1. The most popular tax preparers are those that offer tax preparation services. At the very least, they are authorized by the IRS after satisfactorily passing a competency test. They are the most updated with the IRS changes that come out each year. These professionals are the best option for taxpayers with straightforward returns.
According to Consumer Reports, tax preparers with national chain oftentimes offer low cost services when compared with accountants. Nonetheless, you still need to compare since prices vary with experience.
2. If you are a businessman or has had a significant change in lifestyle that affected your finances, you might want to consider hiring a Certified Public Accountant (CPA). Aside from tax preparation, CPAs can provide you a tax plan for the entire year. CPAs are best for people with more than one income stream and for individuals with a small family business. CPAs have passed a state exam, providing you some assurance of professional services. However, because of the broad discipline of accounting, not all CPAs are tax experts; most CPAs are experts in financial accounting or auditing.
3. Anywhere in the US, you can find an Enrolled Agent (EA). EAs possess federal licenses that allow them to practice in all states. Also, they are the only tax professionals licensed and deputized by the US Treasury Department. They represent erring taxpayers facing tax problems with the IRS. Aside from tax preparation and tax resolution, EAs are the best if you are challenged with interstate tax issues and or are looking for a low-cost alternative to tax lawyers. However, EAs may cost you more when compared with tax preparation services and CPAs so shop well.
4. The tax lawyer is your best option if you are facing legal issues with the IRS. They do best in providing you with legal tax shelters. They will represent you in before the IRS or any tax court. They can help you in dealing with back taxes. However, you won’t need a tax lawyer if you have been good with complying with tax laws.
5. The IRS is aware of your need to save on tax preparation costs so that agency has a free tax preparation option available for you. There is a DIY process where you are provided with a fillable form and software that will walk you through the process.