MN dhawk Posted February 4, 2009 Report Posted February 4, 2009 This year I am doing many returns that I won't be charging for. (family, both my friends and the economically unstimulated) In the past I would let the program print in my name and I would just sign them, since in some years it was easier than getting the paid preparer information out. This year it is somewhat easier. I wonder if the IRS pays any attention to this and estimates my own income. What do you do?? Quote
michaelmars Posted February 4, 2009 Report Posted February 4, 2009 how can they use this to estimate income of the preparer unless its geographically adjusted etc. i see that some here charge $75 for a basic return and i charge $250. [i do tell some clients that they are so basic they could use h&r etc. but they use me for my knowledge and access to year round financial advise. i generally sign as preparer so the IRS will correspond with me re:questions. i just figure i am paid in love! i never saw where the payment has to be in $$$ (s) Quote
Terry D EA Posted February 4, 2009 Report Posted February 4, 2009 Iagree. I too do many returns for family and some friends for free. Still sign the return as paid preparer simply cause I am too lazy to remove it. (Not really just think it doesn't matter). I have been doing this for years and the IRS has not adjusted my tax return yet. Maybe we should keep it quiet and not give them any ideas! Terry D. Quote
JRS Posted February 4, 2009 Report Posted February 4, 2009 20% of my returns are for clients' elderly parents. I sign all of them and do not charge for them. I guess I could claim barter trade as I always get a few home made cookies or something similar. With my rates, it would still take a lot of cookies to equal one tax return. Quote
Janitor Bob Posted February 4, 2009 Report Posted February 4, 2009 20% of my returns are for clients' elderly parents. I sign all of them and do not charge for them. I guess I could claim barter trade as I always get a few home made cookies or something similar. With my rates, it would still take a lot of cookies to equal one tax return. I sign all of mine as paid preparer, but only actually charge for 75% of them...the others pay in casseroles, pies, or a thank you. Quote
GeneInAlabama Posted February 4, 2009 Report Posted February 4, 2009 i just figure i am paid in love! i never saw where the payment has to be in $$$ (s) If the IRS figures a way to tax that, they will! Quote
RoyDaleOne Posted February 4, 2009 Report Posted February 4, 2009 I recall, the last time I looked, you are required to sign the return if your are the preparer. It does not matter whether you are paid or not. Is this still the case? Quote
GeneInAlabama Posted February 4, 2009 Report Posted February 4, 2009 At the bottom of the 1040, it says "PAID Preparer's Use Only"; but as others have said, I never bother to remove the information from that section on returns I do not charge for. I have been doing that for over 30 years and have had no problem yet. Tomorrow, someone may come knocking on my door. Before computers, I had the information pre-printed on the 1040 and state form. Quote
kcjenkins Posted February 5, 2009 Report Posted February 5, 2009 I recall, the last time I looked, you are required to sign the return if your are the preparer. It does not matter whether you are paid or not. Is this still the case? No. If you are not paid, you do not have to sign the return. If you are paid, even in cookies, I'd think you should sign. No way the IRS has the resources or time to try to estimate income based on the number of returns you sign, tho. Quote
Gail in Virginia Posted February 5, 2009 Report Posted February 5, 2009 I prefer to sign even when I am not paid simply because I don't want to miss one that I should have signed, nor do I want to have any question ever raised about why I wouldn't sign a return. As long as I do everything on the up and up, I can't see what harm can be done by me signing a return I didn't get paid for, but I know the penalties for failing to sign when I should. Quote
joelgilb Posted February 5, 2009 Report Posted February 5, 2009 I get my clients to pay me because they like me then I do all the returns for free. Maybe I should stop signing any of them! lol Quote
Mel in Hawaii Posted February 5, 2009 Report Posted February 5, 2009 Isn't this more of a liability issue than one of calculating your compensation? Quote
kcjenkins Posted February 5, 2009 Report Posted February 5, 2009 Sure, but if you never do anything on a free return that you would not do on a paid one, where is the problem? The issue of signing is that you are attesting that you prepared it as truthfully and completely as possible, and that should be the same whether you get paid or not. Quote
B. Jani Posted February 6, 2009 Report Posted February 6, 2009 I always sign the return if I prepared one. Whether paid or unpaid. B Jani Quote
Dan Posted February 9, 2009 Report Posted February 9, 2009 On (page 66) of "1040 Instructions" (Paid Preparer Must Sign Your Return) it says, "...Someone who prepares your return but does not charge you should not sign your return." Quote
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