By Bella Avila | NerdWallet
Hundreds of individuals search “Black CPA near me” every month. But in response to the most recent knowledge from the Association of International Certified Professional Accountants, solely 2% of CPAs within the U.S. are Black.
This could make it laborious for individuals to discover a Black CPA to work with, however the additional effort will be value it to discover a tax professional you’re comfy with, says Angie Toney, proprietor and CEO of Oasis Tax Advisory Services.
“Whether perceived or real, you may feel judged by non-Black CPAs,” mentioned Toney. “It’s about trust, approachability and also about supporting our own professionals.”
We talked to some Black tax execs about high questions on taxpayers’ minds this submitting season, together with when it is sensible to rent a tax preparer and tips on how to maximize your credit and deductions.
Responses have been edited for size and readability. Learn extra about every monetary professional beneath following the questions.
What are the highest stuff you need taxpayers to pay attention to this season?
Nayo Carter-Gray
Nayo Carter-Gray, CEO of 1st Step Accounting and founding father of Taking Your Firm Virtual: “The main thing I always want taxpayers to be aware of is who is preparing their tax returns. There is a thing called a ‘ghost preparer,’ and these preparers prey on taxpayers who are unaware that in order to get paid to prepare a tax return, you must have a preparer tax identification number (PTIN). So I encourage you to look up your tax professional on the IRS’ website to verify that they are, in fact, registered to do so. This will ensure that you are working with a tax professional that is held to high ethical standards.”
Joel Lee
Joel Lee, proprietor of Thorough Financial Services: “E-filing your tax return is faster and more secure than paper filing. Additionally, when you e-file using IRS-approved software, it often includes step-by-step guidance to ensure accuracy. You can also utilize the IRS Free File program if you meet the income requirements for free tax preparation and e-filing.”
When does it make sense to make use of tax software program vs. a CPA or an accountant?
Calvin Harris
Calvin Harris, CEO of The New York State Society of CPAs: “This is largely dependent on quite a few factors. But, when in doubt (even a tiny bit of doubt), ask a professional for help — you just don’t want to end up on the wrong side of the tracks when dealing with the IRS. Tax software is great in many ways; however, it can be very misleading and lead you to unexpected errors if someone does not know what they are really doing.”
Angie Toney
Angie Toney: “I’m a proponent for self-preparation when people are younger and simply beginning out with a easy W-2. It will give some primary understanding of how taxes are ready, and taxpayers ought to really learn the return after it’s accomplished. They also needs to obtain and retailer it securely in case they want entry going ahead. The software program is just not for use as a everlasting storage for tax returns. I was a tax knowledgeable advising for Intuit TurboTax and spoke with many shoppers who misplaced their ID and entry to the software program, and due to this fact prior-year returns.
“You know you need a professional to handle your taxes when your tax return gets more complex with sophisticated investments, rental property and especially reporting the results of a small business. Many taxpayers are overpaying taxes by not taking rightful deductions and causing unnecessary penalties by claiming credits for which they are ineligible.”
No one likes massive shock payments at tax time. What are some methods to pay much less and maximize credit and deductions?
Julian Davis
Julian Davis, director at Homrich Berg: “Many actions that may scale back tax payments need to be completed through the precise tax yr, akin to charitable giving, paying your mortgage, shopping for an electrical car, and so forth. However, there are some things you are able to do, even after the yr has ended, however earlier than you file your tax return, to assist save on taxes. Those embrace making IRA contributions (relying in your revenue stage) and 529 faculty financial savings contributions, relying on the state wherein you reside.
“Also, make sure that you are aware of the credits that may benefit you when filing your taxes, such as credits for children, for education and for certain environmentally friendly purchases, just to name a few.”
Nayo Carter-Gray: “The best way to minimize surprise bills at tax time is to prepare before the year is over. Generally, these big tax bills arise because of a major bump in income or major life changes (like marriage). But if you talk to a tax professional before the year is over (August to October is a good time), they can help you plan. If you have a profitable business, bookkeeping is going to be your first line of defense. If you sell property, keeping track of all of the expenses will help immensely. If you get married, you could move into a new tax bracket, so seeking tax planning services will help you understand how to minimize any tax implications.”
What dangerous tax recommendation do you persistently see given?
Laura Tshilumba
Laura Tshilumba, International Practice Leader at HLB Gross Collins: “Bad recommendation that I see persistently given is that Americans dwelling and/or working abroad don’t must file U.S. tax returns. This couldn’t be farther from the reality. I can not let you know the various tax horror tales I’ve handled due to this recommendation, and taxpayers needed to pay some huge cash to each a tax advisor and a tax lawyer to repair their tax mess and assist deliver them into compliance with their U.S. tax filings.
“There are cases where an American expat may not need to file a U.S. tax return, but don’t take that advice at face value. Even for taxpayers who are technically exempt from filing, it can still be beneficial to file a tax return for many reasons. I always tell people to consult with a qualified tax professional who is well-versed in the field of international taxation to understand their filing obligations.”
Nayo Carter-Gray: “The worst advice I have seen floating around on social media and through conversations is for small-business owners to elect to be taxed as an S corporation. This is blanket advice and unfortunately does not cover all small businesses the same. Most of them don’t understand that the owners of the S corporation have to be paid a reasonable salary, and when a business is new and/or just starting out, they don’t have the cash on hand to afford the salary or the payroll taxes that come along with it.”
Calvin Harris: “I see far too many people taken advantage of by others who claim they can guarantee you a refund. There are various legitimate ways to maximize a potential refund, but no tax professional will guarantee a result without understanding your situation. If it sounds too good to be true, it probably is.”
More concerning the tax execs
Angie Toney: Toney creates methods for taxpayers who must get the IRS off their backs and out of their pockets. She additionally created The Executive Touch, a platform constructed to supply steady training and collaboration for different tax execs.
Nayo Carter-Gray: “Making accounting a little less taxing” is Carter-Gray’s purpose as CEO and founding father of 1st Step Accounting. Nayo is an enrolled agent, sits on the Maryland Board of Individual Tax Preparers and was named one of many Top 50 Women in Accounting two years in a row.
Joel Lee: Lee is a licensed public accountant, tax advisor, and proprietor of Thorough Financial Services. Thorough Financial Services is a Maryland-based accounting agency specializing in empowering mum or dad entrepreneurs with precision accounting and revolutionary tax methods.
Calvin Harris: Harris is the CEO of the New York State Society of CPAs. He has over 30 years of executive-level expertise in working with advanced organizations. He has devoted a lot of his profession to selling, enhancing and strengthening the accounting career.
Julian Davis: Davis is a director at Homrich Berg, a licensed monetary planner, a licensed public accountant, and a member of the Association of African-American Financial Advisors and the Georgia Society of Certified Public Accountants. Davis participates in volunteer occasions all through Atlanta, together with pro-bono monetary planning occasions.
Laura Tshilumba: Tshilumba is the chief of the worldwide tax follow at HLB Gross Collins. She takes the effort out of submitting U.S. tax returns for American expatriates. She additionally helps American expats and twin residents repair their past-due U.S. tax returns with the least quantity of ache.
The article 6 Black Tax Pros to Follow in 2024 initially appeared on NerdWallet.
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