If you are getting worried about what a tax professional can do for you, you have come over to the right place. According to the IRS, a more significant percentage of the US population depends on paid tax preparers handling their returns. Whether you decide to turn towards a tax professional, check out the following tips to discover the most qualified person for you.
Types of tax preparers
You can take guidance from your friend or neighbor in preparing an IRS return. Otherwise, reach out to the CA tax agency or the professional tax preparers registered with the IRS. Depending on the qualification and certification, the paid tax preparers are fallen under the following categories.
Enrolled agents: These eligible preparers usually pass a three-course special enrollment examination where they have to prove their excellence in deferral taxation. They have to pursue 72 hours of continuing education every triennial period. You can trust them for handling your tax matters and help you represent before the IRS.
Attorneys: These professionals pass the bar exam and earn a law degree. They get a license under the state bar association for law practicing. They have to continue their education for acknowledging different codes of ethics. Attorneys can best handle any tax issues involving litigation. They are also entitled to handle criminal activities in tax preparation.
PTIN holders: They must hold the preparer tax identification number (PTIN) but can’t have the credentials to perform in annual filing programs. No professional board, state authority, or IRS take them under surveillance; neither have they possessed any authority of client representation before the IRS.
CPAs: These professionals pass the regular CPA examination and get a license under the state board of accountancy. Certified Public Accountants have to continue their education along with practicing tax preparation. You can contact a CPA for handling special tax affairs, like delinquent returns. Besides these, they have expertise in audit and IRS appeal process.
How much can a tax preparer cost you?
The more credential your appointed tax law firms in Los Angeles have, they will charge you for preparing taxes. If you go by the rules, you can have to pay the highest fees to the attorneys, CPAs come next and enrolled agents after that. Preparers without any special designation will charge you the lowest. Remember that tax fees vary from location to location, designation of the preparer, and your return’s nature. If your annual earning is below $72,000, go by the free file program of the IRS to prepare your federal tax return for absolutely free. You can expect a fixed rate from the majority of preparers.
Is it possible to proclaim a tax preparer for the improper act?
According to IRS, yes, you can. Since the tax preparers are professional, they expect to be well-mannered and honest. If you find a tax preparer doing misconduct, you can report it to IRS for further investigation. The following are treated as wrongdoings of tax preparers:
- Generating false deductions and expenses to avail a large refund
- Changing your return documents without informing you
- Return filing without your consent
- Manipulating dependents for more considerable compensation
- Misplace your refund
Invest enough time to research your appointed tax preparer and gather detailed information to check their competency in the IRS issues. Always receive a copy of your submitted files and keep the tax preparer’s PTIB number to utilize for future needs.