Reduce Your Risk of Tax Problems by Knowing the Qualifications of Your Tax Accountant

It’s a little unsettling to think that in many U.S. states, there aren’t any licensing or educational requirements to be an accountant. There are plenty of marginally qualified tax preparers and accountants out there who lack the in-depth knowledge and experience to provide consistently sound tax advice. Unless your tax returns are extremely simple and do not involve tax deductions, real estate transactions, or unpaid taxes, it’s generally unwise to settle for an inexperienced tax accountant. The ideal accounting service is one at which your taxes will be prepared by a trained professional with an accounting degree and who has passed the Uniform CPA Examination. If you’re in the market for tax and accounting services, it pays to know exactly who is going to be preparing your taxes and what their qualifications are.

Working with a CPA, instead of a less qualified tax accountant, is one of the surest ways to make sure you’re getting sound advice and competent tax preparation services. CPAs are required to pass the rigorous Uniform CPA Examination, which greatly increases the likelihood that they’re knowledgeable and diligent. Before they’re granted CPA licenses by their state boards of accountancy, aspiring CPAs must also live up to high standards in the areas of education, experience, and ethics. In effect, when you hire a CPA to provide you or your business with accountant services, it’s as if that individual has been screened and approved by a professional review committee. That’s no guarantee that the CPA you choose will never make an error or give you bad advice, but you’re definitely reducing your risk of tax problems when you deal with CPA firms.

Many CPAs are surprisingly affordable as tax preparers, and the value you get makes it well worth it. Not only do most CPA firms provide top-quality advice on reducing your tax liability and avoiding IRS audits, but they can provide you with audit representation if your tax return is singled out by the IRS. Only CPAs, enrolled agents, and tax attorneys are authorized to represent you before the IRS. The main advantage of hiring the services of a CPA is that they can help you both prevent and resolve tax issues that might arise during the course of your professional or business life.

If you ever find yourself in the position of owing more money to the IRS than you can afford to pay, there are a variety of ways CPA firms can help you. Many offer tax resolution services, which can assist you in reaching an IRS tax settlement or a payment installment plan with the IRS. For people who owe back taxes and are facing issues like wage garnishment, levies, and liens, the IRS penalty abatement services many CPAs offer can help get those costly penalties lifted or reduced. Having a tax accountant in your corner who also happens to be a qualified tax advocate can be a major advantage whenever you find yourself in the choppy waters of late tax returns, income tax problems, and IRS audits.