Difference Between a CPA Tax Specialist and a Seasonal Tax Preparer
CPA Tax Specialist
CPA Tax Specialist | Tax planning and filing is a year-long activity. Many businesses and individuals make the mistake of leaving the task to the end. In the tax season, they have to rely on seasonal tax preparers. It can save you on professional fees but the consequences of filing tax returns in a short period can be costly.
Seasonal tax preparers are also qualified tax professionals. Usually, enrolled agents work as seasonal tax preparers. Some accountants and attorneys can also represent you as a seasonal tax preparer. Their job is to offer services in the busy tax season to businesses and individuals with IRS tax preparations, filing, and representation in some cases.
There are some key differences in services offered by a CPA tax specialist and a seasonal tax preparer. Let us briefly look at which option is the right one for you.
What Does a Seasonal Tax Preparer Do?
Seasonal tax preparers are qualified professionals who are familiar with tax laws, regulations, and procedures to file tax returns with the IRS.
The primary role of a seasonal tax prepare is to facilitate clients in busy tax season in IRS tax filings. These tax professionals are fully qualified to prepare, file, and represent your tax returns with the IRS.
Some key services offered by seasonal tax preparers include:
- Advice on tax preparation
- Advice on accounting and bookkeeping records
- Tax filing for individuals, businesses, corporations, and other entities.
- IRS audit representation
- Representation in the IRS appeals and refunds
Seasonal tax preparers are experienced and well-versed with IRS tax regulations. They can represent and file your tax returns in a busy tax season. They also keep themselves aware of regulatory changes that may affect your tax returns.
What Does a CPA Tax Specialist Do?
A CPA tax specialist can assist you with tax preparation, planning, filing, and the IRS audit representation as well. CPA tax specialists are qualified for other fields of business as well.
In addition, a CPA tax specialist can offer advice on accounting, finance, business consulting, payroll, tax, and transaction advisory services to name a few. Thus, the role of a CPA tax specialist widens to business consulting services than merely tax representation.
CPA tax specialists can work with you throughout the tax year. They can offer advice on tax and business management that affects your tax filing at the year-end. Hence, you can work with a CPA tax specialist to prepare a comprehensive tax plan that fits your needs.
Here are some key services offered.
- Accounting and Bookkeeping
- Tax Planning and Compliance
- Business Consultation
- Budgets and Cash Flow Management
- Debt Restructuring
- Financial Management
- Transaction Advisory Services
- Payroll Management
- Retirement, Succession, and Estate Planning
The role of a CPA tax specialist includes a wider scope of services. It takes the role of a leader and advisor. A CPA tax specialist can also come with industry specialization that offers added advantages to clients. For instance, a dental CPA tax specialist would offer tailor-made tax advice to dental practices.
When You Should Hire A Seasonal Tax Preparer?
Both tax professionals offer some benefits in different scenarios. You can choose a tax specialist depending on your needs and the availability of the professional. If you want someone to file for tax returns in a tax season only, a seasonal tax preparer is your go-to person.
You should hire a seasonal tax preparer when:
- tax filing as an individual or a small business
- short on time
- need only tax representation before the IRS
- want to consult a tax professional for seasonal provisions and changes in tax regulations
- revenues are smaller and do not require comprehensive advice
- regular accountant or CPA is unavailable
When Should You Hire?
As we discussed above, a CPA tax specialist can offer a wider range of services than a seasonal tax pro. You should carefully evaluate the needs for tax preparation, business consulting, and financial management before deciding on hiring a tax professional.
You should hire a CPA tax specialist if you are in one of the following situations.
- need a comprehensive tax strategy and planning
- You need tax restructuring
- selling or buying a new business during the tax year
- revenues are larger and complex
- need advice on financial management
- want tax liability reduction and compliance
- business owns large value assets (tangible and intangible)
- You need a professional to work with you year-round
- need transaction advisory services such as a dental practice transition