You need to be able to comprehend complex tax codes and understand deductions and credits without even having to scratch your head. Most people call a tax professional to feel relieved that the burden has been lifted for another year.
It is a smart investment to hire a tax preparer, but you need to know what to look out for. All enrolled agentsUnlike CPAs and lawyers, who often focus on other areas, enrolled agents are able to specialize in taxation. In fact, only enrolled agents, federally licensed tax practitioners, specialize in taxes. Additionally, they have unlimited rights to represent taxpayers at the IRS. This is particularly relevant since audits have increased exponentially.
“Enrolled agents, America’s tax experts, make sure their clients take advantage of all the credits and deductions they’re entitled to, and minimize their tax burdens,”Frank Degen, President of the National Association of Enrolled Agents and also an enrolled agent in the U.S. Tax Court Practitioner, is said to be the president of The National Association of Enrolled Agents. “And, with IRS’s increased emphasis on enforcement, it’s more critical than ever to have an EA making sure your taxes are done right.”
Degen points out, too, that the highest status granted by the IRS to an agent is that of an enrolled agent.
For adults at the start of their career, expenses and tax filing are easy. However, tax codes get more difficult to understand as adults have kids, invest in properties, and start their own businesses.
Even if you are able to keep up with your state’s tax code this year, it is likely that there will be many changes. Or what if your state is changing? Another perk to working with an EA is the possibility of moving.
The federal licensing of enrolled agents allows them to practice anywhere in the nation. Other tax specialists like CPAs, attorneys, and accountants are licensed by the state. EAs also have to complete continuing education every year.
The last tip for hiring the right professional in tax is to make sure you are focusing on taxes. This will give you the best chance of saving money and preparing your finances next year. So you can be more prepared, let this year’s deadline of April 15, 2013, start to percolate now.
You can learn more about enrolled agent, including how to locate one in your local area, by visiting www.naea.org.