[quote=sdduuuude]There is a distinction between a CPA and an accountant that is not a CPA. A CPA can practice in front of the IRS. An accountant who is not a CPA may not practice in front of the IRS, but that doesn’t mean they aren’t good at preparing taxes, and they are likely less expensive.
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I am a CPA. I used to work for a big firm. I worked in tax & then moved over to audit. Now I work in private industry. You do NOT need a CPA license to represent a client in front of the IRS.
The CPA license was created to allow for independent attestation engagements. The CPA license provides an accountant with the right to audit or review a company as a certified independent party. That’s it. The CPA license itstelf has very little to do with tax preparation. There is a small portion of the CPA exam that addresses individual & corp tax prep, but the license is absolutley not required for be a recognized agent by the IRS.
For simple returns, if you have W2 wages & a schedule A a CPA will basically do the same thing you would do in preparing the return. He drops the numbers into the software & out comes a return. Granted the programs we use (like Lacerte) are very sophisticated & perform diagnostics that is well beyond the turbotax caliber software. For simple returns, you’re getting piece of mind that your return is most likely done correctly & you personally don’t have to hassle with preparing the return yourself.
Where a taxCPA really earns his keep is in the planning process – advising clients before making business decisions that have considerable tax implications. They are absolutely invaluable for planning & preparing complex returns.
But for a return like the one described at the beginning of this thread, once the year is over, we’re all just reporting on historical items. You have your pile of W2s & 1099s, the CPA will do basically the same thing you are going to do. They don’t have a magic wand.
