Which Type Of Tax Services Provider Does Your Small Business Need
Whether you're concerned about filing the necessary taxes or devising a sound tax strategy, you'll need the help of a tax professional. Because of the legal and financial implications involved, as a small business owner, you should always be careful to remain on top of your tax matters. It's difficult to keep up with changing tax laws at the state and federal levels, so you'll need someone who knows what's going on. They can assist you with tax returns, strategy, and audit preparation. However, there are many levels of tax service companies. Which one are you looking for?
1. A Certified Accountant (CPA)
A certified public accountant (CPA) is a financial expert who has qualified in a demanding exam given by their state accountancy board. Clients can benefit from tax matters and other financial services. CPAs can help clients prepare their taxes and represent them in IRS audits and appeals. They are professionals in accounting and taxation law, making them suitable for assisting customers with tax concerns. These professionals can also assist you with other financial problems such as estate planning.
2. IRS Enrolled Agents
Enrolled agents are licensed to represent taxpayers in all matters in tax disputes like audits and appeals. They have passed a competency assessment by the IRS. They are regarded as tax experts. They must keep up with continuous education and renew their licenses every five years.
3. Tax Attorneys
A tax attorney is knowledgeable about legal tax issues and has passed a bar exam offered by the bar organization in their state. To keep their licenses, tax attorneys must enroll in continuing courses. Tax attorneys can represent you in tax disputes with the IRS and other government authorities.
4. IRS Annual Filing Season Program Participants (AFSP)
You can join the AFSP and acquire a preparer tax identification number (PTIN) if you're a small business owner or self-employed. You will develop knowledge of several aspects of federal tax law. You may file your taxes electronically and receive your tax refund sooner if you are an AFSP. This ability comes in handy in a variety of situations, including IRS audits.
5. No-Credentials Providers
Providers that offer services for free do not need a professional license. It could be anyone, from your spouse to a savvy friend in tax matters. You can use this help if your business is still very young with an uncomplicated tax situation. Are you worried your business is not updated on tax matters? Talk to a tax services provider about your tax situation to be on the safe side