Selecting a tax professional as a small business taxpayer

When a small business decides to bring in a tax professional, they should know what to expect and how to select a reputable practitioner. The IRS has information and resources to make choosing a tax professional easier.

What a small business can expect from a tax professional
Tax professionals are often able to advise a small business on the most effective way to structure their business. For instance, they can help a business owner decide whether their business interests would be better protected as a sole proprietorship or if another business structure, such as a partnership or S corporation, would serve them better.

Many tax professionals inspect books and records to help a business make sure that it is reporting all income. They can also make sure the business claims all the deductions and credits available to it.

A tax professional can help small business taxpayers answer other questions as well, such as whether they are subject to excise taxes or need to file employment tax returns.

A qualified tax professional may be able to represent the business if it’s contacted by the IRS regarding a tax matter.

A knowledgeable practitioner is also aware of many tax-related scams, like phishing, unclaimed refunds, ghost preparers and others described on the Tax Scams and Consumer Alerts page of IRS.gov.  A practitioner knows that if something sounds too good to be true, it probably is, and they can help businesses avoid and report such scams.

Find a small business tax professional
Taxpayers are responsible for all the information on their income tax return no matter who prepares the return, so it’s important to find a reputable preparer. The IRS offers these tips to small businesses looking for a tax professional:

  • Check the IRS Directory of Preparers. It lists preparers who hold professional credentials recognized by the IRS or a Record of Completion in the IRS’s Annual Filing Season Program.
  • Check the preparer’s history with the Better Business Bureau or verify the enrolled agent’s status on IRS.gov.
  • Ask about the practitioner’s fees up front.
  • Find out if the preparer is an authorized e-file provider.
  • Ensure the preparer is available throughout the year to help address any questions about the preparation of the tax return.
  • Always review the business tax return before signing it.
  • Ensure the preparer signs the tax return and includes their 9-digit Preparer Tax Identification Number. All paid preparers must have a PTIN to prepare tax returns.

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