Taxes are a huge part of everyone’s financial life. Therefore, it is important to work with a tax professional you like and trust. Here are a few points to remember. First, every tax professional that does 10 or more paid returns per year for compensation must be registered with the IRS and be assigned a Preparer Tax Identification Number or PTIN. If you have doubts about your preparer, ask to see their PTIN. This year tax professionals can belong to the Annual Filing Season Program. In this voluntary IRS program preparers need to complete 16 continuing education credits. Again, ask your professional if they are participants. An Enrolled Agent (EA) is a professional that is able to represent clients in front of the IRS. Besides annual continuing education credits, an EA needs to take a three part, nine hour long test covering ethics, individual and business taxes. This designation is awarded by the IRS. A Certified Public Account (CPA) has expertise in both taxation and accounting, so they are especially helpful to businesses. Attorneys can also prepare taxes, and are needed when there are legal issues involved, such as fraud. Finally, you can be a tax preparer! With the help of good tax software, you can do your own taxes and e-file them from your own home. But- don’t do a paper return. Paper returns take longer to process, and increase the chance of errors as it is transcribed to the IRS software. The IRS wants everyone to e-file, this process is more efficient and taxpayers receive their refunds sooner. If you do your own taxes remember to give yourself plenty of time and be patient with yourself. Mary Lawless, EA Tax Team 651-343-0234
