A Tax Preparers Role

A taxpayer may find that the most efficient and cost-effective manner to comply with filing a timely and accurate tax return is to employ the services of a professional tax preparer. Since the
taxpayer is responsible for the accuracy of their tax return, they should choose an educated professional to assist with preparation. They should keep in mind the following:

“Anyone may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to
increase one’s taxes.”

This quote is from the case of Helvering v. Gregory and written by Learned Hand, an influential U.S. Court of Appeals judge who avidly supported free speech and applying economic
reasoning in resolving cases. In this decision, he expressed his view that “nobody owes any public duty to pay more than the law demands.” Many professional practitioners support his analysis.

Professional preparers should practice the following objectives:
a) Legally minimize tax
b) Exercise due diligence in preparing returns that deal with dependent children
c) Interpret gray areas to the advantage of the taxpayer, not the IRS
d) Diligently ask the taxpayer many questions so that no income or deductions and credits are
overlooked
e) Maintain taxpayer’s information in complete confidence
f) Meet requirements for competence and professional standing:
• Awareness of all tax laws affecting individuals
• Ability to research and interpret the tax laws
• A thorough and efficient interview technique
• Genuine respect and concern for the taxpayer
g) If a taxpayer prepares a return that is not in accordance with tax law or asks a preparer to
construct a return that is not legally acceptable, the professional preparer should inform the
taxpayer of the correct way to report the item and advise them to comply with the tax laws and
regulations. The preparer is under no obligation to report the taxpayer. However, if questioned by
a representative of either the federal or state government, the preparer is expected to tell the
truth.
h) The tax preparer should never prepare a return incorrectly merely because the taxpayer insists
on it.
i) Practitioners should always be alert for fraud. If a client answers questions vaguely
or provides suspicious answers, the tax preparer must assertively ask additional questions.
repairing a return for the taxpayer, they should explain
their position to the taxpayer and refuse to prepare the return.