When it comes to finding a tax professional, it can be a daunting task. In fact, this can be even more complicated if you do not have much information on tax accountants and other types of professionals. Fortunately, the Internet makes finding a tax professional a simple task, and it does not take very long to find a professional in your area. The first step to selecting a tax professional is to learn about the various types of tax accountants out there.
After you learn about the types of tax accountants, you need to learn more about how each one operates. The next step towards selecting a good professional tax preparer is to figure out whose services are best for your situation. The two major categories of tax preparers that you can pick from are Certified Public Accountants and enrolled agents. Certified public accountants are licensed by the state to provide financial advice to individuals. While enrolled agents have already passed the examinations required to be a CPA. These agents have been formally approved as CPA’s and carry the same professional credentials as CPAs.
If you have a small business, hiring a certified public accountant makes perfect sense. You are paying them to handle your financial affairs, so it only makes sense that they know what they are doing. When you hire an enrolled agent, you are getting someone who has passed all of the necessary CPA exams. This will save you time, since they will be able to file your annual taxes for you and prepare any necessary documents.
Enrolled agents are professionals who have received the education to prepare tax documents for people with all income levels. This is how they have been able to achieve the title Certified Public Accountant. While they are not technically tax preparers, these highly trained professionals know what the laws are regarding income taxes. Because they have gone through all of the training and preparation to become CPAs, you will not have to worry about their errors and omissions and their mistakes on your returns.
If you are a stay at home mom or a college student, you may not need a tax pro. However, if you do a lot of traveling or if you have to deal with the IRS frequently, you may want to hire a tax pro. When you search for tax professionals online, you will see that there are many choices out there. It is important that you find a good tax professional with experience in your type of business. For instance, if you are a sole proprietor, you may not need an enrolled agent.
Find out as much as you can about the tax professionals that are offering the services that you need. Get references and ask about their track record of accomplishment. Do a background check to make sure that they are a certified public accountant and are members of the T&I board. Hiring the best tax returns is your responsibility and the best way to get the best tax refunds.