Yes, you can trust professionals to do your taxes, but you must choose them carefully to avoid fraud or identity theft. Most preparers are honest, but you should only trust those with a Preparer Tax Identification Number (PTIN) who sign your return, provide a copy, and do not base fees on a percentage of your refund.
Avoid return preparers who claim they can get you a larger refund than other preparers. Avoid preparers who base their fee on a percentage of your refund. Make sure you get a copy of your records. Make sure the preparer signs and enters a preparer tax identification number (PTIN) on your tax return.
The IRS warns taxpayers to choose carefully. Most tax professionals provide excellent service. However, there are some deceitful tax preparers out there who make a living through refund fraud, identity theft, and other harmful scams.
The biggest tax mistakes people make include filing late, math errors, incorrect personal info (like Social Security numbers), forgetting deductions/credits (like EITC), misreporting income, not signing forms, and making errors with bank details for direct deposit, all leading to delays, penalties, or missed savings, with using tax software or professionals helping avoid these common pitfalls.
Who is Liable – the Tax Payer or the Tax Preparer? Even if your preparer commits an egregious error or engages in fraudulent activity, you generally remain liable for paying any additional tax, interest, and civil penalties the IRS or the California Franchise Tax Board (FTB) assesses.
Attorneys, certified public accountants, enrolled agents or anyone who gets paid to prepare tax returns may owe a penalty if they don't follow tax laws, rules and regulations.
Choosing whether to hand over your tax preparation to a professional is a personal choice, but doing so makes the most sense, and has the potential to yield the most benefit if: You've left filing too late or you have other pressing priorities, and you need your taxes done right and done now.
In terms of missed deductions or triggering an IRS letter or audit; a tax professional can help eliminate errors and ensure your returns are prepared correctly. You benefit with money-saving tax planning. Tax professionals can advise you now and all year round on the best strategies to make smart tax-saving decisions.
Although you can split your refund among up to three different bank accounts, a return preparer isn't authorized to have your refund deposited into an account under his or her control, even if you owe the preparer a fee for preparing your tax return.
At a glance
The minimum income amount to file taxes depends on your filing status and age. For 2025, the minimum income for Single filing status for filers under age 65 is $15,750 . If your income is below that threshold, you generally do not need to file a federal tax return.
Tax laws are complicated but the most common tax return errors are surprising simple. Many mistakes can be avoided by filing electronically. Tax software does the math, flags common errors and prompts taxpayers for missing information. It can also help taxpayers claim valuable credits and deductions.
Independent contractors must report all income as taxable, even if it is less than $600." If you fail to report your income, it can result in hefty penalties.
The "20k rule" refers to the traditional IRS threshold for reporting income from payment apps and online marketplaces on Form 1099-K: over $20,000 in gross payments AND more than 200 transactions in a calendar year. While a law (the American Rescue Plan) temporarily lowered the threshold to $600, recent legislation, the One Big Beautiful Bill Act (OBBBA) (OBBBA), has reinstated the $20,000/200-transaction rule for tax years starting in 2025, providing relief for casual sellers and gig workers.
You (or your tax pro) will meet with the IRS agent at an IRS office. The IRS usually starts these audits within a year after you file the return, and wraps them up within three to six months.
Signed copy of your individual tax return(s), as it was intended to be filed (if required to file). Copy of your tax return received from your tax preparer. Preparer Information: Evidence corroborating that the tax preparer held themselves out as being in the business of preparing returns.
The IRS does not check every tax return. It does not check the majority of them, but the IRS implements methods that track certain factors that would result in a further examination or audit by them.