Tax Preparer Need Basic Advice On Hiring Independent Contractors.

I own a solo tax preparation business that serves the clients in my area and virtually with both domestic and international tax matters and I might need independent contractors (CPAs and potentially international tax attorneys) to assist me with certain IRS/State Tax forms and schedules when I get too much work.

If I hired an independent contractor it would work like this: For each project, I would provide a Google Docs document with the client’s facts and then a Google Sheets spreadsheet with a worksheet that looks exactly like the IRS/State tax form. The only software they would be required to use would be Google Docs and Google Sheets, nothing else. This will be the only control I have over the work, because I like both apps and they make it easy to share information and worksheets. I also don’t want any independent contractors having access to my tax software in order to protect client data which is of paramount importance.

I would ask them to prepare the worksheet on the Google Sheets spreadsheet and submit it to me by the deadline. Once I receive the worksheet, I will pay them the contractor’s fee.

I will sign an engagement letter for every project to clarify the terms of each project and the deadline for submission. I will be fully responsible for filing the completed tax returns and signing them as paid preparer.

My three questions are:

(1) Does this look like a pretty clear case of an independent contractor-type relationship?

(2) What is the potential legal liability for a tax professional using an independent contractor to assist on working on just specific forms or schedules?

(3) Can I use an International Tax Attorney as an independent contractor to assist with the preparation of a specific tax form or schedule? (It will not constitute legal advice, only preparation of international tax forms as I understand there are State Bar rules about what type of services attorneys can be retained for in certain situations).

I am still going to consult with an employment law attorney, but I just wanted some basic answers of whether this is a legally sound approach, particularly in regards to question (3) about retaining the services from an international tax attorney as an independent contractor to assist with tax preparation projects as one component of a client’s tax return.

Thank you for your time and I appreciate all insight!