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There’s a staffing shortage in the accounting industry, and it’s not too early to lock in a tax preparer for next season.
If you need someone with specialty expertise, such as the employee retention tax credit or cryptocurrency taxes, it may take longer to find a qualified match. Experts say that vetting of candidates is important. “Truly anyone can call themselves as a tax prepared. In her annual report to Congress for 2022, National Taxpayer Advocate Erin Collins cited the “absence” of “minimum competency standards” for return preparers as the top problem. She wrote that when a preparer mistakes, it is the taxpayer who is responsible and could face IRS action. It’s important to note that there is a difference between preparing your tax return and ongoing planning for the entire year. Walker explained that if they are a good adviser, they will want to fit well with you. They want to build a long-term relationship, not just one that is transactional. “
Check for tax credentials
While anyone with a PTIN can legally prepare federal tax returns, preparers may have varying levels of education, experience and expertise.
Three types of tax professionals have unlimited representation rights before the IRS: attorneys, certified public accountants and enrolled agents. The IRS says that these professionals must also meet continuing education and ethics requirements. These individuals also have continuing education and ethics requirements.
At a minimum, they should be participating in the IRS’ annual filing season program.
Owner of The Youngblood Group
You can check a CPA’s credentials by searching state boards and you can verify an enrolled agent by emailing the IRS.
However, unlicensed tax professionals can be good, too, according to Josh Youngblood, an enrolled agent and owner of The Youngblood Group, a Dallas-based tax firm.
“At a minimum, they should be participating in the IRS’ annual filing season program,” which requires continuing education and provides limited IRS representation rights, he said. Josh Youngblood, an enrolled agent and owner of The Youngblood Group in Dallas, said that unlicensed tax professionals can be good too. They should at least participate in the IRS’ annual filing season program which requires continuing education and provides limited IRS representation rights. “