The 4 Types of Tax Helpers You Should Know
When do you need to find tax helpers? The answer to this question is when you are a complete stranger when it comes to taxes, or simply when you do not have time to do it.
Consider this as a way to outsource.
It helps you save your time, too, especially if you are a busy business owner.
1.
Tax preparers Usually, you will find that these experts have the least amount of training of all the 4 types.
You will also notice that they work part-time.
This is because they do not operate on a licence or adhere to any professional body regulations.
Why are they ideal? If you are running low on funds, getting a preparer is a good idea as they are cheaper.
This can also apply if you do not have a complicated tax situation (simple tax management).
Of course, a disadvantage is you might stumble upon preparers who do not know much more than you do.
2.
Enrolled agents Call them 'EA'.
These professionals have to go through the eyes of 'IRS' before earning the profession of enrolled agents.
They also require a licence to operate.
These people would also have to undergo a longer timeline and complexity when it comes to training.
'EAs' would also have to continue their education along the way.
Who should get an 'EA'? The answer is if you have a slightly difficult and complex tax situation.
You should also expect a not-so-complicated tax advice but more advanced than the usual preparers.
Certified public accountants ('CPA') Certified public accountants are people that go through much more training and specific exams to earn their 'CPA' title.
They also must maintain their credential throughout the year by attending classes (to educate themselves).
How do you know if you need to hire a 'CPA'? The answer is obvious if you are a business owner and are very busy all the time.
The catch is, you need not require their consultation every year.
For example, if your tax situation stabilizes next year (more simple), you should "downgrade" to an 'EA'.
You should also try using tax software to manage your taxes at this point.
Tax attorneys As the title suggests, you would want to get a tax attorney if you have some legal issues and very complicated tax problems.
Note that the service charged by tax attorneys is very expensive.
A typical consultation per hour ranges from $200 to $300.
Consider this as a way to outsource.
It helps you save your time, too, especially if you are a busy business owner.
1.
Tax preparers Usually, you will find that these experts have the least amount of training of all the 4 types.
You will also notice that they work part-time.
This is because they do not operate on a licence or adhere to any professional body regulations.
Why are they ideal? If you are running low on funds, getting a preparer is a good idea as they are cheaper.
This can also apply if you do not have a complicated tax situation (simple tax management).
Of course, a disadvantage is you might stumble upon preparers who do not know much more than you do.
2.
Enrolled agents Call them 'EA'.
These professionals have to go through the eyes of 'IRS' before earning the profession of enrolled agents.
They also require a licence to operate.
These people would also have to undergo a longer timeline and complexity when it comes to training.
'EAs' would also have to continue their education along the way.
Who should get an 'EA'? The answer is if you have a slightly difficult and complex tax situation.
You should also expect a not-so-complicated tax advice but more advanced than the usual preparers.
Certified public accountants ('CPA') Certified public accountants are people that go through much more training and specific exams to earn their 'CPA' title.
They also must maintain their credential throughout the year by attending classes (to educate themselves).
How do you know if you need to hire a 'CPA'? The answer is obvious if you are a business owner and are very busy all the time.
The catch is, you need not require their consultation every year.
For example, if your tax situation stabilizes next year (more simple), you should "downgrade" to an 'EA'.
You should also try using tax software to manage your taxes at this point.
Tax attorneys As the title suggests, you would want to get a tax attorney if you have some legal issues and very complicated tax problems.
Note that the service charged by tax attorneys is very expensive.
A typical consultation per hour ranges from $200 to $300.
