Your Miami Beach tax audit CPA Can Represent Your Business Before the IRS – But who else?
Tax audits are no fun, but of course you already knew that. About 2.5% of small businesses are audited every year, where the IRS takes a closer look at tax returns, verifying that income and deductions all check out. There are various triggers for a tax audit including reporting a loss year after year or even reporting a high income of over a million dollars.
Your Miami Beach tax audit CPA can represent your business
Technically speaking anyone can practice before the IRS, you can even represent yourself or have a relative do the job. If you have employees or a business partner, that would also work. You can employ an un-enrolled preparer. That’s anyone that you pay to prepare your business’ tax return, but that is not a certified public accountant or an attorney. He or she can’t be an enrolled agent either, because those have passed a three-part comprehensive IRS test covering tax returns and represent the highest IRS credential. This award includes 72 hours of continuing education courses every three years.
CPAs and accountants
Both certified public accountants and accountants can represent your business in a tax audit. All CPAs are accountants, but not all accountants are CPAs. Accountants are financial and tax professionals that follow the Generally Accepted Accounting Principles set by the Financial Accounting Standards Board. The IRS considers them un-enrolled preparers. But CPAs have also passed a licensing exam in the state in which they practice. There’s continuing education involved as well. In other words, accountants aren’t licensed.
Charges of evasion, tax fraud or mishandling can lead to big problems, which is why some people have to go with an attorney, not a CPA. Also, if you plan on bringing suit against tax court, a tax attorney would be the way to go because they’re familiar with the courtroom. Their focus is on legal implications of tax issues.
If you need a tax audit representative to practice on your behalf before the IRS, call Your Miami Beach tax audit CPA at 305.868.7620.