Tax Preparation Twin Falls

Want to escape the agony of tax preparation? Twin Falls CPAs can help

It seems that tax preparation becomes harder and more complex every year. State and federal tax entities act like they are in competition over which can become the biggest pain in the neck to individual taxpayers and businesses. You may already be one of the millions of Americans that uses a tax preparer – there are more than 1.2 million registered prepares in the US. If not, you may want to consider it. Any business large or small that does not have a professional accountant or bookkeeper preparing its taxes is taking a significant risk.

Do You Need Tax Preparation Assistance?

As highly educated and certified professionals, hiring a CPA for tax preparation is not inexpensive. There are other options for the taxpayer overwhelmed by the tax filing requirements.

You might first visit the local IRS office for help. Each office can answers questions about common tax problems and help you prepare and file the appropriate income tax forms. For information regarding the free services provided by the IRS and to locate a local IRS office call (800) 829-1040.

For low-income filers, the IRS offers links to free web-based filing software. If you do not itemize deductions or have significant investment or self-employment income, these tools guide you through the entire tax preparation process. There is no charge for filing a basic return as long as your income does not exceed a maximum amount.

Providers of Tax Preparation in Twin Falls

If you have too much income to receive free tax preparation services, there are different types of providers that charge a wide range in fees. Before hiring a tax preparer, consider the type of services you require and choose the provider that is best able to provide them at the most reasonable price. Here are the different provider types:

There are four basic types of professional tax preparers: enrolled agent, certified public accountant (CPA), attorney, and tax preparer.

Enrolled Agent

After working for at least five years as an IRS auditor, those employees can pass a government exam to become an Enrolled Agent. In addition to assisting in tax preparation, Enrolled Agents are uniquely certified to represent taxpayers before the IRS.

Certified Public Accountant

Regarding accounting issues, there is no higher authority than a CPA. If you have a complex tax status or need to certify the accuracy of your company’s financial status to a lender or regulator, a CPA’s services should be hired. Requirements to become a CPA vary by state, but all require attainment of advanced education and passing of a rigorous exam. If a CPA prepared your tax filing, s/he may also represent you in IRS hearings.

Public Accountant

These accountants generally have the education and practical experience to complete IRS forms; however, they have not passed the exam to be certified and cannot, therefore, represent taxpayers in IRS hearings. Public accountants have the skills and knowledge to perform most tax preparation tasks.

Attorney

Any attorney who has passed his or her state’s bar exam is authorized to represent taxpayer clients before the IRS. In practice, however, only attorneys with special training in tax laws and experience in IRS hearings would seek to provide such representation. For any tax issue that involves a legal question and not only financial calculations, a tax attorney who also has a CPA license is the recommended provider, although they are usually also the most expensive provider.

Tax Preparer

Almost anyone can offer their services as a tax preparer. There are no regulations to meet or certifications to acquire before one can charge for tax preparation services. While some tax preparation companies do require their employees to take basic training courses, many others require no training at all.

One should carefully consider their needs before hiring a tax preparer. If you have anything out of the ordinary about your return – itemized deductions, self-employment income, or a divorce for example – you should look for a more qualified preparer. Tax preparers can be adequate for very basic returns, but for true peace of mind, a CPA is the best solution.

The Taxpayer is Ultimately Responsible

It does not matter that a your return was completed by a tax preparation service, if a mistake or omission is made, any additional taxes, interest, and penalties owed are assessed against the taxpayer. By signing the return, you are attesting to its factual and mathematical accuracy. Even if the tax preparer offers a guarantee to pay any such fees in the event of their error, the IRS would still look to you for the money. If the tax preparer refused to reimburse you, your only recourse is a civil lawsuit.

Which is just one more reason why you should hire a CPA that you can trust.

 Posted on : August 12, 2014