Types of Tax Experts and When to Use Each One

With so many types of tax professionals some people have a hard time understanding when each one can help them out. Although all tax professionals offer benefits, some are better for particular situations. It is imperative that you hire the proper person for the task that you are trying to accomplish.

Below are four types of tax professionals and when you should consider using each one:

1. Tax preparer. Generally speaking, a tax preparer is who you want to see if you simply need help with filing your return. Most of them can help with both individual and company returns. Of course, this is something you want to check on if you are in need of somebody to help with your corporation. Many tax preparers are seasonal workers. For this reason they do not often times know as much as some other professionals.
2. Certified Public Accountant (CPA). To become a CPA a person must have a college degree in accounting or a related field, or take the proper educational courses – this is not the case to become a tax preparer. Additionally, a CPA must pass a state exam for the ability to practice. There are many things that a CPA can help with including tax return preparation, representing clients during an audit, and certifying audit statements. Also, they are a good choice for corporations in addition to individuals.
3. Enrolled agent. To become an enrolled agent a person must pass an exam that is administered by the IRS. When it comes knowledge of tax code and related laws there are not too many people who know more than enrolled agents. While an enrolled agent cannot perform audit reports, they have the ability to represent clients during the audit process. This is the type of tax professional that you want on your side if you are audited – many of them worked for the IRS in the past.
4. Tax attorney/Tax Lawyer. If you are in serious trouble with the IRS a tax attorney can assist you. For instance, income tax evasion cases need to be handled by a qualified attorney. Along with this, tax attorneys can also prepare returns, represent clients during an audit, and defend them in the court room.

Overall, there is more than one type of tax professional. The four above are most common. Again, they include: tax preparer, certified public accountant, enrolled agent, and tax attorney. All tax professionals have something to offer. The one you choose should be based on your tax situation. The services we offer are from a tax team that is composed of all of the above tax professionals to handle simple tax filings to the most complex ones while ensuring the most efficient and cost effective solutions for our clients. So if you are unsure of what professional would be best for you, it doesn’t matter, we can handle all tax problems.