Deduct Everything!. Eva Rosenberg

their database of all PTIN’d tax professionals. You can look up your tax pro here: http://irs.treasury.gov/rpo/rpo.jsf. If the tax pro you are paying is not in the database, you can contact the IRS Office of Professional Responsibility (OPR) by sending an email to [email protected] and providing the name, address, business name, and any other specific information you have about this individual. The IRS will let you know if there is an error in the database or if this person is operating illegally. You can also contact the IRS OPR to get more information about a tax pro’s status if they are not in the database.

      Tip #28:

      Signature requirements. Sometimes tax professionals use TurboTax or some other consumer software to prepare your tax returns and don’t sign your tax return as the preparer. That tax professional is operating illegally. You can report that person to the IRS by filing a Form 14157. You can find more information on the IRS website here: https://www.irs.gov/Tax-Professionals/Make-a-Complaint-About-a-Tax-Return-Preparer. Incidentally, if you think this person has been squirreling away a lot of money or preparing fraudulent returns, consider turning them in to the IRS for a refund. Use Form 211: https://www.irs.gov/pub/irs-pdf/f211.pdf.

      Tip #29:

      Volunteer tax preparation services. This is the one category of tax professionals who will not be in the database, who do not need valid PTINs, and who will not sign your tax returns. If you meet certain income and/or age criteria you can get free in-person tax preparation and tax problem resolution from these sources. You may have heard about these programs. To find a VITA or TCE site in your area, please call 800-906-9887.

       • VITA—Volunteer Income Tax Assistance centers help people who earn less than $53,000 (indexed for inflation), are elderly, have disabilities, have trouble with English, or are military families. Volunteers can prepare and efile returns and help with fundamental returns, including a variety of credits like the Earned Income Credit, Child Tax Credits, and Retirement Credit.

       • TCE—Tax Counseling for the Elderly centers will help seniors with all the same things as VITA does. In addition, TCE provides counseling on a number of issues related to retirement, Social Security, and other government-related issues—and can help seniors avoid scams. TCE centers are often run by AARP (American Association of Retired Persons) at their Tax-Aide locations. You can find them all over the country: http://www.aarp.org/money/taxes/aarp_taxaide/. For more information, call 888-687-227.

       • AFTC—The Armed Forces Tax Council provides tax assistance specifically for members of the military and their families. They have on-base coordinators, worldwide, for the Marine Corps, Air Force, Army, Navy, and Coast Guard. Both the IRS and the states offer quite a number of special deferrals, allowances, and benefits for active-duty service people and their families. So, if possible, use the AFTC advisors to help you. To get more information, ask your commanding officer or call the main IRS phone number at 1-800-829-1040.

       • LITC—Most people have never heard of these Low Income Taxpayer Clinics. They are overseen by the National Taxpayer Advocate Service. Often affiliated with colleges or universities, LITCs offer free or low-cost services to taxpayers in trouble. They represent low-income individuals in disputes with the Internal Revenue Service, including audits, appeals, collection matters, and federal tax litigation. LITCs can also help taxpayers respond to IRS notices and correct account problems. Some LITCs provide education about taxpayer rights and responsibilities for low-income taxpayers and taxpayers who speak English as a second language (ESL). Use the LITC map to find one in your area: http://www.taxpayeradvocate.irs.gov/about/litc.

      Tip #30:

      How many kinds of tax professionals are there? These are the main categories of tax preparation and consultation professionals you should choose from. (Numbers in parentheses are the PTIN holders in each category):

       • Enrolled agents (EA; more than 50,000)—EAs are the nation’s tax specialists, with the highest credential that the IRS issues to tax professionals. They are licensed to work anywhere in the country and overseas, with respect to your IRS and state issues. They must complete an average of 24 hours of tax education every year (30 hours if they are a member of the National Association of Enrolled Agents). They are a perfect choice if you need individual and business tax preparation, tax planning, tax audit representation, or you have tax debts. These are their areas of specialty. Some EAs also handle estates, trusts, and nonprofit organizations. Many also offer bookkeeping and payroll services year-round.

       • Certified public accountants (CPA; more than 213,000)—CPAs are the best-known tax professionals. They are licensed by their state CPA society and/or consumer affairs departments. Their practice tends to be limited to their own state unless another state offers reciprocity. However, the IRS will accept their credentials anywhere in the United States or overseas. CPAs must also get continuing professional education, but there is no mandatory tax education requirement. Most CPAs prepare all kinds of tax returns. Some are adept at IRS audits, while a few are skilled at tax debt representation. So if you have that kind of problem, ask about their experience first. CPAs are great if you have a high-value business—especially if you are hoping to go public one day. For many CPA firms, write-up (accounting) is their lifeblood. Some firms primarily prepare tax returns for their business clients, related parties, and referrals. They are excellent if you have a nonprofit organization, which often requires an annual audit. Some offer certified audit services.

       • Tax attorneys (more than 31,000)—These people are also licensed by their state Bar and/or state consumer affairs agencies. Like CPAs, their practice tends to be limited to their own state, unless another state offers reciprocity. However, the IRS will accept their credentials anywhere in the US or overseas. Like CPAs, attorneys must also get continuing professional education, but there is no mandatory tax education requirement. You generally do not need an attorney to prepare your personal tax return. Some tax attorneys (often members of the American Bar Association Tax Section [http://www.americanbar.org/groups/taxation.html]) will have extensive, complex, high-level tax backgrounds and continuing education. Use attorneys for estate and gift planning, business succession planning, and criminal tax issues. You need their help on all contracts and agreements, especially with respect to real estate, business agreements, trusts, wills, and so on. You don’t generally need a tax attorney to help you with IRS debts. EAs and CPAs can help you with that. You might need an attorney to represent you on complex foreign bank account and asset issues. However, some EAs and CPAs can help with the noncriminal areas of foreign account reporting.

       • State-licensed professionals—Of all fifty of the United States, only three have any licensing requirements for tax professionals. They are California, Oregon, and Maryland. Tax preparers in these states must pass a test and take a certain number of hours of continuing education in taxes and ethics each year. If you live in one of these states, make sure your tax preparer is either licensed by the state or is an EA, CPA, or attorney. Note: Attorneys and CPAs licensed in other states, but practicing in CA, OR, or MD, may have to register with these states’ tax preparer programs. No one else may charge you to prepare a tax return. These tax professionals are limited to preparing a tax return and to answering the IRS’s or state’s questions about the tax return that they prepared. That’s it. They are not permitted to represent you at any levels of the IRS with respect to balances due, collections, appeals, notices, or anything else. However, they may be able to help with some of your state tax department issues.

       • Annual Filing Season Program Certificate of Completion (AFSP; more than 43,000)—In 2014, the IRS instituted a voluntary program to allow unlicensed tax professionals in 47 states to demonstrate a higher level of training and expertise. These people have all the same