tax time

Tax Time: Who Can (and Can’t) Legally Represent You Before the IRS?

There’s nothing more intimidating than a letter from the IRS that questions your federal tax return and threatens to shake your world. Everything you’ve worked so hard for in your small business could be gone in the blink of an eye. It’s frightening to think it’s just you against them. But, with a small business tax professional, if you are audited, you don’t have to go it alone. That is if you chose the right type of small businesses tax professional.

Tax Return Preparers – Wisdom to Know the Difference

When it comes to hiring someone to handle your tax preparation and planning for SMBs, it’s important to know a few things beforehand. Although all are required to have a valid Preparer Tax Identification Number or PTIN, not all small business tax professionals are created alike. There are two basic types of representation rights that tax return preparers can have: Unlimited representation and limited representation.

Tax return preparers who possess unlimited representation rights include attorneys, enrolled agents, and Certified Public Accountants (CPA). They are able to represent you before the on any IRS tax matter. Those with limited representation rights, however, are permitted to represent you only if they are the ones who prepared (and signed) your tax return. Furthermore, tax preparers with limited representation rights do not have the authority to represent clients on collection issues or appeals, regardless if they prepared the return or not.

And, there’s more. The only tax preparers with limited rights who can legally represent tax returns which were filed after December 31, 2015, are Annual Filing Season Program Participants. The Annual Filing Season Program (AFSP) is a voluntary Internal Revenue Service (IRS) program that’s comprised of tax professionals who are aspiring to work on a higher level of professionalism.

When choosing someone to do your tax preparation and planning for small businesses, you will want to expect the best but prepare for the worst. If your number does come up and the IRS comes to call, you’ll want to be sure the signature that accompanies your own on your federal tax return belongs to someone who can go the next leg of the journey with you. You’ll want to know you are in good hands and will be properly represented.

Our trained representatives are qualified to provide you with the services you need now, like tax planning, tax preparation, tax problem resolutions, full-service accounting, payroll processing, Quickbooks setup and support, and bookkeeping. They are also able to assist you in the areas you may possibly need later like tax audit protection, easy tax problem resolution, and tax relief. When it comes to tax representation – choose wisely. Choose Complete Small Business Solutions. Request a free initial consultation online now. Our rates are affordable. We are experienced and friendly.