“The important thing to keep in mind is that the taxpayer is ultimately responsible for submitting a timely and correct return, whether the preparer comes out of a penthouse office or a cardboard box,” said Betsey Buckingham, EA, an enrolled agent in Troy, OH, and board member of the National Association of Enrolled Agents (NAEA).

Recently, Consumer Reports staged a contest of usability and accuracy between the two leading tax software packages. Employing profiles of four hypothetical families endowed with typical taxpayer issues, a Consumer Reports Money Adviser staffer entered the information into each
of the software programs and evaluated each for its ease of use. The accuracy of the resulting tax forms was evaluated by an enrolled agent, a tax practitioner who is licensed by the U.S. Department of the Treasury.
Results showed that neither product was perfect in evaluating the data, particularly in more complicated tax situations.

“The decision to use tax prep software or hire a preparer is not one to be taken lightly,” said Buckingham. “Taxpayers need to consider what they’ll do if they wind up getting audited. Only an enrolled agent, certified public accountant or attorney may represent a taxpayer before all administrative levels of the IRS for appeals, audits or collections.

While some might not mind going it alone, most people feel better when they have a licensed preparer to represent them”

Ultimately, it all comes down to the fine print above the signature line on your tax return: “Under penalty of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and
complete.” In other words, the buck stops here!

If you need assistance finding a licensed tax preparer in your area, go to www.naea.org and click on “Find an Enrolled Agent.” Unlike attorneys and CPAs, who may or may not choose to specialize in taxes, all enrolled agents (EAs) specialize in taxation and may only receive the EA
designation after demonstrating their competence before the IRS.

Gregory Herrick , 22 February 2007 @ 00:25 AM  EA's do not demonstrate competence be fore IRS While the article is good and most times puts forth a fair statement of facts. I do not believe EAs "demonstrate their competence before the IRS but do pass a written examination which tests their knowledge of tax law and its application. To "demonstrate" implies a visiual display of skills which the current examinations do not require. Not all EAs are knowledgable past the point of passing the exam in tax matters they normally do not deal with. Yes, the same can be fairly said about CPA's and Attorneys. William H.,CPA CA

Hugh Hoskins , 17 February 2007 @ 13:54 PM  Tax Prep Sftwre put to the test = PAID AD FOR "EA's" The article "staged a contest between TWO? out of the box software packages with data input by a CR staffer with unknown knowledge of taxation even of a 1040EZ. The it was reviewed by ONLY an EA. Data wasn't given to THAT "EA" and CPA's & Tax practicing Attorney's (in 30 years I have only met 2 attorney's that PREPARE tax returns and they prepared form 706!) "ONLY EA's do nothing but tax! WoW do they understanding (really understand) accounting when it comes to 1040 Sch C, 1065's etc the technical conversion between accrual & cash basis accounting???? IT WASN'T ANY ARTICLE ABOUT TAX PREP SOFTWARE, OTHERWISE IT WOULD HAVE EMPHASIZED THE RESULTS. IT WAS MERELY AN AD FOR EA"s "Who only specialized in tax! Hugh Hoskins, CPA