Choosing a Tax Preparer

Posted by: Carrie Minnich

Nonprofits with December year ends need to start thinking about filing their required Form 990 with the IRS. Form 990, which is available for public inspection, is an informational return that provides data on the organization’s missions, programs and finances. Often an organization’s 990 is used as a marketing tool that allows the organization to “tell its story” to the public. Because of this, you want to make sure that your organization’s 990 is prepared completely and accurately. It is important to utilize the services of a preparer that is familiar with nonprofit organizations and the tax issues unique to nonprofits.

The IRS (http://www.irs.gov/) has released a list of pointers to consider when selecting a tax preparer. In addition to someone who understands nonprofits, keep these items in mind when choosing a preparer.

• Check the person’s qualifications.
• Check the preparer’s history.
• Find out about their service fees.
• Ask if they offer electronic filing.
• Make sure the tax preparer is accessible.
• Provide all records and receipts needed to prepare your return.
• Never sign a blank return.
• Review the entire return before signing it.
• Make sure the preparer signs the form and includes his or her preparer tax identification number (PTIN).