{"id":13846,"date":"2025-01-17T11:26:00","date_gmt":"2025-01-17T09:26:00","guid":{"rendered":"https:\/\/seoblog.taxback.com\/?p=13846"},"modified":"2025-02-17T11:54:36","modified_gmt":"2025-02-17T09:54:36","slug":"the-right-j1-tax-agent","status":"publish","type":"post","link":"https:\/\/www.taxback.com\/blog\/the-right-j1-tax-agent\/","title":{"rendered":"\u2018What happens if I pick the wrong tax company for my J1 tax return?\u2019 You might be stuck with fines & penalties"},"content":{"rendered":"

Why who you trust with your taxes really matters<\/em><\/p>\n

Each year thousands of students from around the world visit the US on the J1 Work and Travel program hoping to experience the American way of life.<\/p>\n

Of course, if you work in America you\u2019re going to have to pay tax. And what\u2019s more, everyone who visits the US on a J1 visa is required to file a tax return with the IRS. It\u2019s the law. But it\u2019s not all bad news! Many students are entitled to a tax rebate and the average US tax refund with Taxback is $800.<\/p>\n

The prospect of filing a tax return can be extremely daunting for a lot of people. So it makes sense that many people seek\u00a0help with completing their J1 tax return<\/a>. But what happens if you don\u2019t enlist the right help?<\/p>\n

\"usa<\/p>\n

There are many dubious tax companies out there who boast about how much they save their customers on their tax bill or claim they can retrieve inflated tax refunds.<\/p>\n

However, it\u2019s important to ask yourself – are they really the best people to handle your tax affairs? After all, if you choose the wrong tax company, and incorrect information is submitted on\u00a0your tax return<\/a>, you will be seen as fraudulent by the IRS and you may have to pay fines and penalties.<\/p>\n

Students should proceed with caution and choose the correct and legal route!<\/p>\n

If you choose a legitimate tax agent like Taxback you can still receive a tax refund, while also remaining compliant with the IRS.<\/p>\n

1)\u00a0<\/strong>It\u2019s you who will be held responsible\u2026 not the dishonest company<\/strong><\/h2>\n

Filing a fraudulent tax return is a crime. If you are caught you will have to pay penalties and interest.<\/p>\n

And the worst part is you\u2019ll probably not even be aware that any laws were broken.<\/p>\n

It doesn\u2019t matter if you do it yourself, or a dishonest company does it for you, if a fraudulent tax return is filed on your behalf, it is you that will be held responsible. \u2018Not knowing\u2019 will not be considered as a valid excuse by the IRS.<\/p>\n

In fact, some less than reputable companies actually complete and sign the tax return in your name! In other words, there is no way for the IRS to tell that the return was not filed by you.<\/p>\n

The average US tax back we get for J1 students is $800<\/strong><\/p>\r\n

GET STARTED<\/a><\/p>\n

 <\/p>\n

2)\u00a0<\/strong>The benefits of picking an agent with proper qualifications and experience<\/strong><\/p>\n

When you are picking a tax company for your J1 tax return, the best place to start is by asking lots of questions. And not just about pricing or fees.<\/p>\n

The first key question you should ask is \u2018does this company have the necessary qualifications to competently complete my US tax return correctly?\u2019 The majority of disreputable companies do not employ qualified tax agents. Beware!<\/p>\n

Ask the company if they employ US tax qualified professionals.\u00a0US tax matters<\/a>\u00a0can be quite serious and complicated so you want to ensure everything on your tax return is by the books.<\/p>\n

Investigate if the company have a PTIN? The PTIN is a paid tax preparer identification number and this is issued by the IRS and should be included on each tax return filed by the preparer.<\/p>\n

A PTIN means that the responsibility for the\u00a0tax return preparations<\/a>\u00a0is with that person and is based on the information you provided.<\/p>\n

Some disreputable companies will ask you to sign and complete a blank 1040NR Form. You should avoid this at all costs. Why? Because they can then file anything they want on your tax return and it will be you who is responsible.<\/p>\n

You\u2019ll also need a company that is willing to help you throughout the entire filing process, not just a company that will file the return and run. Ask yourself, if an issue arises with your tax return, do you really want to be the one who deals with the IRS?<\/p>\n

If you need to call the IRS from overseas, it can be very time consuming and expensive. In fact, during high season, the average waiting time on the IRS phone is 38 minutes. This is why it\u2019s important your tax preparer can fix any issues that may arise..<\/p>\n

\"tax<\/p>\n

3) You could be claiming reliefs and credits that you are not entitled to<\/strong><\/h2>\n

One of the main reasons that certain tax companies advertise inflated refund figures is because they are claiming expenses and reliefs for their clients that they are not entitled to. As a result, their clients not only received a lower refund but get fined for filing fraudulent tax returns.<\/p>\n

The\u00a0American Opportunity Tax Credit<\/a>\u00a0(AOTC) is a good example of this. Some dishonest companies have been telling their J1 clients that they are entitled to receive this credit as a \u2018$1000 bonus\u2019. However, this is false.<\/p>\n

The AOTC is only available under certain strict conditions.<\/p>\n

Firstly, a J1 visa holder can not avail of AOTC unless you are in your third year in the USA and considered a resident for tax purposes. You must also pass a Substantial Presence Test \u2013 e.g. you must be physically present in the United States (U.S.) on at least:<\/p>\n