What do credentials mean to you?

**What do Tax Preparer Credentials & Qualifications mean for you?**

Anyone who prepares federal tax returns must have an IRS Preparer Tax Identification Number (PTIN). However, tax professionals have differing levels of skills, education and expertise.

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 and have also met extensive experience and good character requirements established by their respective boards of accountancy. Additionally, 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. Learn more about this program.

Honorable Mention

Beginning January 1, 2016, tax practitioners who do not hold any of the above credentials have no authority to represent clients before the IRS (except regarding returns they prepared and filed December 31, 2015, and prior). Although some credentials are not given representations rights they still represent a valuable area or specialization or expertise and are often held to similar continued education requirements.

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.)

Any Tax Practitioner may provide quality return preparation services, but choose carefully. Always inquire about their education and areas of expertise.

Questions?