Choosing a Tax Expert for Your Small Business

Tax experts can guide small businesses on the optimal organizational structure, advising whether to operate as a sole proprietorship or consider other formations like a partnership or S corporation for better protection of business interests.

Tax professionals typically review financial records, ensuring all income is accurately reported and all eligible deductions and credits are claimed to benefit the business.

They can also address specific queries, including obligations regarding excise taxes or the necessity for filing employment tax returns.

If the IRS reaches out concerning a tax issue, a proficient tax professional can represent the business during the process.

An informed tax advisor is alert to common tax scams, such as phishing and unclaimed refunds, outlined on the IRS’s Tax Scams and Consumer Alerts webpage. They can help businesses recognize and steer clear of such fraudulent activities, emphasizing that if an offer seems too appealing, it likely is not genuine.

How to Find a Reputable Tax Professional for Your Small Business It remains the taxpayer’s responsibility to ensure the accuracy of all information on their tax return, regardless of who prepares it. Hence, it’s vital to choose a trustworthy preparer. The IRS suggests the following tips for finding a tax professional:

• Utilize the IRS Directory of Preparers, which includes individuals with recognized credentials or those who have completed the IRS Annual Filing Season Program.
• Investigate the preparer’s background through the Better Business Bureau or confirm an enrolled agent’s status via IRS.gov.
• Inquire about the preparer’s fees beforehand.
• Verify if the preparer is a certified e-file provider.
• Make sure the preparer is accessible year-round for any follow-up questions on the tax return.
• Review your business tax return carefully before signing it.
• Confirm that the preparer signs the tax return and includes their Preparer Tax Identification Number (PTIN), as required for all professional tax preparers.

IRS Support for Small Businesses The IRS extends various support programs for small businesses, such as the Information Return Intake System and the IRS Business Tax Account, among other resources available under Tax Information for Businesses on IRS.gov.