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It is every working person's obligation to ensure that they pay tax.  Tax compliance is a requirement by law for every working citizen of any country.  However, many people do not know how to prepare their tax returns in the proper manner.  They, therefore, hire the services of tax preparation company to file their tax returns. 

 

A tax preparation company should be able to represent you in a tax audit if need be.  It is therefore important that you declare your income, bank accounts, marriage, kids and even your Social Security Number.  Since the tax preparation company gets many details about your personal life, it is worthwhile to hire a credible and reputable company.  The following are tips on choosing the best tax preparation company.

 

To look for a tax preparation company, it is best if you could start with referrals.  Ask for recommendations from business owners, lawyers, friends or family members.  If you get a referral, that would be the best since you have the testimonials.  If you don't get a referral, consider checking in the Internal Revenue Services (IRS) website for a list of the registered companies. You can click here to know more. 

 

Once you have a list of them, it is wise to have a few contacts for comparison purposes.  First, ask if the tax company has the appropriate professional credentials recognized by the IRS.  If he has, ensure that you verify the details by searching the IRS' directory.  The company should also have a Practitioner Tax Identification Number (PTIN), which gives them the authority to prepare tax returns for refund.  This number should be indicated on your returns since it is a requirement by the IRS.

 

In addition to this, it is always advisable to look for a company which has registered itself with a professional organization.  This is because the organizations usually have a code of ethics to be followed by every member.  They also hold many programs for certification and have laid down requirements for their member's professional conduct in the course of the business.

 

Additionally, it is important to hire a tax company which will file your returns electronically through the e-file system of the Internal Revenue Services.  By doing this, you will be assured that your tax returns have been done in the correct way and have been filed.  Always make sure that the company that you hire will sign your returns and put their PTIN on them.  However, be keen never to sign your returns when blank, to avoid disappointments by fraudulent tax companies. Get a Tax Prep Quote now! 

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To know more about what a tax advisor can do for you, visit https://en.wikipedia.org/wiki/Tax_advisor.