Preparing for Life’s Important Moments

Updated December 12, 2011

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

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

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

Selecting a CPA

• 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 preparers 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

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

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

QUESTIONSQuestions

Copyright © 2011 American Institute of CPAs

Copyright © 2011 American Institute of CPAs

Thank you