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Getting Help With Your Taxes
By: Richard Chapo
Preparing your taxes can be incredibly stressful. In many cases, it just makes
sense to get some help with them.
Save Me From This Misery!
When it comes time to file taxes, you can look to software or a real live
person. In this article, we are going to focus on living people, to wit, the tax
professional. You might be surprised to learn there are different types of
assistance out there.
Tax Preparer
Generally, tax preparers have the least amount of experience when it comes to
filing taxes. Tax preparers are individuals that are trained for the job or pick
up the knack over time. An example of a huge collection of prepares would be the
people that work at H&R Block. The advantage of using a tax preparer is they are
very cheap. Just keep in mind that you get what you pay for.
Enrolled Agents
The IRS actually licenses certain individuals if they pass scrutiny with the
agency. Unlike tax preparers, an enrolled agent can represent you at an audit.
Enrolled agents are a step up from tax preparers, but the quality of work and
knowledge varies from agent to agent. Some can be excellent because they have an
interest in the work and stay on top of changes. Others are less impressive.
CPA
The Certified Public Accountant goes through a hellish process to obtain their
license. Getting licensed as a CPA requires significant study and the licensing
test is absolutely brutal. If you have a unique or complex financial situation,
you want to use a CPA to do your taxes. In fact, you should use a CPA throughout
the year to not only prepare taxes, but plan to avoid paying as much tax as
possible.
CPAs are expensive with hourly rates in the $200 to $300 range. They can,
however, be worth their weight in gold and a few of them are pretty heavy. When
picking a CPA, you want to find a proactive one. A proactive CPA is going to
talk to you about your life and finances. They are then going to make
suggestions to significantly lower your tax bill. The savings typically far
outweigh their fees, and you’ll be glad you hired them.
So, who should you pick? The answer is entirely dependent upon the
sophistication of your finances. If you are salaried employee earning $50,000 a
year, you don’t need a sophisticated tax planner. If you are a small business
owner with three businesses, it is time to find a CPA.
About the Author:
Richard A. Chapo is with http://www.businesstaxrecovery.com - recovery of business taxes through tax help and tax relief. Visit http://www.businesstaxrecovery.com/articles to read more business tax articles.
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