Preparing for life’s important moments

Life is complicated

• You may encounter several financial milestones during your lifetime:

– Marriage

– Children

– Divorce

– College

– Retirement

• One significant recurring financial event is your annual tax return, which often is overlooked as a resource for planning.

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Tax planning is more than just April 15

• Most financial events — significant and routine —have tax consequences.

• Most people think about their taxes only leading up to due date.

• CPAs are trusted advisers who assist with a variety of financial issues and their tax consequences year-round.

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A CPA’s approach• Take a holistic view of your life using your tax return as a guide.

• Integrate tax considerations into your entire financial picture.

• Consider how decisions affect other areas of life — college education, aging parents, retirement, etc.

• Address strategies to resolve immediate issues and identify tax savings opportunities for the long term.

• Apply objectivity, integrity and diligence you expect from a CPA.

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• Differentiating between various tax return preparersFactors to evaluate:– Training/experience– License – References– Approach

• Where CPAs provide additional value

Navigating the tax services marketplace

The CPA credential

• College degree (150 semester hours)

• Rigorous four-part Uniform CPA Examination (14 hours)

• 40 hours of continuing professional education each year

• Licensure by a state board of accountancy

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Licensed by state board of accountancy

College degree (with set number of credit hours in accounting) required to sit for rigorous exam

Professional code of conduct and ethics requirements

How is a CPA different from other tax preparers?

How is a CPA different from an unlicensed preparer?Key areas of difference

– Practice Rights — CPAs have unlimited practice rights before the IRS.

– Oversight — Other preparers (except enrolled agents and attorneys) are not regulated by a state board or the IRS.

– Ethical rules — CPAs who belong to the AICPA are also bound by its Code of Conduct and Statements on Standards for Tax Services (in addition to other rules).

Annual Filing Season Program — IRS Program for Unlicensed Preparers

– It encourages continuing education and provides a Record of Completion for unlicensed preparers.

– It requires participants to obtain about 18 hours of continuing education.

– Participants have limited practice rights before IRS.

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Issues to consider:– Tax savings for current or future years– Help with the IRS (notices, audit)– Assistance understanding complex

new tax law– Long-term tax planning (and saving)– Questions that are not asked by

the software – Accountability — What do you know

about the person on the other end of the phone?

Tax preparation software

The value of the CPA

Year-round services that go beyond tax

Broad base of knowledge

Specialized training

Honesty and integrity — keystones of the profession

AICPA enforceable code of conduct specific to tax services

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