sub-contracting and taxes - an accountant can help!

Why Use An Enrolled Agent To Prepare Your Taxes?

by Wallace Hanson

If you don't want to prepare your own taxes every year, then you can get help from various tax preparation service providers. For example, you can hire a CPA, enrolled agent (EA), or other accounting professional to help with this job.

If you want expert tax assistance, then consider working with an EA. Read on to learn more about what EAs do and the benefits of using them.

What Is an EA? 

EAs are tax professionals who are licensed by the IRS. Some EAs have worked for the IRS in the past; others move into this field to focus on giving tax assistance to individuals and businesses.

EAs typically have to go through a set of checks and tests before they earn their licenses. First, the IRS runs a suitability check on them. They then have to pass a stringent exam.

This exam tests their knowledge and understanding of the tax system as a whole. For example, they have to prove that they have an in-depth grasp of tax preparation, planning, law, and representation.

In order to keep their license, an EA has to take mandatory continuing education training every few years. This ensures that they keep up to date with tax changes and rules.

Why Use an EA?

While other tax preparation specialists, such as CPAs, can help you prepare your taxes, this is only one part of their job. CPAs might also do general accounting work for their clients.

EAs only work in the tax field. They have expert skills and experience.

They have to meet strict IRS standards to get a license in the first place. Plus, the fact that they have to take regular continuing education training ensures that they have complete and accurate knowledge of the tax system at any given time.

CPAs don't have to do any formal top-up tax training. So, their knowledge might not be as intensive or current. You can have confidence that a licensed EA will help you prepare your taxes accurately. They will give you up-to-date advice on tax breaks and liabilities.

So, your tax submissions will be more accurate. You are less likely to make mistakes that could result in penalty fines; you'll get all the tax breaks you're entitled to.

Unlike CPAs, EAs can also work in any state. Their license doesn't have geographical boundaries. This is useful if you need help preparing returns in different locations. You can use one EA rather than having to work with individual agents in different states.

To find out more, contact a company like Hough & Co CPA.