The Difference Between Income Tax Accountant & Income Tax Prepare
There is subtle, but prevalent difference between the two professions. Income tax accountants and income tax preparers both deal with taxes in a way. But both have different goals.
For clarification, let us see their job descriptions;
Income Tax Accountants
The income tax accountants are responsible for assisting their clients and companies in their financial tax statements. The word financial is synonymous with income in this instant. The accountants are responsible for dissecting the tax law. They research, study and interpret it to suit their client’s needs. They are responsible for preparing payments, identifying tax savings, highlighting and analyzing tax issues.
There are many income tax services in Dallas, Texas, but SG Inc. CPA is the best one so far.
Income Tax Preparers
The income tax preparers find themselves responsible income tax preparation. They can do this work on an individual or a corporate level. Their work includes identification of potential tax credits that their clients may exploit. They also identify the liabilities and ensure their clients are not caught in them. the tax preparers ensure the taxes are filed in an accurate and timely manner. They also ensure that policies, regulations and legislations are followed to the letter.
I personally choose the best tax accountants near me for tax services, instead of tax preparers.
The income tax accountants require different level of qualifications than tax preparers. Either of them can assist with preparation and filing of income taxes on a personal or a corporate level. But the income tax accountants can provide more long-term assistance. A Personal CPA Accountant can have the autonomy to practice in both fields for compensation, without violating IRS regulations.
My insistence on choosing best accountants near me for taxes, instead of preparers is also based off of qualifications.
All income tax preparers are required to pass an examination. This exam ensures their competency to practice preparation of tax returns on a professional level. Those who pass the exams and get registration from IRS are issued Preparer Tax Identification Number by IRS. The CPA’s face the examination at the hands of National Association of State Boards of Accountancy to get their certification. CPA’s are exempt from another exam by IRS. They can gain their Preparer Tax Identification
Number easily from the IRS for a small fee.
IRS Renewal Requirements
Income tax preparers are required to continue their education in the field as per the IRS regulations. This requirement is necessary for the renewal of their Preparer Tax Identification Number. It can be done through IRS after paying a small fee. This requirement consists of a 15-hour annual education in federal ethics and tax laws.
Income tax accountants, or CPA’s on the other hand are not required to maintain IRS regulations for educations. It does not damage their standing with the licensing authorities. They can renew their licenses without much trouble.
There are several services which can provide small business tax accountant near me. But none better than SG Inc. CPA. They can provide me with a personal tax accountant.
Almost all income tax accountants are CPA’s. Non-CPA holders can prepare and compile financial reports. But CPA’s can assist their clients during audits. Moreover, they can also assist in financial estate planning. The tax preparers are limited in their knowledge and scope. Their lack of qualification makes their advice in the field less valuable then that of a CPA.
The registered income tax preparers are usually self-employed. If not, they work for tax preparation companies only when tax season draws near. Their work is mostly done during annual tax season. On the other hand, income tax accountants can work in many capacities all year round. Tax accountants in my area are certainly very much qualified and active all year round.