If you need to file your taxes and are not able to understand the new tax codes, then you might need to hire the services of tax professionals. Now choosing the right one can prove to be a challenge, especially with so many companies emerging in the market.
Role of Enrolling Agents in Tax Planning
Enrolling agents (EA) are tax specialists that are recognized by the federal government and can help with your tax filing. They can either be appointed by companies or be self-employed. Now, if this is your first time hiring tax professionals, it is natural to get enrolling agents confused with Certified Public Accountants (CPA). There is always a constant debate about EA vs CPA, on which one to opt for.
To understand both these professions better, you need to first understand the roles and responsibilities of enrolling agents. Enrolling agents can:
- Help perform audits
- File appeals with the IRS
- Help you with understanding the complex tax laws and codes
- Help you with all your tax planning
- Offer tax advice compliant with the IRS rules
- Can help with exceptions and deductions to reduce your tax burden
CPA in addition to offering tax advice can also help with accounting and bookkeeping aspects of your business.
Researching Your Options While Hiring Tax Professionals
While hiring tax professionals, ensure that you adhere to the below guidelines and choose the right people for the job:
- Verify the credentials and qualifications of the tax professionals
- Check with the Better Business Bureau to verify the license of the professionals
- Ask for references from their clients
Credible tax professionals will always check for the financial records of their clients. They will be readily available to answer all your queries. Once they have prepared your returns, they will share the draft with you and ask you to review them. While submitting the final tax returns, they will sign the documents with their PTIN.
Patience is the key when it comes to choosing the right tax professionals. If you do happen to come across a fraudulent tax professional, you can report them to the IRS.