If you don’t have a tax preparer, a good way to find one is to ask friends and advisors (such as an attorney you know) for referrals. Be sure the person you choose has a preparer tax identification number (PTIN) showing they are authorized to prepare federal income tax returns.2
Be sure to inquire about how much they charge in fees. This, of course, depends on the complexity of your return. Avoid using a firm that takes a percentage of your refund. The IRS website has tips for choosing a preparer and a link to the IRS directory of preparers, which you can search by credentials and location.3
Gather Your Documents
You should receive all the tax documents you need from your employer or employers as well as from banks, brokerage firms, and others with whom you do business by the end of January.9 Check that the information matches your own records on each form.
These are some of the most common forms:
Form W-2 if you had a job.10
The various 1099 forms that report other income you received, such as dividends (Form 1099-DIV), interest (Form 1099-INT), and nonemployee compensation paid to independent contractors (Form 1099-MISC).111213 Brokers aren't required to mail Form 1099-B, which reports gains and losses on securities transactions, until mid-February, so those may come a little later.1415
Form 1098 for reporting any mortgage interest you paid.16
For 2020, the typical cost for tax preparation using Form 1040 was $220 when the standard deduction was taken and $323 when deductions were itemized, according to a survey from the National Society of Accountants.
Expertise of the preparer. The credentials of the preparer (explained later), as well as their experience, also have an impact on the fees that are charged. For example, a certified public accountant (CPA) usually charges more than an enrolled agent.
Certified public accountant (CPA): a person who has passed the Uniform CPA examination and is licensed as a CPA. A CPA may specialize in tax preparation and planning.
Enrolled agent: a person who has passed the Special Enrollment Examination and has completed continuing education courses. Like attorneys and CPAs, an enrolled agent has unlimited representation rights before the IRS.7
Annual filing season program participant: a person who is not an attorney, CPA, or enrolled agent but has completed the IRS’s Annual Filing Season Program. Such a person has limited representation rights before the IRS.
PTIN holder: a person who is not one of the above but has obtained a Preparer Tax Identification Number (PTIN) to file tax returns this filing season; they have limited representation rights before the IRS.8
In 2021, the average cost of hiring a certified public accountant (CPA) to prepare and submit a Form 1040 and state return with no itemized deductions was $220, while the average fee for an itemized Form 1040 and a state tax return was $323.9 Costs will go up as the complexity of a return increases.
The difference in cost between an accountant and a tax preparer depends on the individual. Because a certified public accountant often can provide financial services beyond basic tax preparation, they may be more expensive than hiring a tax preparer to file basic taxes.
The IRS has tips for choosing a preparer. Check a preparer’s credentials, including whether they have a valid PTIN for this filing season, through the IRS Directory of Federal Tax Return Preparers.
Before you agree to work with a preparer, ask for a quote on the fees you’ll be charged. While fees alone should not be the basis for selecting a tax return preparer, it is an important factor to consider.
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https://www.irs.gov/tax-professionals/choosing-a-tax-professional
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Be sure to check our tips for choosing a tax preparer and how to avoid unethical "ghost" return preparers.
Anyone can be a paid tax return preparer as long as they have an IRS Preparer Tax Identification Number (PTIN). However, tax return preparers have differing levels of skills, education and expertise.
Learn about tax preparer credentials and qualifications. Watch Choose a Tax Preparer Wisely. Get information on the Volunteer Income Tax Assistance (VITA) program.
Our Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help you find preparers in your area who currently hold professional credentials recognized by the IRS, or who hold an Annual Filing Season Program Record of Completion. You can also check the professional organizations many tax preparers belong to.
Tax return preparer fraud is among the list of common tax scams.
The IRS provides tips on avoiding unscrupulous tax preparers and is committed to investigating paid tax return preparers who act improperly.
Make a complaint if you have been financially impacted by a tax return preparer's misconduct or improper tax preparation practices.
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Understanding Tax Return Preparer Credentials and Qualifications
Any tax professional with an IRS Preparer Tax Identification Number (PTIN) is authorized to prepare federal tax returns. However, tax professionals have differing levels of skills, education and expertise.
An important difference in the types of practitioners is “representation rights.” Here is guidance on each credential and qualification:
Unlimited Representation Rights: Enrolled agents, certified public accountants, and attorneys have unlimited representation rights before the IRS. Tax professionals with these credentials may represent their clients on any matters including audits, payment/collection issues, and appeals.
Enrolled Agents – Licensed by the IRS. Enrolled agents are subject to a suitability check and must pass a three-part Special Enrollment Examination, which is a comprehensive exam that requires them to demonstrate proficiency in federal tax planning, individual and business tax return preparation, and representation. They must complete 72 hours of continuing education every 3 years. Learn more about the Enrolled Agent Program.
Certified Public Accountants – Licensed by state boards of accountancy, the District of Columbia, and U.S. territories. Certified public accountants have passed the Uniform CPA Examination. They have completed a study in accounting at a college or university and also met experience and good character requirements established by their respective boards of accountancy. In addition, CPAs must comply with ethical requirements and complete specified levels of continuing education in order to maintain an active CPA license. CPAs may offer a range of services; some CPAs specialize in tax preparation and planning.
Attorneys – Licensed by state courts, the District of Columbia or their designees, such as the state bar. Generally, they have earned a degree in law and passed a bar exam. Attorneys generally have on-going continuing education and professional character standards. Attorneys may offer a range of services; some attorneys specialize in tax preparation and planning.
Limited Representation Rights: Some preparers without one of the above credentials have limited practice rights. They may only represent clients whose returns they prepared and signed, but only before revenue agents, customer service representatives, and similar IRS employees, including the Taxpayer Advocate Service. They cannot represent clients whose returns they did not prepare and they cannot represent clients regarding appeals or collection issues even if they did prepare the return in question. Tax return preparers with limited representation rights include:
Annual Filing Season Program Participants – This voluntary program recognizes the efforts of return preparers who are generally not attorneys, certified public accountants, or enrolled agents. It was designed to encourage education and filing season readiness. The IRS issues an Annual Filing Season Program Record of Completion to return preparers who obtain a certain number of continuing education hours in preparation for a specific tax year.
Beginning with returns filed after December 31, 2015, only Annual Filing Season Program participants have limited practice rights. Learn more about this program.
PTIN Holders – Tax return preparers who have an active preparer tax identification number, but no professional credentials and do not participate in the Annual Filing Season Program, are authorized to prepare tax returns. Beginning January 1, 2016, this is the only authority they have. They have no authority to represent clients before the IRS (except regarding returns they prepared and filed December 31, 2015, and prior).
Directory of Federal Tax Return Preparers with Credentials and Select Qualifications: To help taxpayers determine return preparer credentials and qualifications, the IRS has a public directory containing certain tax professionals. The searchable, sortable database includes the name, city, state, and zip code of attorneys, CPAs, enrolled agents, enrolled retirement plan agents, and enrolled actuaries with valid PTINs for 2022, as well as Annual Filing Season Program Record of Completion recipients.
Reminder: Everyone described above must have an IRS issued preparer tax identification number (PTIN) in order to legally prepare your tax return for compensation. Make certain your preparer has one and enters it on your return filed with the IRS. (They are not required to enter it on the copy they provide you.)
Tax return preparers who have PTINs but are not listed in the directory may provide quality return preparation services, but choose any return preparer wisely. Always inquire about their education and training.
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Individual Taxpayers: Tax Changes for 2023
What individuals and families need to know about inflation adjustments and tax changes for 2023.
YES
Anderson Group CPAs: http://www.agroupcpas.com
2165 NW Professional Drive, Suite 101 Corvallis, OR 97330 Phone: (541) 757-2070 | Fax: (541) 757-6313 info@agroupcpas.com
INQUIRY SENT 1/24/23
NO: Books and Done: https://booksanddone.com
YES
Byzick: https://www.byzick.com multiple locations across California and Oregon. https://www.byzick.com/corvallis
2015 NW Grant Ave
Corvallis, OR 97330
P: (541) 754-0112
https://www.byzick.com/contact-us
INQUIRY SENT 1/24/23: Unfortunately, we are not taking on new clients at this time.
H & R Block: 2539 Nw Kings Blvd Corvallis, OR 97330 (541) 753-2933; https://www.hrblock.com/tax-offices/make-appointment
YES
Hendrick and Kellison: https://www.hendrickandkellison.com
Michele Kellison, CPA, CFP™ + several employees
Webform: https://www.hendrickandkellison.com/contact.html
PHONE: (541) 753-5441 FAX: (541) 754-7449 520 NW OAK AVENUE, SUITE C CORVALLIS, OR 97330
https://www.hendrickandkellison.com/client-login.html
INQUIRY SENT 1/24/23: Unfortunately, we are not accepting new clients at this time. It is possible we will have a few spots available after May if you want to check back.
YES
Hughes & Hlawaty: https://www.jhughescpa.com
Jamie Hughes, CPA
Hans Hlawaty, CPA
883 NW Grant Avenue Corvallis, OR 97330 Telephone: (541) 758-9003
Phone only
Jackson Hewitt. 919 NW Circle Blvd., Ste C, Corvallis, OR 97330. (541) 757-8299
NO: Scott Meeker CPA: https://www.meekercpa.com
Going forward, we are limiting new tax clients to those individuals that also hire us to manage their investment assets. In addition to being a CPA, I am also a registered investment advisor & partner of Spectrum Strategic Capital Management, LLC (www.sscapm.com). For 20 years I have experienced the synergies delivered by combining tax planning, investment advisory, financial planning and execution in one place. Minimum investment level is $200,000.
MAYBE
Stover, Neyhart, & Yee: http://www.stoverneyhart.com
806 NW BUCHANAN AVENUECORVALLIS, OR, 97330541-754-1144
NO: Tax and Wealth Management: https://www.taxandwealthmanagement.com/
Focuses on investments but aren't fiduciary
YES
Tornberg Larson: https://www.tltaxconsulting.com (541)760-3585
Rene Tomberg, CPA (looks like she focuses on small businesses)
April Larson, EA, LTC (Licensed Tax Consultant, Oregon)
Phone only
NO
Witt Consulting: https://www.wittconsulting.com; a couple