lifetime events - tax planning
TRANSCRIPT
Preparing for Life’s Important Moments
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Life is Complicated – Especially Money Matters
• You will encounter several weighty financial milestones during your lifetime
- Marriage
- Children
- College
- Retirement
• One significant recurring financial event is your annual tax return, which is often overlooked as a resource for planning
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Tax Planning Is More Than Just April 15th
• Most financial events, significant and routine, have tax consequences
• Most people think about their taxes after April 15th but don’t know who to call
• After April 15, attention shifts to understanding your taxes, instead of filing your return
• CPAs are trusted advisors 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 the life – college education, aging parents, retirement, etc.
• Address strategies to resolve immediate issues and identify tax savings opportunities for the long-term
• Apply all of the objectivity, integrity and diligence you expect from a CPA
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Selecting a CPAwww.wrightaccountingcpa.com
• Relationship and trust
• Education, qualifications and credentials
• Complex tax knowledge
• Year-round availability
Navigating the Tax Services Marketplace
• Differentiating between various tax return preparers
• Factors to evaluate:
- Training
- License – do they have one?
- References
- Approach
• Where CPAs provide additional value
New Return Preparer Initiative
• IRS’ objective: To elevate the compliance level and ethical conduct of tax return preparers.
• Everyone who prepares a return must get a PTIN
• CPAs have unlimited practice rights before IRS and are not subject to additional oversight regulations
• IRS added new category of tax return preparer called “Registered Tax Return Preparer”
- Sets minimum standards for unlicensed preparers
- Limited practice rights before IRS
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CPAs vs. Other Tax Preparers
• Licensed to practice accountancy, provide tax services
• College degree to sit for rigorous exam
• Professional code of conduct & ethics exam
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The CPA Credential
• College degree (150 semester hours)
• Rigorous 4 part-CPA exam (14 hours)
• 40 hours of continuing professional education each year
• Licensure by State Board of Accountancy
The Value of the CPA
• Year-round services that go beyond tax
• Broad base of knowledge
• Specialized training
• Honesty & integrity - keystones of the profession
• AICPA enforceable code of conduct specific to tax services
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Copyright © 2011 American Institute of CPAs
Copyright © 2011 American Institute of CPAs
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