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Answer:
Dear
Gene,
Well,
in a way. They are actually called Enrolled Agents.
These
preparers - there are about 9,600 of them nationwide
- are more expensive, more sophisticated and have
more expertise than most commercial preparers. In
fact, they are licensed by the Treasury Department
to represent taxpayers before the IRS. An Enrolled
Agent must have passed a rigorous two-day written
exam, administered by the IRS and/or had at least
five years' continuous employment with the IRS in
a tax-related job. EAs are also required to take 24
hours of continuing professional education each year
to keep their designation.
EAs,
whose rates are more than those of a commercial
preparer and less than CPAs - figure $250
to $400 for an itemized return with some additional
work, such as out-of-state returns. They almost always
work exclusively in the world of taxes and therefore
tend to be up to date on all the ramifications of
the tax code.
$Tip:
To find an EA in your area, contact the National
Association of Enrolled Agents (800-424-4339 or
www.naea.org).
About
Commercial Preparers
I
mentioned commercial preparers as a basis of comparison.
This is the most basic and broadest group of professionals
who can help you with your return. It includes the
one-person or mom-and-pop type operation, those preparers
who set up shop during tax season and then disappear
until next year, as well as large, well-known firms,
such as H&R Block. Most commercial preparers accept
walk-in clients, do not specialize in complicated
returns and do not handle IRS audits.
About
Certified Public Accountants
This
is yet another group of tax preparers. CPAs are college
grads and are licensed by the state. Prior to licensing,
they must pass a rigorous 2 1/2 day exam and have
worked under supervision for two years. In most states
they must take 40 hours of continuing education courses
every year. CPAs, like EAs, can represent taxpayers
before the IRS.
CPAs
charge anywhere from several hundred dollars to more
than $1,000 depending upon the complexity of the return.
To
find a CPA in your area, get in touch with the American
Institute of Certified Public Accountants (www.aicpa.org).
Another
nationwide source is the CPA Directory (800-CPA-DIRECT
or www.cpadirectory.com).
You'll also find the financial calculators, tax tips
and legislative updates on the website very useful.
About
Tax Attorneys
These
lawyers may or may not be tax preparers. They serve
as legal advisors, helping those with complicated
tax and estate situations. If you're in a very high
income bracket and have an unusual personal or business-related
tax life, you may wish to consult with one. Be prepared
to pay several hundred dollars an hour.
Why
You Might Need A Tax Preparer
You
already mentioned a very good reason for turning to
an expert. In addition, if during the calendar year
any of the following happened to you, I assure you
that your return will be particularly complicated:
-
Your spouse died
- You
bought or sold a house
- You
started your own business
- You
folded a business
- You
operated a home office
- You
retired
- You
became a day trader
- You
collected rental or royalty income
- You
were a trustee, executor, legal guardian or conservator
- You
took a lump sum payment from a retirement plan
- You
moved to a new state
- Your
work required you to travel outside the U.S.
- You
lost property in a flood, earthquake or hurricane
- Your
income level changed dramatically
- You
remarried
- You
had a baby
- You
adopted a child
- You
came into an inheritance
Good
luck!
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