While tax software programs make it easier to file your taxes, they haven’t put Certified Public Accountants (CPAs) and other personal tax preparers out of business. Having someone professional handle your taxes still pays, especially if you have complicated transactions or need to use complex programs.
Preparing and Filing a Tax Return
Whether you’re filing taxes or hiring a professional, the process is the same. You’ll need to understand what deductions and credits you can take, and you should also have your tax forms ready to hand.
Your tax pro will want to meet with you in person or online to ask questions and get a full picture of your tax situation. This includes a look at your current and previous years’ tax returns and all documents related to your income and expenses.
The IRS offers a directory of verified professionals if you’re looking for a tax preparer. You can also contact the Better Business Bureau to see if any complaints have been filed against a particular preparer. Make sure to choose a preparer who is trustworthy and a good teacher, such as a RamseyTrusted professional. They will help you navigate the complexity of tax laws and maximize your refund. They will also ensure that all the information on your return is accurate.
One-Time Event
Tax preparation can be a complicated task. It requires gathering receipts and documents and completing tax forms. Many taxpayers seek professional assistance from an accountant, attorney, or enrolled agent. Others prefer to do their returns using self-prep software. Regardless of who prepares the personal tax preparation, all preparers must be trustworthy (because they will be given private financial information) and understand the tax laws.
To become a qualified tax preparer, an individual must complete a training program and pass a background check. In addition, they must have a PTIN and an EFIN to file returns electronically. An EFIN is an Electronic Filing Identification Number, and it is used to identify the preparer’s firm.
Service
During your appointment, the preparer will use the intake form and documents to complete your return accurately. They will also utilize software to help them complete all the necessary forms and schedules for your return. Typically, the preparer will also e-file your tax return for you. Contact us for more information about the services of a professional tax preparer.
It is important to shop around for the best services. Be sure to get pricing upfront, as fees can vary. It is also a good idea to ask for an estimate based on the complexity of your return. Only work with a preparer who charges an hourly rate, which can be a red flag.
Professionals can also offer better support than consumers because they often have access to more advanced software. This means they can quickly scan your information and properly organize line items. They can also explain your tax situation and future goals in more detail. Communication skills are a must for any preparer.
Profession
Whether you work as an independent tax preparer or as a staff member in a firm, it is important to have strong professional qualifications. It would help if you had to understand local, state, and federal tax laws. This will help you determine the best way to file your clients’ returns. It is also a good idea to take courses in accounting and taxation at a local technical college or vocational school.
Before preparing taxes, you must register with the IRS and get a tax preparer identification number (PTIN). You must pass a suitability check to ensure that you do not have unpaid tax debts or a criminal history. Licensed attorneys, CPAs, and enrolled agents have more advanced requirements.