Partners Review Tax Returns
Candace and David review the tax returns, regardless if the preparation is done in-house or with outsourced preparers.
FAQ Topics
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Outsource Preparation - Frequently Asked Questions
When talking about outsourcing the preparation of an individual tax return, many questions quickly come to mind. We partner with our tax return software provider and the FAQs below deal with security of your data, how the process works and other items. Feel free to contact us if you still have questions! Also, you can read more about our outsource preparation in the resource page.
If my tax return is outsourced, who reviews it?
What type of tax returns can be outsourced?
How is my business return affected by outsourcing?
Where are the outsource employees located?
How is my data safe if my return is outsourced?
Where is my tax return prepared when using outsource preparation?
Do I Have to Use Outsource Preparation?
Do Other CPA Firms Use Outsource Preparation?
Are your outsourced prepares subject to SOC2 certifications?
Is my return prepared poorly because it is outsourced?
How will I know the status of my return?
Do I have to sign the Form 7216 Consent to let you outsource my preparation?
Is my data captured and going to facebook like Tax Cut and others were reported as doing?
Tax Return Types We Outsource
Currently, we only outsource individual income tax returns, which are completed on Form 1040 and the various 1040 schedules. We do not outsource business returns, trust & estate returns or non-profit returns at this time.
Outsourcing Effect on Business Returns
We are preparing business returns as we always have. This means the business returns are prepared and reviewed in-house. If your business is a Schedule C, E or F, then it is part of your individual return (Form 1040) and would be subject to outsource preparation.
Location of the Outsource Employees
CCH hires employees in India that prepare these tax returns. CCH performs background checks and trains these employees the same as they do their US employees. See the questions about security and other items to learn more.
Data Safety and Security with Outsource Preparation
First, your data never leaves the server it is currently stored on. It resides in the same place where we have been preparing your tax return and CCH provides us with the security of your data. Second, the outsource employees cannot ever bring electronic devices to work, and coupled with their training and background checks, provides a high level of security. Finally, there has not been a breach of personal or secure data since CCH begin providing CPAs with this service.
Tax Return Preparation When Using Outsourcing
The outsource preparers use the same tax software that we do, and access only the return that they are working on and only after we grant them access to the return. All the preparation is done on our US servers and no data leaves the United States.
Is Outsource Preparation Required for My Tax Return?
The short answer is, no. You have a choice and can opt-out of outsource preparation and ask us to prepare your return with our local staff. Because outsource preparation provides us with a great deal more efficiency and because we are preparing all business, trust & estate and non-profit tax returns with our local staff, there is a premium added to your return if you choose local staff. This premium depends on the return and the workload that we have when we prepare your return.
Other CPA Firms Use of Outsource Preparation
Many of the large national CPA firms have been using outsourced preparation for tax returns for a long time. There are articles about outsourcing and the Big 4 CPA firms from 2020 and earlier. We have chosen to follow in their footsteps so that we can more efficiently complete your work prior to the tax deadlines.
Do Our Outsourced Preparers Received a SOC2 Certification?
Yes. SOC2 reports are outside audits of internal controls. The national payroll companies such as Paychex and ADP obtain SOC2 reports to show that their internal controls are strong and operating as they should. Xpitax, the outsource entity from CCH, receives an annual SOC2 certification report.
Are Outsourced Tax Returns Prepared Poorly?
No. The outsource preparers know the software, most likely better than we do! They are also continually educated in tax law and other items necessary to provide a quality tax return. But even then, Candace and I review all returns and adjust them, if we feel it is necessary, to properly report your taxable income and compute your tax liability.
How Will I Know the Status of My Return?
We are able to see the status of your return throughout the process, just like we talk with our local staff. The outsource preparers can leave us questions, comments or ask for additional information, to which we respond. When they are finished preparing your return, we get notificed and review the workpapers they created from your documents and the completd tax return.
Do I Have to Sign the Form 7216 Consent to Let You Outsource My Preparation?
Yes. The IRS has specific language which we cannot change and requires that obtain your signature before we outsource your preparation. Without your signed consent, we will be forced to prepare your return using our local staff and charge you a premium.
Secure Data Unlike Reported About Tax Cut and Other Tax Software
Tax Cut, by H&R Block and other tax software web sites were reported in November 2022 as having captured users data, like a social security number and income information, and having sent it to facebook. The report indicates they used a 'pixel' to capture and send the data. Obviously, this is a massive security risk. At Knoble Ingle we do not use that capture and send technology on our website. Any information you send is encrypted as it comes to our portal system. The same is true of our cloud-based tax software. None of your data is captured and sent to social media or other public platforms. Outsourcing does not add any complexity to this security we have in place, because your tax return is processed in one place and does not move.