prepare the return in question.
For
returns filed after December 31, 2015, the only tax return preparers with
limited representation rights are Annual Filing Season Program Participants.
The Annual Filing Season Program is a voluntary program. Non-credentialed tax
return preparers who aim for a higher level of professionalism are encouraged
to participate.
Other
tax return preparers have limited representation rights, but only for returns
filed before January 1, 2016. Keep these changes in mind and choose wisely when
you select a tax return preparer.
Questions?
Give us a call. We're happy to help! For consultation contact us today!
Amare Berhie, Senior Accountant
(651) 300-4777
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