Tips On How To Choose A Reputable Tax Preparer?
Tax preparation of accountants and tax preparers is known as one of the most heavily regulated professions in the world which also comes with a lot of ethical responsibility. Although it is believed that the majority of the tax preparers are reputable, it is always safer to check which tax preparer are you hiring and does he or she qualify for the job or not. This is important because there are all kinds of people in the market and many of them do not follow even the basic principles of the profession.
This is why it is advised by the Internal Revenue Services that taxpayers should scrutinize their tax preparers and then hire them for the job. The same goes for hiring a tax CPA for foreign nationals because they often can’t physically meet their tax preparers.
Check The CPA’s Qualifications
When you go to a company to help you file your taxes, they will mention a number of certifications and degrees which you may have no idea of. This is why you may never know whether your tax CPA is qualified to practice before the IRS.
In order to help you solve this problem we have listed a few qualifications for you that are relevant and you should precisely check if the tax filer has them or not.
A Tax Attorney Is Whom You Need To Look For
Apparently, tax attorneys have unlimited practice right in front of the IRS. Though all lawyers are members of and regulated by a State Bar Association, the attorneys are the only ones among them that can represent you in court under the protection of the attorney-client privilege of information clause.
Certified Public Accountants
We recommended a tax CPA for foreign nationals earlier too and the reason is that a CPA is licensed by a State Board of Accountancy. These accountants have to pass a CPA examination and go through background, education, and experience checks to get here. However, not all CPAs deal in taxation, this is why it is important to hire the one who has a degree or certification in taxation because he/she can prove to be a great source for income tax return preparation, planning, or advisory services.
Enrolled Agents or EAs
This category is eligible to practice before the IRS without having any limitations bounding them which makes them great candidates to represent you. They are also the only tax practitioners who are regulated on the federal level directly by the IRS. They come forward after passing a tough examination and background checks. Their specialization is predominantly in taxation which makes them an ideal candidate for tax return preparation, tax planning, and advisory services.
Annual Filing Season Program (AFSP)
These individuals are required to complete a voluntary 18-hour continuing education program to receive the AFSP designation. The problem is AFSPs have limited rights when it comes to practicing before the IRS. If you want to get tax return preparation services or auxiliary services, then they are a good option otherwise much better options have been listed above.