Responsible for independent preparers in my account?

Forum|Forum|5 years ago
July 13, 2021
2 replies
10 views

Suppose I add independent preparers in my organization, and they use their own PTIN to sign the return but my organization name and E-file account, am I responsible for their returns in anyway? Do their return affect me? Legally and practically?

By "practically" I mean: if they have a high percentage of returns get audited and found incorrect, would the IRS has more inclination to audit my returns? (I am not afraid to be audited, but I try to avoid the hassle).

ProConnect Tax

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George4Tacks

Level 15

What is going to show as the firm name on the tax return?

Could these people be considered employees? https://www.robertschriebman.net/articles/part-time-help-in-your-tax-and-accounting-practices-independent-contractor-or-employee/

You pose the most troublesome questions that I have ever seen on this forum and I am really having second thought about even reacting to this one, but I like bees and have even handled fresh combs from their hive.

Answers are easy. Questions are hard!

T

Terry53029

Intuit Community Champion

§ 301.7701-15 Tax return preparer.

(a) In general. A tax return preparer is any person who prepares for compensation, or who employs one or more persons to prepare for compensation, all or a substantial portion of any return of tax or any claim for refund of tax under the Internal Revenue Code (Code).

I would think you can be held accountable for your employees, as in the eyes of IRS you are a Tax Return Preparer

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