If you are considering hiring a tax preparer this year – you have the following options to choose from: an uncertified tax preparer, an enrolled agent, or a CPA. Which type of tax preparer is right for you?
An uncertified tax preparer doesn’t need a high school diploma, GED, or any degree to obtain an IRS “Preparer Tax Identification Number” or (PTIN). Nor is there any experience requirement! The tax preparer must only apply for a preparer tax identification number (PTIN) from the IRS and be at least 18 years old. They aren’t allowed to represent you in resolving IRS tax issues.
An enrolled agent’s only education requirement is to obtain their high school diploma or GED. They need no further higher education or experience to qualify to become an enrolled agent! They must only pass a three-part enrolled agent certification exam developed by the IRS. Once they have obtained the enrolled agent certification, they do have continuing education requirements of obtaining 24 credits per year. They are allowed to represent you in resolving IRS tax issues.
A Certified Public Accountant (CPA) must have a Bachelors’ degree plus 30 additional college-level credits for a total of 150 college credit hours to qualify for their CPA license. They must also pass a four-part Uniform CPA exam, one of the most rigorous licensure exams to pass! In addition, they must work under the supervision of a CPA for at least a year to get licensed by the State for their profession. Once CPAs obtain their professional license, they have continuing education requirements of 40 credits per year. CPAs can professionally represent you in resolving IRS tax issues. In addition to professional tax preparation and tax planning, CPAs can also provide accounting services, financial statements, management consulting, audits, bookkeeping, and more!
If you or your business require the professional services that only a CPA can provide or you simply want the peace of mind that comes with a licensed and regulated professional, a CPA may be the better fit for you!