Preparing your taxes can be incredibly stressful. In many cases,
it just makes sense to get some help with them.
Save Me From This Misery!
When it comes time to file taxes, you can look to software or a
real live person. In this article, we are going to focus on
living people, to wit, the tax professional. You might be
surprised to learn there are different types of assistance out
there.
Tax Preparer
Generally, tax preparers have the least amount of experience
when it comes to filing taxes. Tax preparers are individuals
that are trained for the job or pick up the knack over time. An
example of a huge collection of prepares would be the people
that work at H&R Block. The advantage of using a tax preparer is
they are very cheap. Just keep in mind that you get what you pay
for.
Enrolled Agents
The IRS actually licenses certain individuals if they pass
scrutiny with the agency. Unlike tax preparers, an enrolled
agent can represent you at an audit. Enrolled agents are a step
up from tax preparers, but the quality of work and knowledge
varies from agent to agent. Some can be excellent because they
have an interest in the work and stay on top of changes. Others
are less impressive.
CPA
The Certified Public Accountant goes through a hellish process
to obtain their license. Getting licensed as a CPA requires
significant study and the licensing test is absolutely brutal.
If you have a unique or complex financial situation, you want to
use a CPA to do your taxes. In fact, you should use a CPA
throughout the year to not only prepare taxes, but plan to avoid
paying as much tax as possible.
CPAs are expensive with hourly rates in the $200 to $300 range.
They can, however, be worth their weight in gold and a few of
them are pretty heavy. When picking a CPA, you want to find a
proactive one. A proactive CPA is going to talk to you about
your life and finances. They are then going to make suggestions
to significantly lower your tax bill. The savings typically far
outweigh their fees, and you'll be glad you hired them.
So, who should you pick? The answer is entirely dependent upon
the sophistication of your finances. If you are salaried
employee earning $50,000 a year, you don't need a sophisticated
tax planner. If you are a small business owner with three
businesses, it is time to find a CPA.
About the author:
Richard A. Chapo is with
http://www.businesstaxrecovery.com -
recovery of business taxes through tax help and tax relief.
Visit
http://www.businesstaxrecovery.com/articles to read more
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