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Worry-Free Tax Preparation... brought to you by the professionals at Piedmont Tax Service
Piedmont Tax Service is a growing, trustworthy and professional tax and accounting provider whose experience, knowledge and skills help you feel confident that you have met your tax requirements and are paying the lowest amount of taxes allowable.
Family Owned & Operated for Over 30 Years
Member National Association of Tax Professionals
Member National Association of Enrolled Agents
How To Choose a Tax Professional
Having to fill our taxes is becoming more and more difficult every year. With the growing tax burden being placed on us by Congress, figuring out how to complete your tax returns correctly is becoming more and more important. These are basically four ways to get your taxes done: self preparation, enrolled agents, certified public accounts and unenrolled tax professionals.
1: Self preparation - This method involves you completing the forms by hand or using over the counter software. According to the IRS, it takes an average of 26.4 hours to prepare your taxes. Using software usually adds an extra 10 hours to the preparation time. Software is very good, but the result is only as good as the information that you put into it. They are good at addition and figuring the taxes, but if you enter something incorrectly or leave something off, the results will be incorrect.
2: Enrolled Agents (EA's) - are tax specialist who have passed an exam admistered by IRS, been through a background check and maintain continuing education credits in taxation and ethics in order to keep their certification. EA's as well as CPA's & attorneys are qualified to represent taxpayers in audits before IRS. They are the only tax practitioners that are licensed to practice by the IRS and they are covered by Circular 230 of the IRS code.
3: Certified Public Accountants (CPA's) - have a degree in accounting and have passed a state certification exam. They can specialize in auditing financial records, certifying financial statements and preparing tax returns. They maintain their credentials with continuing educations credits and can represent taxpayers before the IRS, just like EA's.
4: Unenrolled taxes preparers can be very qualified and reputable, but they do not carry a designation from IRS or the State. Look for preparers who have been preparing returns for several years. Large national chains use a very high percentage of first year preparers. This can be fine for very simple returns, but caution is urged.
The type of firm that you select can be very important as well.
- Large national chains are usually fairly expensive, charge you for insurance that guarantees their quality, are staffed with a high percentage of first year preparers and are usually closed during the off season periods.
- High end accounting firms are wonderful for very complex returns, but the average American doesnŐt need the expertise of a CPA. They also charge very high fees, even for simple returns. They want you to drop your information off, a data entry person performs most of the work on the return, an accountant will review the work, and then a secretary will call you to come and pick up the finished return. Meeting with the accountant is usually difficult and can cost extra. CPAŐs are very qualified accountants, but being a CPA doesnŐt ensure tax expertise. They can specialize in audit work, financial analysis or tax preparation.
- Money lenders and car lots often advertise tax preparation. Do not trust your financial records with this type of operation. They are usually not qualified to fill out tax returns and do not stay current with tax laws and requirements. When problems arise they either can't or won't help you.
- Your best bet is a smaller local accountant/tax professional that who does the work themselves and is concerned with their reputation in the area. They will offer more personal service. You will be able to meet face to face with your preparer. They should be open year round to help with any problems that arise. Look for firms that have been in business for several years.
Things to watch out for:
- Guarantees of large refunds
- Preparers who don't sign their returns (they may mark them as self prepared
- Charges that are based on a percentage of the refund
- Preparers who can't or won't explain any entry on a return
- Firms that close after April 15th.
Questions to ask:
- What is your education or experience?
- What credentials do you have?
- How do you stay current with tax law changes?
- How long have you been in business?
- Who will prepare my taxes?
- How do you charge and will you give an estimate?
- What are your hours during the off season?
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