A Tax Preparer is defined as any person (including a partnership or corporation) who prepares for compensation all or a substantial portion of a tax return or claim for refund under the income tax provisions of the Internal Revenue Code. Certain states require that persons or companies preparing taxes for others secure a surety bond to protect from fraud or loss.
Just like all surety bonds, a tax-preparers bond is an agreement between two parties. This agreement is always that the individual that is insured by the surety bond, in this case the tax-preparer, will be able to pay any fees, fines, and other charges for which they are responsible. If the tax-preparer renders services in a way that causes damage or expense to the state or public, a claim can be filed against the bond, which is backed by a surety bonding company.
Many tax-preparers working in South Carolina need these surety bonds in order to comply with the local government. It is crucial that the public of South Carolina know that their tax-preparers have this agreement in place, ensuring that they will work in an ethical manner and provide protection for their clients.
If you are in need of a surety bond for your tax-preparation services, contact us to learn more about your options.