Is Your Tax Accountant Authorized By The IRS?

Accounting services come in all shapes and sizes. Many accountants are CPA's, but you don't have to be a CPA to be a good tax accountant. Finding a tax preparer isn't too hard but finding a good one can be a challenge.

The three types of accountants are:

1. Bookkeepers: Are those who have little or no formal training in accounting.
2. Enrolled agents: Those who have passed the EA exam and are licensed by the IRS.
3. Certified Public Accountants (CPA's): Those have an accounting degree, have passed the CPA exam, and have at least two years of experience in their field.

There are tax accountants without any formal license practicing in the field and it can be difficult to find out if your tax accountant is one who you can trust. Regional IRS staffers often know who the problem tax accountants are in their districts. To avoid unwanted attention from the IRS, look for tax accountants for tax services authorized by the IRS to file electronically over the Internet. The IRS subjects these professional accountants to criminal background checks, and even keeps their fingerprints on file. They also check the personal tax record, and check with regional officials about their business record. You can identify these tax accountant pros by the little yellow lightning bolt logo in their ads and on their stationary.