Time is money.  Hiring a tax professional can cost somewhere between $250 and $500 and tax preparation software, such as Turbo Tax, costs about $100.   The question to ask yourself is how is your time better spent?

"If you've kept good records and have a relatively simple return, doing it yourself can work just fine." writes Inman News columnist, Stephen Fishman. "However, preparing your return will take time -- time that might be better spent selling real estate."

And if your record keeping is not up to par and your return is more complex or if this is the first time you will be filing a return for your business, Fishman suggests leaving it to a professional.

Fishman offers these tips for determining which type of tax pro is best for your needs:

A Tax-Preparer helps you prepare your return.  H & R Block is the largest firm of this type with many shops opening up in storefronts right now.  "Most tax preparers don't have the training or experience to handle taxes for businesses and, therefore, are probably not a wise choice." says Fishman.

An Enrolled Agent (EA) is liscensed by the IRS and can advise and prepare your taxes.  They have at least five years' experience and must pass a difficult test by the IRS.  They can help represent you in case of an audit and can handle administrative proceedings, circuit courts and tax courts if they have the right credentials.  "Enrolled agents are the least expensive of the true tax pros," says Fishman, "and are reliable for tax-return preparation and more routine tax matters. They can be quite adequate for most real estate professionals."

A Certified public accountant (CPA) are regulated by each state and must be licensed to practice.  CPA's are the highest level of tax preparation help, they must pass a comprehensive exam after extensive training. They will be the most knowledgeable and can help with more complicated tax work and accounting needs. A CPA will be the most expensive of choices for tax preparation services.

Online Tax Preparation:  A tax return can be handled completely online through email, if this is the most convenient route for you. You can even file from out-of-state, but make sure you use a preparer in your home state who is knowledgeable with your local tax rules and regulations.

Fishman offers these sites to find a tax professional for your business:

He suggests getting referrals from business associates, first, but. if this doesn't work, there are a number of professional organizations that have online databases of tax preparers.

These include the:

• National Association of Enrolled Agents (www.naea.org),
• American Institute of CPAs at (www.aicpa.org), and
• National Association of Tax Professionals at (www.natptax.com).

You can find other directories at:

• Accountant-Finder.com,
• AccountantsWorld.com,
• CPAdirectory.com, and
• Teaspiller.com.

Read the full story at Inman News.

photo credit: ismh_

Posted in Education And Training, Headlines

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