If you’re nearing the income tax filing deadline but still need help with preparation, you need to verify that any
tax preparer you consult with has the bandwidth to put in the time and effort necessary to get your taxes accurately completed and filed on time.
The credentials you should look for in a Phoenix tax preparer will depend on the complexity of your taxes. There are a few different levels of preparers. Some, like annual filing season program participants, have received some formalized, IRS-approved continuing education to ensure they can provide knowledgeable guidance to people with basic income tax preparation needs.
If your taxes are more complicated, you might want to look for an Enrolled Agent (EA). These professionals are licensed by the IRS and must pass a three-part Special Enrollment Examination to establish their proficiency in income and business tax preparation. There are also continuing education requirements for EAs.
People with the most complicated income tax or business tax needs may want to consult with a CPA, such as the CPA at H&H Accounting Services in Phoenix, to increase the likelihood that their taxes will be properly completed and filed to maximize deductions while minimizing the risk of an audit.
You can look up and verify the credentials of most tax preparers. You can check on CPA certification through the American Institute of CPAs’ (AICPA) website or the Arizona State Board of Accountancy, or verify the status of an enrolled agent through the IRS’s website.
Anyone who is paid for tax preparation services is required to have a valid Preparer Tax Identification Number (PTIN) from the IRS. In addition to confirming the tax filer has a PTIN, you may want to look them up in the IRS’s Directory of Federal Tax Return Preparers to ensure they have the credentials they claim to possess.
Some tax preparers might have focused experience with people who have certain types of income, forms or deductions. They might have worked with many past clients who have international income, real estate investment income or self-employment income and can help with your unique concerns.
If you had unusual financial circumstances this year, such as a 1031 exchange with the proceeds of a second home sale being invested into a DST, you should probably ask a tax preparer if they understand the implications and how to properly report that to the IRS in your tax filing.
Some tax preparers may work on a per-form or per-schedule basis because it ensures the amount of work they put in is aligned with the fee they charge. Others may offer an hourly rate or even a flat fee based on specific services.
Problems can arise if you’re told one price upfront, but the tax preparer discovers additional forms or schedule requirements as they begin preparation. Be sure they are transparent about costs during your consultation.
Also, keep in mind that credentials can have a dramatic impact on the fees involved. The income tax preparation services of a CPA will cost more than an EA, and an EA will cost more than an annual filing season program participant.
All reputable tax preparers should offer electronic filing services. The service is required by the IRS for any paid preparer who prepares more than 10 tax returns for clients annually. If an alleged tax preparer doesn’t offer electronic filing, you should probably look elsewhere.
If a preparer makes bold marketing claims about results, like promising that they get clients higher refunds than other tax preparers, you may want to think twice before hiring them. Every tax filer’s situation is different, and a tax preparer who is dishonest or manipulates your income or expenses in order to get you a higher return may be breaking the law and could end up getting you audited – which can be far more expensive than simply filing income taxes correctly and paying what you owe.
If you’re looking for assistance with your income tax preparation, don’t hesitate to call H&H Accounting Services. We have a number of credentialed income tax preparers with years of experience, including a CPA, and are ready to provide detail-oriented income tax preparation services. Call us today at (480) 561-5805 to get started.
