The IRS recently announced the agency will begin accepting 2023 tax returns Jan. 29, and the filing deadline will be April 15. If you need help with your tax preparation, now is an ideal time to ensure you’ve secured the services of a trustworthy tax professional.
For many people, major life changes, business ownership or simply a lack of knowledge about the ever-changing tax laws make finding a reliable tax preparer a good idea. That said, not all tax preparers have the same level of experience and training. BBB offers tips for finding someone you can trust with your finances and sensitive personal information.
First, it’s important to understand the different types of tax preparers and their qualifications. Only enrolled agents, certified public accounts and attorneys may represent their clients to the IRS on matters such as audits, collection issues, and appeals.
— Enrolled agent: An enrolled agent is a tax preparer approved by the IRS to represent taxpayers. They must either have prior qualifying employment with the IRS or pass an intensive two-day exam on federal taxation and complete a background check. To maintain enrolled agent status, they must complete a specified number of credit hours each year of continuing education in accounting methods and tax regulations. An enrolled agent may work independently or as part of a firm and specialize in specific areas of tax law.
An enrolled agent is a good option if you have a more complex tax situation. However, you’ll want to make sure their area of expertise applies to your personal situation. Fees and availability may vary, but you can expect them to charge less than a CPA. An enrolled agent is also qualified to help you with financial planning and give you tips that could help you reduce your taxes in the future.