P# requirements

[Nashville]

I do several 941s in the course of a quarter, and for a couple of clients I am actually a consultant, paid by the hour to troubleshoot accounting and system problems. For these two clients, I actually prepare the 941 at home.

The 941 (as well as most other forms) has a place for the taxpayer's signature and the preparer's signature. As a consultant, I take full responsibility for the numbers, verify deposits, and sign in the taxpayer's slot. As this work is done at home, it is not timely to procure the signature of the owner.

Am I required to sign as the preparer as well?

(I expect many of you to derail the question and tell me of the horrors in liability and that I shouldn't do it. But a Yes or No to the question will suffice)

[BHoffman]

I vote Yes.

[ChEAr$]

First of all, you must sign as preparer, since you prepare the return for money.
That is I guess you do! (grin

But signing the 941 instead of the client? That's a big no no in my book. Maybe if I
had a POA on file for the year I would, but you (nashville) didn't say anything about that.

BeWARE!

[S T]

Payroll Tax Returns

I also, vote you have to sign as "paid preparer" - and I don't like signing on behalf of the taxpayer - but as Harlan pointed out, have with POA on an emergency basis.

See if you can opt for electronic filing - that might assist in solving the dilemna. You have to register for the efile of the forms 941 - and taxpayer attests to and an PIN# is issued. I have converted most all of my payroll clients to this and it is "wonderful".

Sandy

[ChEAr$]

I would love to use efiling for 941's, esp since I'm convinced to the virtues of efiling, having
done so for 1040's since 1989. However, the drawback is that you have to buy third
party software to do so.

[S T]

My payroll clients

Are all on Quickbooks - so it is already paid for and it does work pretty seamlessly. So far so good

Of course if you are preparing payroll and payroll tax returns not using QB - you can always pass those charges for 3rd party onto the client.


Sandy

[Corduroy Frog]

First of all, you must sign as preparer, since you prepare the return for money. That is I guess you do! (grin
BeWARE!

Yes and No ChEAr$. Nashville works as a consultant with primary duties quite remote from payroll tax preparation, and only prepares the 941 in the course of other accounting-related duties. This client provides some 400 hrs/yr work. Of course, he is registered as an EA and is obligated to follow cir. 1230.

Thanks to Ms. Hoffman, Sandy and others as well for responding.

[oceanlovin'ea]

e filing

I prepare 941's for a few clients. But I file them electronically so I don't have to have their signature.
You can file form 8655 to be a reporting agent for the company. That gives you the authorization and you won't need their signature on the returns and they can be electronically filed.

Linda

[oceanlovin'ea]

e filing

For the people that I prepare 841's, I have filed a form 8655 to be a reporting agent. Then you file electronically. All is well. You aren't signing their name on anything.

Linda

[ChEAr$]

Yes and No ChEAr$. Nashville works as a consultant with primary duties quite remote from payroll tax preparation, and only prepares the 941 in the course of other accounting-related duties. This client provides some 400 hrs/yr work. Of course, he is registered as an EA and is obligated to follow cir. 1230.

Thanks to Ms. Hoffman, Sandy and others as well for responding.

Well then, if you are an employee and receive a W2 form for your 400 hours, then
you do not sign as paid preparer. But... if your pay is on a 1099misc, I would
advise you sign as paid preparer.

[ChEAr$]

For the people that I prepare 841's, I have filed a form 8655 to be a reporting agent. Then you file electronically. All is well. You aren't signing their name on anything.

Linda

Well that's good to know. But I'm still hung up on the fact you have to pay to play.
I spend enough money on 1040, 1065 and 1120 S software these days.