As a tax preparer, having a standardized checklist in place not only reduces delays and prevents missing documents, but it also enhances your overall workflow. The sample checklist found here is tailored specifically for tax preparers to assist you with running an efficient and organized business. The goal of this guide is to help minimize errors, save you valuable time, and improve your communication with your clients. To make your life even easier, we’ve included a downloadable PDF checklist that you can refer to while preparing taxes for your clients.
Checklist of documents to request from clients
Requesting a comprehensive set of documents from your clients upfront is key for tax preparers. When you have all the necessary information in advance, you can prevent certain filing errors, prepare more returns, and do your clients’ taxes faster.
Please note that the specific items on this list may vary depending on the client’s profile. This is meant to be a sample list.
Personal and contact information
Start by collecting essential personal details from your clients, including:
- Full legal name
- Social Security number (SSN) or Tax Identification Number (TIN)
- Date of birth (DOB)
- Current address (and confirm any changes from their prior address)
- Phone number
- Email address
It’s crucial to request consent for proof of identification to prevent identity theft and ensure the authenticity of the information provided. You will likely need their ID to file their taxes anyways, so this should be standard.
Dependent information
For clients who have dependents, request the following details for each dependent:
- Name
- SSNs/TINs
- DOB
- Relationship to your client (child, elderly dependent, etc.)
It is important once you have a list of dependents to verify that the individuals qualify as dependents for tax purposes. That way you can file credits like the Child Tax Credit or the Earned Income Tax Credit (EITC) correctly.
Income sources
It’s important to gather all relevant income sources, which may include:
- Form W-2
- Form 1099 (any version)
- Schedule K-1
- Social Security benefits
- Retirement income
- Investment income
- Gig or freelance income
- Tip income
- Overtime income
Placing investment income into a separate category on your list can help clarify any individual income streams. If a client can’t locate their forms but knows they have earned income, you might be able to help them locate any missing 1099 forms or documentation that may be needed during tax filing.
Deductions and credits
Make sure to request information regarding:
- Mortgage interest
- Property taxes
- Medical expenses
- Charitable contributions
- Education expenses
- Child care costs
It is also worth noting that asking for receipts for high-dollar contributions will save time during filing.
Other documents
Lastly, don’t forget to ask for:
- Any available prior-year tax returns
- Records of estimated payments and their dates
- Any notices received from the IRS or their state
Checklist of documents tax preparers should have ready
Here are the essential documents and credentials you should have:
- Preparer Tax Identification Number (PTIN)
- Electronic Filing Identification Number (EFIN)
- Relevant credentials (Enrolled Agent, Certified Public Accountant, etc.)
- Engagement letters
- Client intake forms (like the checklist mentioned above)
- Access to prior year documents and returns
- Protocols for data backup and encrypted storage
- Continuing Education (CE) certification
- Compliance forms like Form 8867 for due diligence
Best practices for client communication
Effective communication with clients is fundamental to the tax preparation process. Here are a few tips:
- Send out checklists early, ideally in late December or early January.
- Share checklists securely utilizing our client portal or TaxesToGo to protect sensitive information.
- Understand your clients’ preferred communication methods – many may prefer SMS updates or portal notifications over email.
- Provide clear instructions regarding document deadlines and set expectations to avoid misunderstandings.
By implementing these best practices and referring to the comprehensive checklist provided in this guide, you can enhance your efficiency while ensuring that your clients feel informed and supported.
