Suppose you need to buy a new car, you have to just take your old one to a mechanic or check your Blue Book in order to get a proper idea of the accurate price of the car. Though you may benefit by knowing how the engine works, it is also necessary to engage in car shopping. On the other hand, if you have to shop for a CPA, you’ll require a totally different set of skills. Sometimes, it can get even more difficult than finding the best doctor for you. If you hire a CPA who forgets about your tax deductions and your tax returns, you will probably dig your own grave.
So, before hiring the best CPAs from trusted online sources like https://www.pstein.com/, you should always know the intricacies about hiring one. Read on the concerns of this post.
CPAs vs. EAs
CPAs are Certified Public Accountants and EAs are Enrolled Agents and there are only 4 states which need their tax preparers to be licensed and there are no such consumer protections from the federal government. Yes, the guy whom you hire for handling your taxes might have been a bartender a few weeks ago!
For the starters, no unlicensed tax preparer can ever represent you in front of the IRS and although there are many trustworthy unlicensed professionals, in case the tax calculations are complex enough, it is better to hire someone who has got baseline knowledge. This will include passing a long test, practicing enough for the license and completing the required procedure.
Who are the best candidates for hiring an expert CPA?
You are supposed to hire a CPA when your issues are way beyond tax deductions. The tax law is complicated and flexible and it is a CPA who can give you the best advice on estate planning, tax planning, business planning or gift planning and he is the one who can also represent you during an audit. Here are few situations when you may need a CPA.
- If you are a self-employed contractor: You will certainly need the assistance of an expert professional who can uncover all sorts of planning and plans which arise whenever you’re the owner of a business.
- If you’re the owner of Partnership or S corp: There are few basic problems which make the filings complex enough.
- If you’re in a high income zone: There are higher chances of being audited in case you earn more than $200K. This is also when you should get a CPA.
Therefore, now that you know the times when you require hiring a CPA, hire one if you fall among any of the categories given above.
