Picking a Tax Preparer

As we move into tax season many American Taxpayers have to decide how to complete and file their tax returns. A recent research project indicated that a Majority of Americans Would Fail Tax Quiz. So if you don’t want to take the time to study and learn the tax code for this year what are your options?

 

1.       Hire a Certified Public Accountant (CPA) – By hiring a CPA you are getting a professional with at least a Bachelors degree and 150 hours of college credits who has passed a 4 part comprehensive exam including tax issues. Additionally a CPA must have 2 years of experience in the field prior to being certified by the State of Arizona. CPA’s are required to complete 80 hours of continuing professional education every 4 years.

2.       Hire a Tax Attorney – Tax Attorney’s have a J.D. Degree from an accredited law school and have passed the bar exam in the State of Arizona.

3.       Use Tax Preparation Software – Many companies offer various types of tax preparation software that can be used to complete an individual 1040 tax return. Some knowledge of taxes and computer literacy is required.

4.       Hire an Enrolled Agent (EA) – There are no education requirements for becoming an enrolled agent. An individual can become an enrolled agent by having worked for the IRS for 5 years or by passing an exam administered by the IRS. An EA must complete 16 hours of continuing professional education each year.

5.       Hire a Retail Tax Preparation Service – There are no education, experience or examination requirements for working at a retail tax preparation company, though most companies require new tax preparers to attend 40 hours of training on taxes. There are no continuing professional educational requirements for retail tax preparers.

 

A CPA, Attorney or EA can practice before the IRS and represent a taxpayer in the event of an audit or other issue with a tax return. Individual taxpayers can also represent themselves in dealing with the IRS.

 

Robert K Minniti, CPA, CFE, Cr.FA, CFF, MBA

www.minnitiaccounting.com

www.linkedin.com/in/robertminniti