0816_TOEFL-Test-and-Score-Manual-1997

52 ● 201 Great Ideas for Your Small Business
their accrediting organizations. If you like the person and their references
check out, discuss these specific issues:
1. What are the fees for various projects and services?
2. Who, specifically, at the firm will do the hands-on accounting and tax
preparation? Can an introduction to that person be arranged?
3. How does the firm expect information to be provided to them? Via
e-mail? Paper copies?
4. Is the firm experienced in handling disputes with the IRS?
5. How does the firm expect to be paid? Net 30?
Remember, if things don’t work out, don’t be afraid to change accountants.
There are thousands out there who would be happy to have your business.
GREAT
Work with an Enrolled Agent
to Do Your Taxes
IDEA want all the CPAs to skip this section. I’m about to suggest
an alternative tax preparer: an enrolled agent (EA).
I
Although they’ve been around since 1884 and prepare millions of tax
returns a year, enrolled agents are a well-kept secret. While certified public
accountants (CPAs) and public accountants (PAs) are licensed by the state,
enrolled agents are licensed by the federal government. EAs specialize
in preparing tax returns and can represent taxpayers before the Internal
Revenue Service, just like CPAs and tax attorneys.
They have to renew their license every three years after completing 72
hours of education in taxation. Despite their background and education,
EAs tend to charge lower fees than CPAs or PAs.
EAs are definitely outnumbered: there are only about 35,000 in the
United States, compared with 500,000 CPAs and PAs.
There are probably so few because it’s tough to become one. There are
only two ways: pass a tough, two-day exam given once a year by the IRS
(only about 30 percent of those who take it pass it) or work for the IRS for
five years. Through the years, EAs have had to battle CPAs who have pushed