Page 16- The News, February 16, 2017 1


Taxing Matters By Jim Wilson, CPA


Choose Your Tax Preparer Wisely


According to the IRS Tax Tip 2017-05, January 30, 2017, “Taxpayers should choose their tax return preparer wisely – with good reason. Taxpayers are responsible for all the information on their income tax return. That’s true no matter who prepares the return.” Here are ten tax tips to keep in mind: 1. Preparer’s Qualifications. Use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This tool helps taxpayers find a tax return preparer with the qualifica- tions that they prefer. The Directory is a searchable and sortable listing of preparers with a credentials or filing season qualifications. It in- cludes the name, city, state and zip code of: • Attorneys. • Certified Public Accountants • Enrolled Agents. • Enrolled Retirement Plan Agents. • Enrolled Actuaries. • Annual Filing Season Pro- gram participants. Attorneys, CPAs and en-


rolled agents can represent any client before the IRS in any situation. Annual Filing Season Program participants may represent clients in more limited situations. Non-cre- dentialed preparers who do not participate in the Annual Filing Season Program may only represent clients before the IRS on returns they pre- pared and signed on or before December 31, 2015. 2. Check the Preparer’s


History. Ask the Better Business Bureau about the preparer. Check for discipli- nary actions and the license status for credentialed prepar- ers. For CPAs, check with the State Board of Accountancy.


For attorneys, check with the State Bar Association. For Enrolled Agents, go to IRS.gov and search for “verify en- rolled agent status” or check the Directory. 3. Ask about Service Fees.


Avoid preparers who base fees on a percentage of the refund or who boast bigger refunds than their competition. When inquiring about a preparer’s services and fees, don’t give them tax documents, Social Security numbers and other information. 4. Ask to E-file. Taxpayers should make sure their pre- parer offers IRS e-file. Paid preparers who do taxes for more than 10 clients generally must file electronically. The IRS has safely processed bil- lions of e-filed tax returns. 5. Make Sure the Preparer


is Available. Taxpayers may want to contact their preparer after this year’s April 18 due date. Avoid fly-by-night pre- parers. 6. Provide Records and


Receipts. Good preparers will ask to see a taxpayer’s records and receipts. They’ll ask ques- tions to figure the total income, tax deductions, cred- its, etc. Taxpayers should not use a preparer who will e-file their return using their last pay stub instead of a Form W- 2. This is against IRS e-file rules. 7. Never Sign a Blank


Return. Don’t use a tax pre- parer who asks a taxpayer to sign a blank tax form. 8. Review Before Signing.


Before signing a tax return, review it. Ask questions if something is not clear. Taxpayers should feel com- fortable with the accuracy of their return before they sign it. They should also make sure that their refund goes directly to them – not to the preparer’s


bank account. Review the routing and bank account number on the completed return. 9. Ensure the Preparer Signs and Includes Their PTIN. All paid tax preparers must have a Preparer Tax Identification Number (PTIN). By law, paid preparers must sign returns and include their PTIN. 10. Report Abusive Tax Pre-


parers to the IRS. Most tax return preparers are honest and provide great service to their clients. However, some preparers are dishonest. I recently read about a preparer who received 150 months in prison for filing false tax returns. Be careful when choosing your tax preparer, because you are responsible for your tax return informa- tion. Ask questions. Ask why certain amounts are either deductible for includable in income.


Report abusive tax


preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If a taxpayer sus- pects a tax preparer filed or changed their return without the taxpayer’s consent, they should file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit. Tax- payers can get these forms on IRS.gov any time. Taxpayers should keep a


copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their iden- tity. Taxpayers can learn more about how to verify their iden- tity and electronically sign tax returns at Validating Your Electronically Filed Tax Return. Discovery: If you are a re-


tired Public Safety Officer, please consult Publication 575 and/or Publication 721. You may be allowed to deduct up to $3,000 from your pension for health related insurance you pay from your retirement benefits.


pare your taxes in accordance with tax law. Ask for a copy of our VITA by email.


For more information, call


Wilson & Wilson, PC, CPA, CFE at 615-673-1330 or email jim@wilsonandwilsoncpa.com


See an unusual photo perfect for


Whatʼs Wrong with This Picture? Send in your photo along with your name to: news@gcanews.com


2


CLUES ACROSS


10. A group of islands in the S Pacific


1. Artist Chagall 5. Imminent danger


11. Effeminate 14. Outcomes


13. Cosmetics applied to the face


15. The first game of the season 16. Tennis star Kournikova 17. Hospital surgical rooms 18. Manuscripts (abbr.) 19. Islands 21. Pool stick


22. Embroidered loop edgings on lace


24. The part of the skate that slides on the ice 26. Beauty parlour 27. Stone roof tiles 28. Ironic or sarcastic wit 29. Ends


30. Mechanical movement 31. Niches


32. Mythical king of Thebes 33. Lists of menu dishes 35. Finless fish 36. Triad 37. Words per minute 40. ___ Aviv: Israeli city 41. New Guinea monetary unit 42. Emperor Constantine IX Mono______


(Thank you goes to


Jimbo Allen and Karen for bringing this to my attention.) Our firm promises to pre-


49. Wipe out magnetically recorded information 50. Fluid accumulation in tissues


CLUES DOWN


1. Creates from raw material 2. After a prayer 3. Rake


4. Goat sign


5. Site of the famous Leaning Tower


8. Enters uninvited 9. Leaseholders 10. Runs down 11. Sea eagles 12. Composes 13. Female parent


6. A silver 5 franc piece 7. Settles


16. The 1st octave above the treble staff


20. Unit of loudness 22. A paved area adjoining a house


23. Ancient Troy 24. Nonchalant


25. Emits coherent radiation 26. A man-made orbiting object 27. Month 28. Shielded


29. An anxious feeling 30. A salt or ester of acetic acid 33. Classic board game 34. Coach Parseghian 36. Aromatic balsam used in medicine


37. Card game


45. Organisms such as humans 47. Process for gathering hay 48. Lockjaw


51. Payment for the use of something


38. Corn____: cornbread 39. Used as a food additive to enhance flavor


41. Source of the Blue Nile 43. Swiss river


44. Group of people related by blood or marriage 46. ___aroneck, NY


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