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Denver Tax Preparation Titles and Qualifications

September 27, 2017

A variety of different people can assist you with accounting and tax questions. Considering the advantages of professional tax preparation, you should look into your available tax assistance options. Friends and family often offer their advice, whether warranted or not. Even when seeking professional help the choices can be confusing to the average individual.

According to the Merriam-Webster Dictionary, an accountant is someone who is skilled in the practice of accounting or who is in charge of public or private accounts. By this definition many individuals are skilled in the practice of accounting, but does it mean they are all accountants?

Are you in charge of your own private bank account? Are you an accountant?

Probably not, but when seeking professional assistance it is important to understand the titles associated with those you trust to either handle your finances or keep your business in good standing with both the federal and state governments. Especially when it comes time for tax filing and if or when the Internal Revenue Service (IRS) becomes involved in any situation. Expert help is key for tax preparation, filing, and any audits that may be ordered or taking place.

Following are a few different labels often attached to accountants names and a brief description of each.

Paid Preparer

An individual who is a paid preparer is exactly that. Someone who is receiving payment in exchange for preparing and filing individual or business tax returns. These people have obtained a PTIN (Preparer Tax Identification Number) from the IRS and are authorized to prepare tax returns.

Certified Public Accountant

A CPA has been trained and tested, earning a state issued license to publicly practice accounting. While the requirements differ for each state, at minimum a CPA has passed the uniform Certified Public Accountants exam, 150 semester units of education, and one year of accounting related experience.

While most CPA’s will also acquire their PTIN since they are often preparing tax returns for compensation, it is not required. Depending on their employment situation, some CPAs may be hired by businesses or other organizations specifically for handling the finances of the company. Those practicing in these circumstances solely return taxes and monies to the IRS and/or state governments for their employer and not compensation from the public.

Enrolled Agent

Those who have earned the title of Enrolled Agent have been federally authorized to practice taxes and accounting. These individuals have successfully passed the three-part Special Enrollment Examination focusing on individuals, businesses, and practices/procedures. These individuals can also represent clients in tax court upon completion of an additional exam.

Come see the experts at Bloch, Rothman, and Associates who can answer any questions regarding individual or business income taxes and assist with a variety of bookkeeping options. A full detailed review of your tax situation can be completed in addition to resolution issues and estate compilations. All services will be completed in a timely manner, depending on your restrictions and possible tax deadlines. Whether you need a simple explanation on a random tax form or are in need of a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.