Did you know that you do not need to be certified or have any type of formal education to be a ‘tax preparer’? Anyone can go to the IRS, get a Preparer ID number, call themselves a tax preparer and prepare taxes. Did you also know that errors on your tax return are ultimately your responsibility, not your preparers?
Tax mistakes can be extremely costly, since they usually include not only the taxes that are owed, but also penalties and interest. It’s vital to make sure that whoever you hire is qualified to assist you with such important aspects of your finances. A few benefits of working with a CPA include:
CPA’s are required to have a minimum education requirement (typically a Bachelor’s Degree) before they are even eligible to even sit for the CPA exam
To get CPA licensed, the individual is required pass a rigorous 4-part examination testing their comprehension of taxation, finance and accounting. Additionally, they are also typically required to have a Master’s Degree.
CPA’s are required to have a minimum of 40 hours of continuing education every year, which insures that they not only are, but remain experts in their field and are up to date on the constantly changing tax rules.
Since CPA’s are qualified in multiple areas of taxation, finance, and accounting, working with a CPA goes beyond simple one-off tax prep, and will result in wholistic, and strategic advice.
CPA’s are bound by a code of ethics, enforced by that CPA’s state board of accountancy.