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Tax Preparer or CPA: Which Do You Actually Need?
Elite Pro-Tax is not a CPA firm, and we say so plainly. Most returns do not need a CPA. Some situations do, and this page explains the difference.
Reviewed by LaToya Clark-Thompson, FounderLast updated
What kind of firm we are
Elite Pro-Tax & Financial Services is an independent tax and accounting services firm in Easley. It is not a CPA firm and does not present itself as one. Founder LaToya Clark-Thompson leads the firm and holds the IRS Annual Filing Season Program (AFSP) Record of Completion.
We prepare and file individual and business returns, including past-due and amended returns, and we provide bookkeeping, payroll, business formation and S corporation setup. More about LaToya and the firm is on the about page.
What the AFSP Record of Completion is
Anyone paid to prepare federal returns must have a Preparer Tax Identification Number (PTIN). Beyond that, the IRS runs the Annual Filing Season Program, a voluntary program it describes as recognizing the efforts of non-credentialed preparers who aim for a higher level of professionalism. To receive the Record of Completion, a preparer:
- Completes the required continuing education for the year, including a federal tax law refresher course with a test
- Consents to the practice obligations in Treasury Department Circular 230
- Holds a current PTIN
As the name says, it is annual: it has to be earned again each year. Holders appear in the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications, which you can search on irs.gov. The IRS’s own [program page](https://www.irs.gov/tax-professionals/annual-filing-season-program) is the authority on the details.
To be precise about what it is not: the Record of Completion is not a CPA license, and it is not the same as the unlimited representation rights that CPAs and attorneys have before the IRS.
Who genuinely needs a CPA
There are situations where a CPA is the right professional, and we will tell you when you are in one:
- Audited or reviewed financial statements, the attest work that lenders, bonding companies, investors or grant funders sometimes require. Only a licensed CPA firm can provide that
- Representation before the IRS or the South Carolina Department of Revenue in an examination, collection matter or appeal
- Situations where you need a licensed professional to sign off on financial statements for a third party
For most individual returns, self-employed returns and small business returns, a CPA is not required. What matters is that the preparer is careful, current on the law, and willing to explain the return to you.
How we handle matters that need representation
Elite Pro-Tax maintains a professional working relationship with an independent licensed CPA. When a matter needs representation, such as an audit or a collection case, it goes to the independent licensed CPA we work with, and our office coordinates: gathering records, preparing any returns that need to be filed, and assembling the supporting documents.
That way you are not handed off and left to start over. You keep the people who know your file, and the representation sits with a professional licensed to provide it. Tax resolution and IRS audit help describe how that works, and our IRS letter guides cover the common notices.
Frequently asked questions
Is a tax preparer the same as a CPA?
No. A CPA is licensed by a state board after meeting education, exam and experience requirements, and can perform attest work such as audited financial statements. A tax preparer prepares returns and must hold a PTIN. Many preparers, including LaToya, also complete the IRS Annual Filing Season Program each year. For most returns, either can prepare them well.
What does an AFSP Record of Completion mean?
It means the preparer completed the IRS Annual Filing Season Program for that year: the required continuing education including a tax law refresher course with a test, consent to Circular 230 practice obligations, and a current PTIN. It is voluntary, it is renewed annually, and holders are listed in the IRS public directory of preparers. It is not a CPA license.
Do I need a CPA for my small business taxes?
Usually not for the return itself. Small business returns, Schedule C, S corporation and partnership returns are routinely prepared by tax preparers. You need a CPA when someone requires audited or reviewed financial statements, or when the business needs representation in an IRS or SCDOR examination or collection matter. We will tell you if your situation reaches that point.
Who can represent me if I get audited?
Full representation in audits, collections and appeals is provided by licensed professionals such as CPAs and attorneys. At Elite Pro-Tax, a matter that needs representation goes to the independent licensed CPA we work with, while our office coordinates the records, the returns and the supporting documents so the work starts from a complete file.
Not the question you had? The full tax FAQ covers more ground, and our client reviews say what the work is actually like.
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