Here's who can legally handle your tax returns in 2015
By Brian O'Connell/MainStreet.com
Internal Revenue Service statistics show taxpayers filed 149.7 million individual income tax returns for tax year 2014, up 1 percent from 2013, and a lot of tax refunds are on the line this tax season -- about $305.7 billion worth -- making the proper filing of tax forms a big deal for millions of Americans.
Unfortunately, some Americans may make a mistake choosing a tax preparer. By federal and state law, only a few types of preparers are OK'd to handle tax returns.
For example, in California, licensed tax preparers must file a $5,000 tax preparer bond and register with the state. Individuals and companies cannot ask for a fee without registering, as is the case in most states. It's always a good idea to check that your tax preparer or service is legitimate (which you can do by checking TaxPrepareRegistry.com, which runs a nationwide database of professional, and credentialed tax preparers).
Check with your state's consumer affairs department for specific rules where you live, but this is a general list of tax preparers:
A tax lawyer: Most tax attorneys are allowed to file taxes on your behalf, but you should check with your lawyer to make sure he or she is credentialed with your state.
A certified public accountant: A CPA is a good bet to handle your taxes. Each have specific training and experience to handle consumer returns.
An enrolled IRS agent: The IRS allows enrolled agents to handles consumer tax forms. Each enrolled agent must pass a "stringent IRS exam, plus complete continuing education courses on federal tax laws," the California Tax Education Council says.
There's no guarantee that you'll get everything coming to you with a credentialed tax preparer -- but it sure helps. According to 2014 study by the U.S. General Accounting Office, 55 percent of tax preparers were unenrolled, and the GAO says it has found "significant preparer errors" in a survey of tax preparation services.