Somebody with know-how and experience to guide you with your finances is known as a tax professional. They may be tax attorneys, CPAs, or enrolled agents.
Which is which?
Tax attorneys are lawyers who specialize in complex tax and estate matters, IRS dispute resolution, and difficult tax return filing. They should have either a law degree or certification as a tax law specialist.
CPAs are licensed accountants with college degrees and experience in CPA firms. Some CPAs can deal with the IRS comfortably. Their primary responsibilities are preparing tax returns and doing audit or accounting work.
If you don't require licensed representation in tax court, enrolled agents can help you. They are, however, authorized to work before the IRS as full-time tax preparers and advisors. They usually have 5 or more years experience working with the IRS, or at least passed an IRS examination.
Good tax professionals must have experience in dealing with the IRS and IRS collections, as well as the resolution of tax debts. They know about IRS laws and are updated with tax law changes.
Looking for a Tax Professional
- Referrals
- Recommendations
- Prepaid legal plans
- Audit assistance or preparer guarantee
- Advertisements
- Associations
- Direct solicitation
Things to Ask a Tax Professional
- What are your fees?
- How long have you been in business?
- Which one are you, a CPA, an attorney, or an enrolled agent?
- What are your licenses?
- Do you have experience with the IRS?
- What does your fee include?
- Do you have a privacy policy?
- Can you handle my situation?
- Do you give itemized statements monthly?
- Do you have a written fee agreement?
- Do you work by yourself or do you delegate?
- How many clients do you have?
- Can you handle tax issues?
You should feel at ease with your tax professional. You must be able to communicate with them. They must give you confidence and be the best for you. Trust is essential. |
