Even though you might not yet have all your tax documents, it is not too late to begin looking for someone who can prepare your tax return. There are many tax preparers out there, but not all of them are the same. When shopping around for tax preparers, be sure to ask the following questions:
1. Which tax preparer should I choose? Enrolled agentsTax preparation is done by many options, including certified public accountants and CPAs (certified public accountants), as well as commercial firms and seasonal tax preparers. Only EAs, CPAs, and attorneys are qualified to represent taxpayers before the IRS. Unqualified preparers can save you money, but you could end up paying more tax if they are not familiar with the current, legitimate tax deductions or credits.
Although many states don’t have special licensing laws to tax preparers in their state, enrolled agents are authorized by the federal government. They are “agents”Because they can act as taxpayers in IRS collections, audits and appeals. An extensive exam administered by IRS to earn an enrolled agent credential covers all aspects of tax that affect individuals, businesses, and how to represent clients.
2. Are they up to date and are they knowledgeable? To maintain their membership in the National Association of Enrolled Agents, members must complete 30 hours of continuing education every year. This is more than the IRS licensing requirement for 24 hours per annum. EAs must continue to learn about the latest tax laws and regulations. Many EAs have extensive experience in financial planning, tax and estate planning, trust services, small business consulting, and many other areas.
3. Does the tax preparer have to adhere to any ethical standards? U.S. Treasury Department Circular 233, which sets forth the standards for professional conduct, is mandatory for all enrolled agents. EAs who break Circular 230’s provisions may lose their licenses or be disqualified from practicing. Before they can receive their licenses, EAs must pass extensive background checks.
4. Which are your needs? Are you certain that you’re getting all the tax credits and deductions you are eligible for? It might have been a while that you last filed a tax return. You might be one of millions of Americans who has started a new business. This is your first business tax return. An excellent resource for anyone looking for up-to-date information about tax-related issues, enrolled agents prepare millions upon millions of tax returns every year.
NAEA can be reached at 1-800-424-4339 or via the NAEA website. www.naea.orgFind an EA qualified in your area
