[ColoradoCPA]

I need an advise. I have passed exam (no license yet). I was a offered a position with in a company to prepare tax returns. The owner of the company is an enrolled agent (not a CPA). He has many clients and overload of work. I was asked to provide my PTIN number to prepare and sign returns. I will be a W2 employee. I do not know how it is done in CPA companies. Who is supposed to sign tax return? is there a rule? Any help greatly appreciated!

FAR 81 ✓
AUD 97 ✓
BEC 75 ✓
REG 84 ✓

[Anonymous]

You can sign the returns. When you sign the return, you take on the preparer's liability, so you may want to research that some and be sure that the compensation is worth it…however, as long as you have a PTIN, you can sign. At one point the IRS was pushing to require any paid preparers to be Registered Tax Return Preparers (RTRP), which required an exam and a yearly fee, but that got rules against by the Supreme Court so as of the moment you can prepare returns without being a CPA, EA, RTRP, or anything else. The IRS is trying to find a way to make the program pass the court's inspection, but last I heard their hopes for that required going through Congress, so you know that nothing will be passed and instituted before you've got the experience to be a CPA! 😉 I'm sure it would have to have a phase-in period anyway – I think it was supposed to be 3 years from when the IRS started the RTRP program till it could be required, but it was done away with before it became required.

[Anonymous]

You can sign the returns. When you sign the return, you take on the preparer's liability, so you may want to research that some and be sure that the compensation is worth it…however, as long as you have a PTIN, you can sign. At one point the IRS was pushing to require any paid preparers to be Registered Tax Return Preparers (RTRP), which required an exam and a yearly fee, but that got rules against by the Supreme Court so as of the moment you can prepare returns without being a CPA, EA, RTRP, or anything else. The IRS is trying to find a way to make the program pass the court's inspection, but last I heard their hopes for that required going through Congress, so you know that nothing will be passed and instituted before you've got the experience to be a CPA! 😉 I'm sure it would have to have a phase-in period anyway – I think it was supposed to be 3 years from when the IRS started the RTRP program till it could be required, but it was done away with before it became required.

[Tncincy]

You are signing the tax return with the Ptin (which requires you to register with the irs as a paid preparer) instead of your ssn. I like that better so that random people are not walking around with your ssn on their return. Most folks still do not discard things properly, so it could end up anywhere. You as well as the company assume responsibility for the returns you prepare. So make sure you check, check and double check. You could use an efin (to efile a return) and an ein number if you are self employed.

So the company is not doing anything shady by asking you to provide your own PTIN.

It begins with a 75
Been here too long as a cheerleader.....time to pass

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Tncincy]

You are signing the tax return with the Ptin (which requires you to register with the irs as a paid preparer) instead of your ssn. I like that better so that random people are not walking around with your ssn on their return. Most folks still do not discard things properly, so it could end up anywhere. You as well as the company assume responsibility for the returns you prepare. So make sure you check, check and double check. You could use an efin (to efile a return) and an ein number if you are self employed.

So the company is not doing anything shady by asking you to provide your own PTIN.

It begins with a 75
Been here too long as a cheerleader.....time to pass

It begins with a 75
Been here too long as a cheerleader....ready to pass

[ColoradoCPA]

I agree that if you work for yourself and do return independently from the firm. You sign returns and use your PTIN. I have my PTIN number. I did not know if you work for the company as an employee (W2) you can be asked to sign return. I am responsible person and I will check everything carefully even if I would not have asked to sign. But still, I thought the company is supposed to have professional liability since I represent them. The company keeps most of the $$ from the taxpayer. It does not seem logical. I thought the owner signs or any of the partners.

FAR 81 ✓
AUD 97 ✓
BEC 75 ✓
REG 84 ✓

[ColoradoCPA]

I agree that if you work for yourself and do return independently from the firm. You sign returns and use your PTIN. I have my PTIN number. I did not know if you work for the company as an employee (W2) you can be asked to sign return. I am responsible person and I will check everything carefully even if I would not have asked to sign. But still, I thought the company is supposed to have professional liability since I represent them. The company keeps most of the $$ from the taxpayer. It does not seem logical. I thought the owner signs or any of the partners.

FAR 81 ✓
AUD 97 ✓
BEC 75 ✓
REG 84 ✓

[Tncincy]

The company should have professional liability mainly for omission and errors, but they can ask you to sign with a PTIN. It identifies you as the paid preparer, it doesn't mean the company is not liable. Fraud is another story. I think it is safe to sign returns with your PTIN instead of your ssn. The company has to have a way to identify you from other preparers I would think. The owners should not sign returns they did not prepare.

It begins with a 75
Been here too long as a cheerleader.....time to pass

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Tncincy]

The company should have professional liability mainly for omission and errors, but they can ask you to sign with a PTIN. It identifies you as the paid preparer, it doesn't mean the company is not liable. Fraud is another story. I think it is safe to sign returns with your PTIN instead of your ssn. The company has to have a way to identify you from other preparers I would think. The owners should not sign returns they did not prepare.

It begins with a 75
Been here too long as a cheerleader.....time to pass

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Anonymous]

Yeah, if the owners aren't working on the returns, they shouldn't be signing them, since they have no involvement with it beyond the signature. On the bright side, this will let the clients start to know who you are…and when their friend says “Who did your taxes?” and they go “Dang I can't remember who ti was…let me go check my return”, they'll come back and say “OH, it was ColoradoCPA – here's his number, I'd highly recommend him”, instead of saying “It was John Smith”, when they never actually worked with John Smith!

As far as the liability goes, I would think that their E&O insurance would still cover it as far as liability to the clients, but I think that there is still some liability to the IRS – like with the Earned Income Credit returns, I think if I remember right the IRS can charge a fee of $500 if they don't think that your position was adequately supported (and for EIC, “The client provided these documents” isn't always enough if they don't feel like the documents were adequate – EIC requires a bit more validation on the part of the tax preparer). If I was you, I'd try to arrange something in writing with the employer that says that any fees or penalties that you incur from providing a tax return in their office are their liability. I don't know if they'd do it or not, but i'd at least try!

[Anonymous]

Yeah, if the owners aren't working on the returns, they shouldn't be signing them, since they have no involvement with it beyond the signature. On the bright side, this will let the clients start to know who you are…and when their friend says “Who did your taxes?” and they go “Dang I can't remember who ti was…let me go check my return”, they'll come back and say “OH, it was ColoradoCPA – here's his number, I'd highly recommend him”, instead of saying “It was John Smith”, when they never actually worked with John Smith!

As far as the liability goes, I would think that their E&O insurance would still cover it as far as liability to the clients, but I think that there is still some liability to the IRS – like with the Earned Income Credit returns, I think if I remember right the IRS can charge a fee of $500 if they don't think that your position was adequately supported (and for EIC, “The client provided these documents” isn't always enough if they don't feel like the documents were adequate – EIC requires a bit more validation on the part of the tax preparer). If I was you, I'd try to arrange something in writing with the employer that says that any fees or penalties that you incur from providing a tax return in their office are their liability. I don't know if they'd do it or not, but i'd at least try!

[Anonymous]

I don't know, I find this strange. I'm sure some firms make you sign the retun as the preparer but in he two cpa firms I have worked for so far, the partners name was always down as the preparer with their ptin number. Obviously, we would prepare the reruns and they would review them. So it's like they “prepared” them anyway.

[Anonymous]

I don't know, I find this strange. I'm sure some firms make you sign the retun as the preparer but in he two cpa firms I have worked for so far, the partners name was always down as the preparer with their ptin number. Obviously, we would prepare the reruns and they would review them. So it's like they “prepared” them anyway.

[ColoradoCPA]

I started to work at the company where I am asked to prepare and sign returns. There is no second review after I prepare them. The owners said since I am a tax preparer, I have to sign. He called me unsupervised tax preparer. Lilla, you had a good point that it is possible that the client will follow me later. But the company's name and phone is on the return (not mine).

I had an another job interview with CPA firm today. I asked about signing returns. He said “you prepare, I review and sign all returns”. It does make sense.

I have talked to lady today, she prepares returns for the liberty tax (tax chain company). She makes there $8 per hour plus 3% from return). She is required to sign the returns and a pay is unbelievably low. She has personal professional liabilities. It is sooo wrong…..

FAR 81 ✓
AUD 97 ✓
BEC 75 ✓
REG 84 ✓

[ColoradoCPA]

I started to work at the company where I am asked to prepare and sign returns. There is no second review after I prepare them. The owners said since I am a tax preparer, I have to sign. He called me unsupervised tax preparer. Lilla, you had a good point that it is possible that the client will follow me later. But the company's name and phone is on the return (not mine).

I had an another job interview with CPA firm today. I asked about signing returns. He said “you prepare, I review and sign all returns”. It does make sense.

I have talked to lady today, she prepares returns for the liberty tax (tax chain company). She makes there $8 per hour plus 3% from return). She is required to sign the returns and a pay is unbelievably low. She has personal professional liabilities. It is sooo wrong…..

FAR 81 ✓
AUD 97 ✓
BEC 75 ✓
REG 84 ✓

[Author]

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