Why do I need a Certified Public Accountant (CPA) or Enrolled Agent (EA) to prepare my return?
CPA’s and EA’s know the unofficial rules of IRS Audit Red Flags. Having a clear and concise presentation on a tax return is the MOST important step in avoiding an audit. Experienced CPA’s and EA’s know that, in the event an IRS agent physically looks at a return, neat and clear documentation shows a sense of organization and makes a professional impression.
Does the IRS actually look at my return?
YES! Today the IRS automatically scans each return twice (once at the local office and once again at the regional office) for missing income that gets reported to them such as W-2’s and 1099 Forms, which include interest, dividends, rents, royalties, and independent contractor earnings.
My current CPA bills me by the hour, over the years, the bills fluctuate for reasons I don’t seem to understand. What’s the difference between hourly billing and your “value pricing” model?
Clients that are new to using a CPA/EA to prepare their return are sometimes shocked in the first year by the cost of the return. Our value pricing eliminates this potential nightmare. Our value pricing model is simple and upfront. No surprises!
My tax accountant isn’t a CPA or EA, is this a problem and should I be worried?
There are many “good” tax accountants out there that have little to no tax experience. Tax laws and regulations are constantly evolving and only CPA’s and EA’s are required to have a minimum amount of continuing education credits every year that allow them to be the most informed and up to date in the tax field.
Does the IRS use special software that triggers red flags that make is easier for them to find AUDIT targets?
YES! The software they use is called “Discriminate Function System” which scores your return based on various calculations and comparisons. They higher the score, the higher the chance of getting audited.
Does my current CPA/EA really prepare my return? Do they even review it before they sign?
The unfortunate fact is that if your CPA/EA has and “staff”, tax accountants, supervisors, or managers, they most likely do not prepare your return. Even worse, sometimes they don’t even review it. They simply sign off on the return after a supervisor or manager reviews it. This is not giving you the client service value you’re entitled to.