What You Should Know About Tax? Essay

753 Words Jan 5th, 2016 4 Pages
What you should know about tax?
For every small business, it’s important to hire the right tax professional. Good tax assistance allows you to deduct money from your annual income. Anyone can say that they are a tax expert, but only great taxmen know how to do their job exceptionally well. The person you hire to do your taxes must be authorized by the IRS and have a valid PTIN.
To ensure that the tax professional you hire is properly prepared and have the right credentials, you need to know the following information:
1. Enrolled agent (EA) - An EA is licensed by the IRS, and must have at least five years’ experience with tax preparation. They are not that expensive. Often they want to work as bookkeepers or assistants in Accounting.
2. Certified public accountant (CPA) - or others accountants perform sophisticated accounting and business-related tax work and prepare tax returns. They get licenses and are regulated by each state. CPAs often work in large and complex enterprises that pay them well.
3. Tax attorney - These are lawyers with special diplomas, called the L.L.M in taxation, a tax specialization certification from a state bar association. If you have a problem in the company, in trouble with the IRS, or if you need legal representation in court, they should be consulted. Although, they are extremely expensive, they provide some of the best tax help across the U.S.A.
Whatever type of tax professional your business needs, you must ensure they are good at their…

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