Hiring a tax professionalIt is a sound investment. However, you need to be aware of what to look out for. A enrolled agent (EA), can help you meet the requirements. Enrolled agents are the only federally licensed tax specialists who have unlimited rights and privileges to represent taxpayers in front of the IRS.
“Enrolled agents, America’s tax experts, make sure their clients take advantage of all the credits and deductions they’re entitled to,” says National Association of Enrolled Agents President Betsey Buckingham, an enrolled agent with David C. Murray & Co., in Troy, OH. “And, with the IRS’s increased emphasis on enforcement, it’s more critical than ever to have an EA making sure your taxes are done correctly.”
Buckingham points out that the IRS has the highest status for enrolled agents. These individuals must follow ethical standards and attend 72 hours of continuing learning every three years in order to attain this elite status.
While some taxpayers might think that filing their own taxes is cheaper, it could end up being a costly mistake. Single adults at the start of their careers may find it easy to calculate income and expenses, and file taxes can seem relatively simple. The tax code gets more complicated as people have more things in their lives, such as children, marriages, investments, buying homes, starting businesses and having children. You could be sent a letter or a bill by the IRS if you forget to include an income item in your tax return. This can happen months, or even years, after you have filed it. You could even be subject to a penalty and interest from the original due date.
How about state taxes? What happens if you move to another state? What if you are a resident of one state and work in the other? Working with an EA offers another benefit. EAs are eligible agents that have been licensed by the federal government, not individual states. This means they can practice tax return preparation anywhere in the United States.
A final tip for hiring the right tax professional is to make sure you are specialized in tax planning and taxes. This will give you the best chance of saving money and helping with your finances next year. Do not wait to find the right tax professional. Make sure you do it before the year is over and that your enrolled agent starts working with you immediately.
Visit this site to learn more about enrolled agents and how you can find one in your area. www.naea.org.
