The three most qualified tax preparers include CPAs, enrolled agents and tax attorneys. These preparers are qualified to handle complex tax situations, including those involving financial and tax planning.
Which Category of Preparers Should You Choose?
CPAs: CPAs are licensed by the California Board of Accountancy and qualified to prepare taxes so long as they are in good standing. Not all CPAs concentrate on tax preparation. A CPA who focuses heaviest on tax returns is likely your best choice should you prefer a CPA.
Enrolled Agents: Enrolled agents are licensed by the IRS, are subject to a suitability check and need to pass a Special Enrollment Exam. They are required to complete 72 hours of continuing education every three years. Like CPAs, enrolled agents can represent taxpayers before the IRS.
Tax Attorneys: Usually, tax attorneys charge higher fees. Those who have a tax dispute with the IRS or a complex situation with an audit, however, might consider hiring an attorney.
Tax Preparers: These include non-licensed professionals who are subject to minimal regulation and are not required to take continuing education classes. Tax preparers usually handle straightforward returns and charge a lower fee. Should you consider working with a tax preparer, it is best to select one who is supervised by a CPA or an enrolled agent. Either can review the tax preparer’s work to ensure it is accurate.
Some considerations
Most taxpayers are best served by preparers who are available year round. Taxpayers frequently receive requests for additional information after the tax season that requires professional advice. They can also provide tax planning. (Our practice provides clients with complimentary unlimited tax-planning advice throughout the year). In addition:
• Make sure the tax preparer you choose e-files all returns. If the one you plan to choose does not e-file, that preparer is behind the times.
• Keep your records and receipts to determine your total income, credits and tax deductions. Your preparer will need them.
• Choose a preparer who uses a portal to upload and download tax documents. This limits printing, thus minimizing waste.
• The preparer you choose should be advancing with technology. A good test is to ask prospective preparers if they use screen sharing during phone appointments.
If you have questions about choosing a tax preparer, we welcome you to contact us.
Professional Tax Services is a locally-owned provider serving over 3,500 local residents and businesses. For more information, call 661-259-1967 or visit www.scvprotaxservices.com. Through their complimentary EZ2 Thrive program, they provide unlimited free tax-planning advice to their clients.