Alvaro Gonzalez | Moments | Getty Images
Accounting has a reputation for long hours and stressful deadlines, leading college students to choose other high-paying jobs in the financial field, such as investment banking, consulting, and data analysis.
Declining birth rates are also contributing to the shortage of accountants, said Henry Guses, principal manager of tax and ethics at the American Institute of Certified Public Accountants.
“This reflects a decline in the number of people pursuing degrees that enable them to sit for the CPA exam, but also the fact that there are fewer students overall. ” Guses said.
While the 2020 and 2022 results may have been affected by the COVID-19 pandemic, the spike in new test takers in 2010 and 2016 reflects changes in the CPA exam, Guses says. he says.
Therefore, to address the attrition of new professionals in the field and “expand the CPA pipeline,” the CPA exam format will face changes that go into effect this year, Guses said.
In 2024, New CPA exam It consists of three main sections: Financial Accounting and Reporting, Auditing and Attestation, and Taxation and Regulation. Candidates take additional exams in selected areas, including Business Analysis and Reporting (BAR), Information Systems and Control (ISC), and Tax Compliance and Planning (TCP).
“That's why the exam was changed, to make that designation available to more people. The CPA designation is a very important standard,” Guses said.
However, it will take time for these efforts to be reflected in the market. For now, there are a few things you can do if you need an accountant this tax season.
If you can't hire an accountant or CPA to handle your taxes, it may be safer to use a registered agent.
registered agent According to Tommy Lucas, a certified financial planner and registered agent with Moisand Fitzgerald Tamayo, they are experts who focus solely on taxes and offer three exams directly through the IRS: , business declaration exam, and ethics exam). Orlando, Florida.
Some taxpayers only maintain a Taxpayer Identification Number or PTIN. They can certainly prepare and file tax returns, but he can't represent the taxpayer to the IRS in case of a notice or audit, Lucas said. I added.
However, tax accountants, certified public accountants, and registered agents may represent taxpayers.
“If a client receives a notice, I can contact the IRS on their behalf,” Lucas said.
There are many free and paid tax filing options available to consumers online.
Paid tax software may have options for expert support, such as TurboTax, H&R Block, and TaxSlayer. All of these platforms have access plans that offer some kind of professional support at a higher price.
However, before entering your personal information into an external tax filing platform, make sure you fully understand the costs and expertise of the platform's professionals providing tax support.
The IRS has A program that provides basic tax return preparation for free For eligible individuals: Volunteer Income Tax Assistance (VITA) and tax counseling for seniors.
In addition to obtaining a PTIN, make sure your volunteer workers complete the annual filing season program.
“This gives you at least the basic knowledge to prepare a simple personal tax return,” Lucas explained.
If the CPA you want to work with isn't accepting new clients during tax season, see if you can negotiate for help later this year, Lucas says.
To obtain an automatic six-month extension, you must: Form 4868 Online through IRS Free File. or electronic payment Selecting “Extension” as the reason adds an automatic six-month extension without filing Form 4868. You must pay any taxes owed by the April deadline.
In the meantime, keep all your documents organized. That's “the number one thing to stand out,” Lucas says.
Hiring someone to do the additional work of organizing your records not only creates more work for your tax preparer, but you may also receive a higher fee.
”[Those] They just give you all the receipts and bank statements and you have to do the bookkeeping off of that…It's very frowned upon,” Lucas said.
