| There are numerous ethical and professional | | | | Not charging a contingent fee (percentage of a |
| standards by which paid tax preparers must abide. | | | | client’s refund) for preparing an original tax return. 4. |
| Taxpayers are legally responsible for what’s on | | | | Returning original documents to the client, regardless of |
| their own tax returns even if prepared by someone | | | | any fee dispute. |
| else, but tax preparers can also be subject to | | | | Anyone who is thinking about offering tax services |
| numerous penalties, and can even be charged with a | | | | should read IRS Circular 230, Regulations Governing |
| criminal offense if it is proved that they have knowingly | | | | the Practice of Attorneys, Certified Public Accountants, |
| committed tax fraud. | | | | Enrolled Agents, Enrolled Actuaries, and Appraisers |
| Examples of improper actions by unscrupulous | | | | before the Internal Revenue Service. |
| preparers include the preparation and filing of false | | | | >Christy Pinheiro is an Enrolled Agent and Accredited |
| paper or electronic income tax returns that claim | | | | Business Advisor. She worked for two CPA firms and |
| inflated personal or business expenses, false | | | | also for the State of California before going into |
| deductions, unallowable credits, or excessive | | | | private practice. She has published numerous books on |
| exemptions. Other legal requirements for paid tax | | | | taxation and finance. She is the co-author of the |
| preparers include: | | | | Passkey Publications Enrolled Agent Exam Review |
| 1. Signing the return and filling in the preparer areas of | | | | Series. |
| the form. 2. Giving the client a copy of the return. 3. | | | | |