Don’t let another year roll by without getting your taxes in order. The Internal Revenue Service (IRS) is set to lay out more stringent policies on tax collection under the new administration, following last year’s implementation of official representation for taxpayers. In 2016, the IRS enforced a major policy change that required licensed CPAs, tax lawyers, and certified enrolled agents (EAs) to represent taxpayers for all tax filing and tax returns purposes. The same policy will be followed this year.
Keeping in line with the IRS Tax Code Law
Majority of conflicts with the IRS last year resulted in unapproved representation of taxpayers. It was reported that more than 50% of American taxpayers enlisted the services of tax preparers to help sort and file their taxes, however, about 60% of these tax preparers were not licensed to do so. They did not receive the proper training to handle taxes, which resulted in complications whenever the IRS needed to call in a taxpayer to settle a dispute.
You should not leave such an important aspect of your life to unlicensed individuals who charge you for their unofficial services. Bill Smith, the managing director for the National Tax Office (CBIZ MHM), advises all taxpayers to consult only with CPAs, licensed tax lawyers, and certified EAs. By looking for someone with the proper credentials, you are also protecting yourself from becoming the target of an unruly audit and tax review.
Know the IRS specifications for taxpayer representation and trust only licensed professionals to fulfill your tax collection cases, annual tax audits, and case appeals.
Why is it important to hire a professional?
The task of filing your taxes can be daunting if you were not trained to dive into the tedious world of multi-step processes, documentation, policy adherence, and legal forms. How can you guarantee achieving a favorable result when the person representing you is not knowledgeable enough to mete out the procedures?
If the tax process is already intimidating to you, then the process of mitigating penalties and settling disputes will drive you further up the wall. Avoid unnecessary penalties by hiring a professional from the beginning. If all the legal jargon and technical steps are too confusing for you, you can let a professional translate the process into straightforward information.
Can you learn all of this by yourself?
If you have the spare time, then you can devote it to understanding our country’s ever-changing tax laws. However, be warned that the Federal Tax Code consists of over 70,000 pages encompassing tax procedures, tax exemptions, and state-specific regulations. Once you’ve mastered all the fundamentals, you will also have to stay abreast with all the policy changes that may be laid out throughout the year.
Tax services is a demanding job, which is why there are people who receive specific training on this matter. They also posses the specialized skills needed to thrive in such a dynamic and technical world. This is also why you should trust a licensed professional such as a CPA or a tax attorney to do the job for you.
Does a CPA know something I cannot learn myself?
The landscape of tax laws and regulations is ever-changing, so chances are, a CPA will know more information than you because he or she is connected to an active network of professionals that deliver all these policy updates in real time.
Your CPA will also know about possible exemptions, deductions, and possible additions to your retirement plan that you may not be aware of. Be sure to ask these when consulting a professional so you can take your hands off as many liabilities as possible.
If you want to straighten out your taxes this year, or if you are being summoned for an audit, waste no time and consult a tax professional.
Ann Arbor CPA specializes in the technical planning and delivery of all kinds of tax requirements, so you can be assured that you will remain in good hands. Abide by IRS standards and talk to a licensed CPA, tax attorney, or certified EA today. You may consult with us by calling 734-663-1313 today. Let us help!