Posted by LLOYD J CAZES CPA

5 Types of Tax Preparers You Need To Know

5 Types of Tax Preparers You Need To Know

The IRS does not categorically state that you need to prepare your tax return yourself. However, you need to employ the service of a professional tax preparer, for you to get the right value for your money. With the assistance of a professional tax preparer, you can earn enough tax breaks which you can use to pay the service charge and have something to keep to yourself as well. 

If you have a simple tax return then there might be no need to get the service of her tax preparer. But if you need to squeeze out all the credits and deductions, meaning you have a complicated tax return, the best option you have is to get the service of a professional tax preparer as soon as possible.

You need to verify the credibility and expertise of your tax preparer, to make sure you are in safe hands. If you fail to look out for the points that will be discussed below, you might end up paying fees you never planned. Below are the options to determine the credibility of your Tax Preparer.

1.    ENROLLED AGENTS

Agents that posses the highest IRS awards are known as enrolled agents. Before a tax preparer can be qualified and maintain the title of an EA, you must have passed the IRS examination and passed the background check of the IRS. EAs can represent the client anytime and any day with the IRS because they have an unlimited practice right. The EAs are known to clean up many tax mess no matter how complex the tax case may be.

2.    TAX ATTORNEYS

Tax attorneys are the most expensive amongst all other tax preparers. The service of a tax attorney can be essential when you are faced with a case the IRS. They can be your only saving grace when you find yourself being audited by IRS or when you are being accused of tax return fraud.

3.    NO CREDENTIALS TO SHOW YEARS OF EXPERIENCE

Except you are seeking to get the service of a cheap tax preparer, that is when you do not need to check your tax preparer credentials. If you are thinking of hiring an unexperienced tax preparer, it would be best for you to file your return yourself and save cost.

There are some states in the united states that require that tax preparer meet some certain educational qualifications before they can practice. An experienced tax preparer gives you a soft landing especially when you have a complicated tax return.

4.    CERTIFIED PUBLIC ACCOUNTANTS

CPAs are certified in the state level instead of the federal level. They are often your best shot when you have a complicated tax situation. The sole objective of all CPAs is in accounting, but a large number of them are into tax planning and preparation. CPAs can prove to be very useful when you need to minimize your tax bills by trying a little trick or when you have a worrisome tax return. The primary reason why CPAs stand out amongst other tax preparer is that they can be your tax preparer and also double as your financial consultant for your organization. The CPA’s also have unlimited rights to practice before the IRS. It is always advisable to do a background check on the CPA to confirm if he or she is indeed a tax specialist or not before allowing them to handle your tax return.

5.    YEARLY TAX FILING SEASON PROGRAM PARTICIPANTS (AFSP)

The IRS organizes a yearly tax filing season program which requires the participants to meet some specific education qualifications which include a refresher course with a test, to register each year. These tax preparers are roughly on a level with the certified state tax preparer. Participants in the AFSP have a slight opportunity to represent their client before the IRS.

HOW THEN DO I FIND A TAX PREPARER?

Once you have finally concluded on the type and level of tax preparer you want to hire. You can simply check for the tax preparer that fits your choice from the IRS tax preparer directory so as to find a tax preparer that is very close to you. 

LLOYD J CAZES CPA
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