How accurate are accountants when preparing tax forms

How accurate are accountants when preparing tax forms?

A lot of taxpayers think that just because they go to accountants, their tax returns are correctly prepared and that they are not liable for any mistakes on their tax returns. This is a huge misconception.

Each taxpayer is responsible for preparing his or her tax return correctly. If there is a problem with your tax return, the IRS will come after you, not your tax preparer or the accountant who prepared your tax return. If you file your tax return using the incorrect tax filing status, then the IRS will penalize you and fine you. If you claim too much tax deductions or tax credits you are not eligible for, then the IRS will assess tax penalties on you.

Will the accountant be liable for any mistakes on my tax return?

While many accountants have guarantees that say that they will find you the most tax deductions and tax credits and that if they have made any errors on your tax return which result in you being fined by the IRS then they will gladly pay the fees and tax penalties on your behalf. However, the IRS still hold you (the taxpayer) responsible no matter who pay the tax penalties.

Also, it is most likely that the accountant will have you sign certain papers declaring what tax credits or deductions you want to claim. So, in case of the IRS questioning the validity of certain tax credits or deductions, the accountant will dish out that piece of paper which you sign and tell the IRS that he or she has prepared your tax return exactly based on the information you provide. So, if there is any inaccurate information on your tax return, it is likely that the accountant will be able to prove that you in fact gave them that incorrect information.

How accurate are accountants when preparing tax forms?

It depends on the accountant. Some accountants are more accurate than others. Some accountants will go the extra mile in asking you the questions about your situation so that they will get it completely accurate on your tax forms. Others will just take whatever you say without questioning. However, in many instances taxpayers are not aware of certain tax laws and unknowingly give information that are not entirely accurate. It happens very often and if the accountant just take the information at face value, the tax forms may not be prepared in the most accurate manners.

Tax Questions is a resource and information website only. We do not offer individual advice. For specific tax questions and answers, you are advised to consult your tax attorney.