Q:
Why should I file my return with OnlineTaxPrep.com rather than another
option.?
A:
We make filing your taxes quick, easy, and cost-effective, while
providing
personal and professional accounting review and adjustment to ensure
you are legally minimizing your tax obligation. We are also committed
to providing close, personal attention to our clients. We view every
client relationship like a partnership, and truly believe that our
success is a result of your success.
Q:
What items should be on hand, when I am ready to file my taxes for
next year?
A:
We can never stress the importance of record-keeping enough. The
receipts and paperwork from prior years that you preserve can be
a real helper in case of an unfortunate audit; most of these are
picked at random by IRS. So always keep the following with your
important paperwork and bring them out before you start working
on your tax return:
- Prior
year's tax return
- Forms
1099-Int, 1099-OID and 1099-DIV for interest and dividends
- Forms
W-2 for wages
- All
information for sales of stocks or business assets
- Business,
rental and/or farm income and expenses summarized with totals
- Forms
1099-G for unemployment and other government payments
-
Forms 1099-R for retirement distributions
- Distinct
categories of income and expense laid out on paper
- Schedules
K-1 for partnerships, S corporations, estates and trusts
- Complete
listing of all sources of taxable and nontaxable income
- All
receipts for expense matters listed below:
- Childcare
expenses
- Real
estate taxes
- Home
mortgage interest
- Charitable
contributions
- Employee
business expenses
- Medical
and dental expenses
- All
other deductible expenses
Q:
What are Enrolled Agents?
A:
Enrolled Agents are individuals licensed by the federal government
to represent taxpayers before the Internal Revenue Service. Enrollment
dates back to 1884, when Congress acted to regulate persons who
represented citizens in their dealings with the Treasury Department,
after questionable claims had been presented for Civil War losses.
Q: What exactly do Enrolled Agents do?
A: Unlike lawyers or CPAs, Enrolled Agents specialize in
taxation. Throughout the year they advise, represent and prepare
returns for individuals, partnerships, corporations, estates, trusts
and any entities with tax-reporting requirements. In California,
for example, the more than 4,000 members of the California Society
of Enrolled Agents prepare almost 2,000,000 tax returns each year.
Enrolled Agents' expertise in the constantly changing field of tax
law enables them to be effective representatives when taxpayers
are audited by the IRS.
Q: How do Enrolled Agents differ from other tax experts?
A: Only Enrolled Agents are required to demonstrate competence
in matters of taxation before they may represent a taxpayer. Also,
they are the only representatives for taxpayers who receive that
right from the U. S. government. (CPAs and attorneys are licensed
by the states.) An individual may become an Enrolled Agent in one
of two ways: The primary way is to pass a difficult, two-day examination
given annually by the IRS. The test covers taxation of individuals,
corporations, partnerships, estates, trusts, procedures and ethics.
The other way is to have been an employee of the Internal Revenue
Service for five years, regularly applying and interpreting the
provisions of the Internal Revenue Code and regulations.
Q: Are there other requirements?
A: Over the years, an average of one-third of individuals
taking the examination have passed, allowing them to apply for enrollment
and subject themselves to a background investigation. In addition
to the stringent testing and application process, Enrolled Agents
are required to earn 72 hours of continuing professional education,
reported every three years, to maintain their status. Because of
the difficulty in becoming enrolled and maintaining that enrollment,
there are fewer than 34,000 Enrolled Agents in the United States.
In contrast, there are about 375,000 certified public accountants
(CPAs) nationwide.
Q:
Where can I find out more about Enrolled Agents?
A: Write or call the
California
Society of Enrolled Agents
3200 Ramos Circle
Sacramento, CA 95827-2513
916/366-6646
800/777-2732
Email info@csea.org |
