Why an Enrolled Agent
When you sign your tax return you are certifying under penalty of perjury that the information on the form is true and correct to the best of your knowledge. It is the taxpayer, not the tax preparer, that is liable for incorrect information.
Since the AICPA does not require it's members to take any tax courses to maintain their CPA license, and only seven states (including California) require tax preparers to take classes in tax preparation annually, membership in taxation societies are an indication that the preparer stays up to date on tax laws. Most societies require members to take more tax education than their license requires. National Association of Tax Prepares (NATP), National Society of Accountants (NSA) and National Association of Enrolled Agents (NAEA) are some of the associations that require their members to have continuing education.
The following are those that can prepare someone else’s tax return on the Federal level:
Enrolled Agents (EA) - Federal designation for those that have studied tax law and procedures, and passed a 4-part test in taxes including individual, corporate, partnership, estates, and trusts. They must complete 72 hours of continuing education in federal taxation over a three-year period to maintain their license. EAs are able to represent you in front of tax authorities and are not confined to practice in one State.
Certified Public Accountant (CPA)- State license granted to a person that studied auditing and accounting procedures for a public corporation. To maintain their CPA license in California they must complete 80 hours of qualifying continuing education during a two-year period.
Attorney at law – One with a state license to practice law. An attorney can prepare your tax return, but what you are really paying for is the privileged communication between attorney and client. If you feel you are taking a questionable tax position you may want to have your return prepared under attorney-client privilege. Generally attorneys have an EA or CPA prepare your return under their authority so as to preserve the privileged client confidentiality.
Tax Specialist, Tax Expert, etc. – No such recognized designation. Self-lauding individuals trying to purport knowledge.
How we help you
As an Enrolled Agent, we help you with the burden of tax regulation; and are open year round to help you with a simple question or a serious tax matter.
RWTax maintains high ethical and moral standards, believing that you should pay the lowest tax allowed by law; and we realize that taxpayers want to avoid tax audits.
RWTax can also help you start a new business, or take your current business to the next level by reviewing financing options, highlighting areas of possible concern, and assist in preparing marketing/business plans, and understanding financial reports.