04 May
Posted by Alex as Business, Money and Finance
Paying taxes suck most of the time. That is, unless you live somewhere your tax is wisely used on social services. Then at least you get the most of what you pay your state. But in general, no one really wants to pay taxes. Especially small business owners. Doing the numbers can be a real chore.
Hiring a Certified Public Accountant can put a big crimp on your budget, especially if you’re still working on that return of investment. A good alternative is getting an enrolled agent. These people concentrate in preparing tax returns. And just like CPAs and lawyers, they can represent you too before the IRS.
For a more in-depth information about enrolled agents, you can check out the NAEA website . But here are some excerpts:
What is an Enrolled Agent?
An Enrolled Agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.
How can Enrolled Agent help me?
Enrolled Agents advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. Enrolled Agents’ expertise in the continually changing field of taxation enables them to effectively represent taxpayers audited by the IRS.
The prime benefit of hiring an enrolled agent over a CPA is cost. More often than not, they charge less than CPAs do. They just primarily help you with your tax matters. As far as competence goes, enrolled agents are required to pass a 2-day exam given by the IRS so you shouldn’t have any problems in considering them. If you are considering one, try contacting them a bit earlier. March and April are definitely peak seasons for them.
But as any good businessman would do, learn pertinent taxation information that affects your business. It would help you down the line as you business grows and expands.
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