Understanding CPA Tax Preparation  Responsibilities

Understanding CPA Tax Preparation Responsibilities

Dec 09 2015

Understanding CPA Tax Preparation Responsibilities


Typically, a CPA tax preparer has a lot on his shoulders. He/she needs to get everything done with utmost transparency, honesty and dedication while maintaining the trust levels of the client. It is the primary duty and responsibility of a CPA tax preparer to draft and submit a truthful income tax return to the IRS to avoid penalties, charges and even legal consequences. 

Furthermore, tax preparer must also stay abreast of the recent modifications and alterations in tax laws and how they are impacting their client’s business. To do so, they need to have thorough knowledge and understanding of the Federal and State laws.

To deeply understand the basic CPA tax preparation responsibilities of a CPA tax preparer, keep reading below:

Conduct Client Interviews

To adequately understand the tax form of the client and prepare accurate tax returns, a CPA tax preparer must ask relevant questions. They must be able to draw pertinent information about the client’s annual income, deductions, expenditures and exemptions (if any). Also, the tax preparer must be aware of whether the client owns that business or not. In case, the client has asked the tax preparer to find about the tax return for the previous year, then the CPA tax preparer must assess last year’s tax forms and inquire about any changes. 

Accumulate Financial Information

A tax preparer must do all that it takes to calculate income tax returns. From accessing current year’s financial information to the social security numbers, they must openly ask for all the information to come up with accurate results. Some of the most commonly needed financial information includes income statement, receipts & expenditures and other forms received by the client.

Completing the Forms

Nowadays, most income tax preparers make use of income tax software to determine the tax returns. Such software provides the preparer with a checklist so that they know which forms are missing to calculate the tax return. 

CPA tax preparers that don’t use this software are often provided with forms by IRS that can automatically perform calculations. Tax preparers often make use of tax deductions and savings to eliminate or reduce the client’s tax to a minimum. However, in usual situations, it is common for the tax preparer to direct to the IRS website for assistance. Once the forms are completed, the CPA tax preparer advises the client to pay the due or claim refund.

Filing the Forms

Many tax preparers electronically file the tax return for clients. Typically, IRS provides them with a filing service for no cost. There are a number of advantages for clients when their tax returns are filed electronically such as accuracy, swiftness and promptness of returns. Primarily, a tax preparer needs two essential piece of information for filing the forms: previous year’s gross profit (adjusted) and the PIN number. 

At, we connect you to the finest CPAs and tax accountants that can effectively carry out CPA tax preparation services. Get registered with us, that’s the best way to find a CPA!


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