Signature Requirement

[Koss]

In a different thread, BHoffman wrote:

I believe if you prepared the return at no charge, you are still obliged to sign the return.

On page 62 of the general instructions for Form 1040, it says:

Paid Preparer Must Sign Your Return

Generally, anyone you pay to prepare your return must sign it in the space provided. The preparer must give you a copy of the return for your records. Someone who prepares your return but does not charge you should not sign your return.

[BHoffman]

Thanks

Well, thank you for that! I've always believed I was required all the freebie returns I prepare for my friends and family.

[Larmil]

Non-paid preparer

My software has a place to check "nonpaid preparer".

[Koss]

Signature

There are some exceptions to the rule that you don't have to sign if you don't get paid.

Returns that are prepared through formal programs that are sponsored by the IRS, such as VITA and TCE, are signed with a special notation that indicates just that: that the return was prepared by a volunteer through an official IRS program.

And I can envision other scenarios where one might feel the need to sign the return, or might want to even if it is not required.

An accountant takes on a new client who owns a small business, and agrees to do an 1120S with four Schedules K-1, and the client's individual 1040, for, say, a fee of $1500.

Somewhere during the entire process, a Form W-2 surfaces that belongs to the client's 16 year old son who worked at McDonald's. And the accountant agrees to do a 1040EZ for the kid, at no extra charge. I can see where perhaps that return should be signed, because it could be viewed as part of the overall engagement.

Finally: if you are an unenrolled preparer, you might want to sign, say, your mom's return. If she somehow gets hooked into a full-blown face-to-face audit, you can do limited representation if you signed the return. If you didn't sign it, then technically you have no standing at all during the audit. But I think there are some IRS procedures that officially allow immediate family to assist in an audit...