financial planner

Tax

Need a Tax Preparer? Facts to Know

As a provider of one of the nation’s largest database of accountant, advisors and financial planners, I found the following very interesting article at:

http://irsattorneys.webarticles.co.za/need-a-tax-preparer-important-facts-to-know.html

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Every tax season someone will write a story about how to choose a tax preparer, the latest scams to watch out for, new tax laws, identity theft issues and on and on it goes until you hit panic mode. So much research, so much time and what if you owe money?

Each year the California Tax Education Council (CTEC) receives phone calls from taxpayers desperately looking for information about their tax preparer they should have learned day one. A surprising number of callers do not even know the tax preparer’s name.

Why do so many of us go into tax season with such immense trepidation until it comes to hiring a professional tax preparer?

Before you Google, flip through the yellow pages or walk into the nearest tax preparation office, know this: If you live in California or Oregon, make sure your tax preparer is legal.

In California, paid tax preparers who are not an attorney, certified public accountant (CPA) or enrolled agent (EA), are required by law to register with CTEC. All CTEC Registered Tax Preparers (CRTPs) must complete tax education courses each year and keep a current bond before they can prepare tax returns for a fee.

If you live in Oregon, all paid tax preparers must be licensed through the Oregon State Board of Tax Practitioners.

Maryland recently passed legislation in 2008 to also require that its paid tax preparers complete education requirements and pass an exam before they can prepare tax returns.

As for the rest of you, choose your tax preparer cautiously. There is no oversight for tax preparers in other states who are not an attorney, CPA or EA. In other words, the training, education and ethical standards these tax preparers go by are set at their own discretion.

Hiring the wrong tax preparer could result in penalties, missed deductions and no protection against mistakes or fraud.

Below are the top ten questions to ask a tax preparer (They should answer “yes” to all ten questions):

1. Will you sign my tax return?

2. Do you have a written privacy policy? Can I get a copy of it?

3. Do you have proof of a tax preparer bond (Required for all CRTPs) and/or errors and omissions insurance (Optional for all tax preparers)? If not, what protections will you offer me and can I get it in writing?

4. If a situation should arise with the IRS, will you stand by your work?

5. Do you take continuing education courses on tax laws? Can you provide proof?

6. Can you provide me with a list of references I can contact about your work?

7. Will you be available after April 15th?

8. Have you ever prepared a tax return dealing with my situation?

9. Will you provide me with a copy of my completed tax return?

10. Will you go over the finished tax return with me?

CTEC was established in 1997 by the California State Legislature to protect the public by registering tax preparers within the state. For more information visit www.ctec.org or call (877) 850-CTEC.

CTEC is a nonprofit organization that is mandated by the State of California. CTEC’s mission is to protect the public by ensuring paid tax preparers (excluding attorneys, CPAs and enrolled agents) are registered, educated and bonded.

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Technology

Embracing Technology and Ultra Mobile Computing

I am a financial and web development consultant. I used to work on a beefed up MacBookPro laptop along with the help of such software as QuickBooks Pro, Thomson Reuters Ultra Tax CS, MS Excel & Word, Adobe Creative Suite 5 and others to surpass the needs of my clients and allow myself great portability – or so I thought.

Laptop are great aren’t they? Yes! Well… yes, except their battery life. When you want to be portable (to me portable is defined as the ability to move said object with ease), you want light, you want small.  Although MacBookPro laptops are light and relatively small, when add the laptop sleeve and power supply, their lightness seemingly disappears. I know this to be true because one of the benefits of being a consultant is setting my own hours, dressing however and working wherever I want… and that included carrying my MacBookPro laptop in a sleeve, in my backpack along with the power supply and bluetooth mouse on my fixed speed bicycle. After a while it felt like I was just carrying around a log. Not to mention the additional weight in the backpack from the bicycle lock and some necessary water for the days’ travels.

For awhile I was reading reviews of the iPad. I even went into the Apple Store to play with one to see if this could be the answer to my portability problems. At that time I could not wrap my mind around how I would be able to perform some of the ‘hard computing tasks’ that I am required to do (i.e. web development, accounting using QuickBooksPro, or working on a tax program.

Well, all that weight on my back while on my bike took its toll and I decided to jump head first into an ultra mobile computing workflow.  I purchased an iPad1. I was highly motivated to purchase the first version of the iPad once the iPad2 was released because of the significant reduction in prices on the original iPad!

I can honestly say that I couldn’t be happier with my decision to go Ultra Portable Ii.e. iPad and bluetooth keyboard). I love the instant on, lightweight, seemingly forever batter life and the power of the iPad. Yes, I said it… Power! The iPad is so extremely powerfully because of all the apps you can download. 

To overcome my ‘hard computing tasks’ fears that i previously had, I simply downloaded Logmein, on the iPad, and remote control my home desktop and perform whatever tasks I need. Logmein is the ultimate software to control a remote computer. The features within the software are fantastic. What helps me the most is the ability to reduce the screen quality to grayscale so that my control of the remote system is as if I were sitting in front of it – seamless!

In addition to Logmein, I have found web development within the iPad app Textastic to be the closest resemblance to Adobe Creative Suite’s Dreamweaver in the ultra portable space.

I am definitely not an Apple fan boy. In many ways I actually prefer the Android platform.  I believe I would be similarly happy with an Android tablet. It’s just (1) the price of an iPad; (2) I am already an iPhone user and; (3) I am immersed in the Apple Eco-System.

Grab an iPad today. I purchased mine from someone I found on Craigslist. It was in new condition!

Tax

Tax Professional or ‘Do-it-yourself (DIY)’?

As a financial industry professional, I find this an interesting topic to review. I am not a licensed Certified Public Accountant (CPA), but I have a BA in Accounting and I have successfully passed all parts of the CPA examination. More importantly, I can relate to the typical taxpayer, in that I was born without qualified tax knowledge.

When I was young, I used to think, ‘Why would I waste some of my potential refund dollars on a tax professional when I believe I can figure this tax stuff out myself?’ And when I was young that made sense (…no dependents, no real estate, no home office or home office expenses, no capital gains, no other income from partnerships or LLC’s – nothing too complicated). Now that I have grown up a bit, my thinking has changed.

Sure, once per annum, DIY preparers can purchase software that makes a valiant effort to navigate them through some of the tax situations mentioned above, but it is not the same as sitting down with a professional and reviewing one’s finances as a whole. The micro and macro assessment of your particular financial situation provided by a trained professional is not something a tax software (used by a novice) can provide. At least not at the same level of quality. (When I state trained professional, I am referring to a CPA, CFP, PFS or of similar qualifications. Not an H&R Block or similar ‘fast-food’ trained preparer – i.e. don’t expect filet mignon from McDonalds!).

Unless you’re very young, childless and/or, have very few assets, in my humble opinion you need a financial plan created & implemented with the assistance of a finance professional. Financial professionals did not spend hundreds of hours and thousands of dollars in education and qualification because it feels good. Instead, this time and money was spent to have an understanding and competence in the intricacies of financial matters.

Tax preparation is often viewed as a duty or task that must be completed by a certain date (or if you’re expecting a refund – something you want to file asap!). And yes, your taxes need to be filed timely or put on extension, however, this article is designed to help the reader view tax preparation as a component of a larger process, or better yet a plan… a financial plan. Find an advisor (http://accountantdirectory.com) and begin developing your financial plan today!

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