Season of Risk – Protecting Clients and Their Data

security

Safety of your personal information and the threat of identity theft is one of the top concerns today by taxpayers. Because of this, here are a few things to consider when selecting a tax preparer for your business:

Preparer Credentials. The IRS requires anyone who prepares or assists in preparing federal tax returns for compensation to have a valid Preparer Tax Identification Number (PTIN). Additionally, your preparer should have a professional designation such as a Certified Public Accountant (CPA) or Enrolled Agent (EA) which requires them to attend continuing education classes.

Preparer History. Consider how long the preparer has been in practice, reputation in the community, their professional network, and what resources they have available. You can also check for disciplinary actions and licensure status through the state boards of accountancy, the state bar associations for attorneys, and the IRS Office of Enrollment for enrolled agents.

Preparer Specialty. Most tax preparers develop a focus, such as, trusts and estates, or small business returns. Make sure they specialize in an area that meets the specific needs of your business.

Preparer Availability. Make sure the tax preparer is accessible so that you can contact them year-round, not only just during tax-season! Consider if they are staffed properly to handle your needs.

The recently passed Tax Cuts and Jobs Act is the most extensive tax law of the past three decades, meaning you should take a closer look at your tax situation than at any time during the past three decades. Because your tax preparer also serves you as a trusted advisor, here are additional factors to consider when evaluating your tax preparer:

  • The tax preparer clearly explains things to you in a way you understand.
  • The tax preparer solves your problems using their available resources.
  • The tax preparer views your account as a priority.
  • The tax preparer gives good value for a reasonable fee.
  • The tax preparer provides timely information and advice on a regular basis.

It takes an educated professional to properly sort your business transactions into taxable income and expenses to the government’s satisfaction. Monthly, quarterly and annual reports are governed by strict regulations and doing things incorrectly may result in heavy penalties!

We thank you for your trust in our ability to safely maintain your information, to keep you out of harm’s way, and to provide you with exceptional accounting and tax services.

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About Padgett Team

Our firm is a leader in outstanding accounting, tax payroll and business services. Our dedication to the 3 dominating business requirements of Professionalism, Timeliness and Excellence dictate the day-to day service we provide equally to each client. No small business is too small.

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