There are three levels of individuals preparing taxes as a profession. A Certified Public Accountant has a bachelors degree and in some states a masters degree is required. This is the best choice. Residents in the area can use Austin Texas Tax Preparation for tax services.
To become a CPA an individual must have a four year degree in accounting. In some states a masters degree is required. Then he or she passes a stringent examination to acquire a license to work in the state he or she resides in. Each state may have slightly different requirements.
An individual might be categorized as a Registered Tax Return Preparer. As of January 2013, one does not have to be registered this way to file federal income taxes as a profession. There is no required competency testing for this group of accountants. Conversely, the Certified Public Accountant has passed the exam mentioned previously and is licensed to practice in the state he or she works in.
The same code of ethics once applied to CPAs exclusively is now applied to all tax preparers. Often less educated preparers will work under the supervision of CPAs. All who do this filing must pass a tax compliance check and follow specific standards set forth in Treasury Department Circular 230.
Some CPAs work as auditors. This is the position that is sent in to investigate businesses suspected of tax fraud. The tax records from previous years are inspected. It may take only a few days, but, often takes much longer, depending on how big the business is and how much security they provide.
Any purchases must be verifiable by showing receipts. Invoices to their customers are examined. Payroll checks are looked over as well. When tax forms are being filed for an individual, the preparer will request all the documents he needs. The records from previous years may be needed.
To become a CPA an individual must have a four year degree in accounting. In some states a masters degree is required. Then he or she passes a stringent examination to acquire a license to work in the state he or she resides in. Each state may have slightly different requirements.
An individual might be categorized as a Registered Tax Return Preparer. As of January 2013, one does not have to be registered this way to file federal income taxes as a profession. There is no required competency testing for this group of accountants. Conversely, the Certified Public Accountant has passed the exam mentioned previously and is licensed to practice in the state he or she works in.
The same code of ethics once applied to CPAs exclusively is now applied to all tax preparers. Often less educated preparers will work under the supervision of CPAs. All who do this filing must pass a tax compliance check and follow specific standards set forth in Treasury Department Circular 230.
Some CPAs work as auditors. This is the position that is sent in to investigate businesses suspected of tax fraud. The tax records from previous years are inspected. It may take only a few days, but, often takes much longer, depending on how big the business is and how much security they provide.
Any purchases must be verifiable by showing receipts. Invoices to their customers are examined. Payroll checks are looked over as well. When tax forms are being filed for an individual, the preparer will request all the documents he needs. The records from previous years may be needed.
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