Tell the preparer what forms you completed last year to give them a sense of what your tax needs are. Someone with life changes like marriage, children, retirement planning, a new home purchase, or college planning may also need more help,” she says. “For example, an entrepreneur or self-employed consultant may need more tax and financial planning services. “The cost of preparing a tax return will vary depending on many factors, including the complexity of the return,” says Susan Allen, CPA/CITP, CGMA, senior manager for Tax Practice & Ethics, American Institute of CPAs. The cost of preparing your taxes can vary, but generally an EA should charge less than a CPA, according to the Better Business Bureau. Notices and letters from the IRS and your state tax authority can arrive at any time, and you’ll want your tax preparer’s office to be open if that happens.Īsk for a price quote. Sometimes, tax-prep offices appear during tax season and then close once the season ends. Plus, if something goes awry, only these tax professionals can represent you before the IRS for all tax-related matters, whether it’s an audit or anything else.Īsk your tax preparer whether their office is open year-round. They’re also qualified to help you with financial planning and can give you tips that could help you reduce your taxes in the future. These preparers are especially good for complex tax planning and tax preparation. They also have an active PTIN, and must agree to specific rules of conduct (PDF). If something goes wrong with a filing, they have limited rights to represent you before the IRS.Ĭertified Public Accountants (CPA), Enrolled Agents (EA), and tax attorneys are the highest credentials that a tax preparer can possess. These are also non-credentialed preparers, however, each year they must take 18 hours of continuing education classes from IRS-approved providers. IRS Annual Filing Season Program participant is the next level up. You’ll be on your own or will have to hire someone to help you. If something goes wrong with your filing, this level preparer can’t represent you and help you deal with the IRS, unless they prepared and signed the filing before the end of 2015. A tax preparer with a PTIN-and no other credentials-is known as a non-credentialed preparer. Here are some of the important credentials and what they mean:Ī Preparer Tax Identification Number (PTIN) holder is the lowest type of accreditation the IRS provides. Whether you use an individual preparer with credentials that allow them to represent you before the IRS or a big chain, it’s a good idea to discuss the cost of representing you in case of an audit before you hire them. Prices vary depending on the complexity of the filing or the services required. H&R Block’s “File with a tax pro” starts at $80 and can be done in-person or virtually. There are many IRS designations for paid tax preparers and, ultimately, the most important things guiding your decision are the preparer’s credentials, experience, availability, and the help you can expect if the IRS requires more information from you after you file or if you’re audited.įor example, at a tax-prep chain, you’ll sometimes have to pay for additional help from a tax professional in case the IRS needs more information or if you’re audited, but you’ll likely have to opt to pay for the service when you pay for your tax preparation. The big chains employ many preparers, and if you‘re in a crunch, that could help you schedule an appointment more quickly than an individual who might be booked through April 18, tax day. Obviously, you want someone who has the right experience for your particular needs who can work at a price you can afford.
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