Match the Professional to the Job
In California a paid tax preparer must be registered with the California Tax Education Council (C.T.E.C.) unless the preparer is an Attorney, Certified Public Accountant (CPA), or Enrolled Agent (EA). C.T.E.C. registration is not a certification or license; it means the preparer has had a certain number of tax education hours, adheres to a code of conduct and carries a bond. There is no such thing as a certified tax preparer in California. New Jersey does not have registration requirements.

Your needs determine the type of professional you choose. Paying an Attorney to prepare a 1040EZ doesn't make any more sense then paying a seasonal preparer at a big box store to set-up a complex tax shelter.

• Applied Advisor: Appropriate for all individual tax returns including sole proprietors, landlords, and contract workers. Applied Advisors' fees are fair, competitive and affordable. Our tax preparation fees are even better when you consider your tax return is prepared by a financial planning professional not a seasonal employee. The focus here is individuals and therefore partnership, estate, or corporate tax returns are best handled by others.

• Attorneys: Appropriate for complex tax situations and the only professional with whom attorney-client privilege exists.

• CPAs and accountants: All types of tax preparation, individual, partnership, corporations, estate, gift and so on. Most individuals do not need the advanced training and associated high cost of a CPA.

• Enrolled Agents: All types of tax returns. EAs have passed a test administered by the Internal Revenue Service and are able to represent you before the IRS.

• Big Box Stores: The big names use seasonal employees with no initial educational requirements other than those required for C.T.E.C registration. Good for simple to average returns, but high prices generally don't reflect the limited background and education of the preparer.

• Software: Great for do-it-yourselfers. Best for simple returns, good for more complex returns if you are willing to do your homework. Only appropriate if you understand the sections of the tax code that apply to you.

Applied Advisor LLC is an authorized e-file provider.