The tax processing outsourcing
dramatically changed and expanded. The worth of outsourcing this service is
increasing with the increase in the cost of mainland tax service.
Outsourcing tax-return preparation
offshore involves partnering with
an outsourcing facilitator that provides the Internet interface and the
access to overseas expertise, such as CAs in India, needed for offshore
outsourcing. The trend of outsourcing preparation of income tax returns
overseas, particularly to India, began about five years ago and shows no
signs of abating. Its popularity has grown as tax practitioners have come to
appreciate its advantages.
The basic process of tax outsourcing involves six steps :
- The outsourcer gathers the client's tax information and scans it into
- The outsourcer uploads these files to the facilitator's website.
- The facilitator encrypts the files and makes them available to the
outsourcing partner in India.
- The outsourcing partner prepares and reviews the return, and then
posts the return, workpapers, notes, and reconciliations to the
- The outsourcer downloads the completed return and documents from the
- The outsourcer reviews and signs the return, and forwards it to the
client for filing.