Contact a CPA

[HV Ken]

Hey - I didn't start my rant to get into a CPA vs. EA debate. Go back and read my original post that started this thread!

I have fixed tax returns that were done wrong by both CPAs and EAs. Just fixed one recently that was done by a CPA that apparently didn't seem to know the current dependency rules (took 20yo non-college student child with > 10k wages as dependent on parent's return). So what! A title is a great accomplishment and certainly something to be proud of, but it does not make anyone a lifetime expert. Nor does mere years of experience. Staying current and educated keeps all of us relevant and a source of value to our clients.

[mcb39]

Amen to HV KEN.! I have no interest in being anything other than a respected tax preparer. We are supposed to be professionals on this board. I, also, have fixed returns prepared by all sorts of designees. That does not make me perfect, nor does it say that I have never made a mistake. I just happened to catch some errors that others had made. Please, let's help each other here. I am still agonizing about the RTRP test; not because I am afraid to take it, but because I have to travel a long distance to take it. That will be the only title I will ever want or need; and only because it is mandatory.

[michaelmars]

i think you are all mixing apples and oranges. when i took the cpa exam there was some on tax theory but no real tax knowledge questions. And even so, tax laws change every year, so what you knew when you took a test, ans test, is not relevant to today. CPA's are licensed to prepare financial statements. Anyone can be a tax preparer, even a barber or shoe shine guy [at least till recently] and an EA that only does tax probably has more experience than a cpa who spends only part of his time doing taxes. i am glad i am a cpa but that doesn't really mean anything except that i crammed for a test almost 30 years ago and passed. Experience since then makes you good or bad as a preparer. My senior staff guy is not a cpa or an EA and he is paid almost double my three staff cpa's and he deserves it. Continuing education argument is crap since if someone wants to learn and keep updated they will and someone who is forced to take cpe can just buy the credits from some of the online cpe providers. Cal tax institute has 24 credit courses for around $100 and they are so simple my secretary can answer the questions or find the answers in a second from their materials. We can be forced to take and pay for classes but we can't be forced to learn or to even use what we do learn. Having a CPA after my name does open more doors due to public perception but when i have an issue i don't care about the title of whomever is helping me, just if i trust their knowledge and judgement.

btw - i may be wrong but i don't think jainen has a cpa or an ea, anyone want to debate tax knowledge with him? I don't

[jainen]

>>jainen has a cpa or an ea<<

I used my free classes as an HRB employee to pass the EA exam in 1992, the same year we parked our pencils and learned ORRTAX. Learned a lot since then, too, but I never figured out what this argument is about.

[BulldogTom]

Bulldog, do you have a bar in your tax office? I'm sure you'd get lots of clients. And, I hear the mark-up on alcohol is much better than our profit margin preparing taxes! No drinks until tax prep bill is paid.

Lion, I actually had an idea for a bar called "uncle sam's" where you could get a tax return done in the back. I think drunk clients would be more cooperative than ones who have been rehearsing how to tell me that they qualify for HOH and EITC while living with their girlfriends.

Tom

Lodi, CA

[Lion EA]

I think you're right, Tom. Drinks BEFORE tax preparation! (Preparers, too?!)

[michaelmars]

I seriously have a bar in the office, the good is that clients see the top shelf scotch i like and i get lots of gifts, the bad....clients tend to stay costing me time.....my whole office has 1-2 drinks on fridays and also on days like 3/15 after the deadline we kick back a bit.

[kcjenkins]

Now I know Mike is kidding, just pulling chains, so please do not start flaming him.

Actually, we all know that the CPA designation has relativity little tax requirements, and lots and lots of auditing requirements, as it should. A CPA's primary purpose is to be the eyes and ears of the the Public who owns stock in businesses that they are not personally involved with. Tax work is what SOME CPAs specialize in, but for many CPAs it's a small part of their business, which is primarily auditing companies.

EAs on the other hand, specialize in tax work. Thus many of them are much more knowledgeable about TAXES than some CPAs. But no one can generalize about either group.

[OldJack]

Most of you evidently think a CPA's primary work is auditing! True that is a prime source of CPA income.

But that client that gets audited has to have a tax return prepared for his business and his personal taxes. Therefore, every client the CPA serves is a tax prep job and most of them are much more difficult tax returns than the H&R Block type customer. If the return wasn't involved the client would just use anyone to prepare the return. Most of my clients tax returns take a day or more to complete, not 15 minutes. If you think most CPA's don't prepare and know taxes you are living in a dream world of ignorance.

[joanmcq]

One thing I tend to think is that we CPAs tend to know more accounting, which is essential for doing complex business returns. I never wanted to do financial statements, but that training has been quite useful in translating my UK client's foreign financial statements into GAAP for the Form 5471. An accounting background is not a bad thing when doing biz tax returns.

That said, all I wanted to do was tax, but had never heard of an EA designation when I was getting my degree. I do think my MSBA (taxation) degree does say something about the amount of tax I know, and the depth of that knowledge. If I had just done the EA, I wouldn't have had to do two years + in the salt mine of a CPA firm, but then again, I wouldn't have the depth of knowledge I have regarding all types of returns, plus the financials backing them.

[Randall]

Beam me up, Scotty!

[BulldogTom]

Unless we are talking about building a bar in our office, I am staying out of this one. I think Margaritas go great on 4/15.

Tom

Lodi, CA

[Margaret CPA in OH]

Margaritas go great any time. Like Mondays at El Coyote when all are half price. And I can walk home. I've had the odd business meeting there. Always a gooooood outcome....for both of us.

[Pacun]

Margaret,

At half price, I don't think I would be able to walk home.

[ILLMAS]

I'm I the only one that gives up having a drink for lent?

[Lion EA]

I gave up sleep for Lent. Or, maybe, that was for tax season!