INDIANA – Having your taxes prepared by a professional offers many benefits in addition to saving you time. By catching common mistakes, a tax preparer can lower your risk of an audit. Other tax professionals can sometimes offer strategies to maximize your tax return or reduce the amount you owe.
The Indiana Department of Revenue (DOR) offers these tips for hiring a tax professional to prepare your 2021 Indiana Individual Income tax return.
- You are still liable for your tax return. Even if you hire a preparer, you are still liable for the information on your tax return and for filing it on time.
- Hire the right person. Do you need a Certified Public Accountant (CPA) to prepare your taxes? CPAs are licensed professionals who handle complex tax situations. An Enrolled Agent is a federally licensed tax preparer.
- Understand the fees – There are flat fees, hourly fees, percentage of refund fees and more. Be sure to ask and then understand what fees will be charged to you. Note that the fees charged by a tax preparer are separate from the amount you owe in taxes.
- Ask about audit support. Will the preparer represent you in an audit? Is that an extra charge?
- Create an INTIME logon, then approve ePOA access for your tax practitioner. DOR’s new e-service portal, INTIME (The Indiana Taxpayer Information Management Engine), is a great tool for customers to check on their refund status, make payments, view account information, set up payment plans, and it provides secure messaging with DOR. You can also authorize your tax professional to access your account information, but to assure the security of a client’s online INTIME account and information, an electronic Power of Attorney (ePOA) is needed. Requesting ePOA access is done through a Tax Practitioner’s INTIME account. Once approved by the client (via their own INTIME account), the tax practitioner will be able to see and perform the same actions as the client including communicating with DOR on the client’s behalf through INTIME’s secure messaging. For more information, see the INTIME User Guide for Individual Income Tax Customers.
- Gather all necessary documents. One of the benefits of hiring a tax preparer is having someone else do the work. However, you must still give them all the documents, forms and receipts necessary to complete your return. Be sure to speak with your professional about the most efficient and secure way to provide this information. Your tax professional will need, at minimum:
- Form W-2s – An annual income report from your employer or employers.
- Form 1099s – This is also known as non-employment income or if you are an independent contractor.
- Receipts for deductions and credits.
- Spouse and dependent information – Along with your own information, be sure to provide your tax professional Social Security numbers and birthdates for your spouse (if filing a joint return) and for any dependents claimed.
If you are looking for a local tax professional, some locations to find a quality, qualified tax preparers are among the members of the Indiana CPA Society or the Indiana Society of Enrolled Agents. For more information, see our Find a Professional Tax Preparer page through dor.in.gov.
