CPA Services FAQ
What are the differences in relative skills in different Tax Professionals?
Skill Differences – Tax Professionals
Skill Differences – Tax Professionals
What are the differences in types of accounting and tax advisors?
Accounting – Tax Advisors
Types of Accounting and Tax Advisors
- The CPA is the CLEAR HANDS DOWN WINNER AGAINST EVERY OTHER TYPE OR CHOICE OF ADVISOR. The Clown(Tech) skills win EVERY TIME AGAINST ANY ADVISOR OTHER THAN A CPA. The Clown(Tech) is the winner against Enrolled Agents and Xero Advisors. The Xero Champion status is of no consequence other than against a Xero Advisor.
- The only type of advisor that is a “professional” among the types listed above are Certified Public Accountants [“CPA’s]. The background on this is discussed detail under “Yiddish Wisdom“.
- CPA’s are required to have a graduate degree and meet an experience requirement. Enrolled Agents have neither requirement. We have offered a proposal that would close that loophole that you can read about here.
- NAEA’s website includes the following quotes
- “Only enrolled agents are required to demonstrate to the IRS their competence in all areas of taxation, representation, and ethics before they are given unlimited representation rights before IRS. Unlike attorneys and CPAs, who are state licensed and who may or may not choose to specialize in taxes, all enrolled agents specialize in taxation.” Source: http://taxexperts.naea.org/content/what-is-an-enrolled-agent.html
- “Enrolled agents (EAs) are America’s Tax Experts®. EAs are the only federally licensed tax preparers who also have unlimited rights to represent taxpayers before the IRS.”Source: http://taxexperts.naea.org/
This bald-faced lie comes to us courtesy of the California Society of Enrolled Agents
- “Enrolled Agents (EAs) are trained in a wide variety of common and unusual tax situations. With the tax laws changing yearly, it’s more critical than ever to have a qualified tax specialist on your side when preparing your tax and financial strategy. The Enrolled Agent license is the highest credential the IRS issues. Be confident about your tax return – use an Enrolled Agent.” Source http://www.findanea.org/
Perhaps it would help to be truthful and state that the EA is the ONLY credential that the IRS issues. CPA and Attorney licensing is the purview of the states. The US Treasury, Internal Revenue Service’s [“IRS”] Office of Professional Responsibility[“OPR”] is responsible for the discipline of EA’s, CPA’s and attorneys that represent taxpayers under Circular 230.
Rather than restate much of what I have written on topic before, you can read Considerations In Selecting A US Tax Advisor, What Does Your Financial Advisor Look Like, a post with numerous links to other material in A Proposal To Ban the Use of “Meaningless Titles”, “I Found My Niche Clown Accounting“
This one was directed at the non-professional accountants in the Xero Ecosystem
Is The IRS Required To Accept Tax Payments in Cash?
IRS Required Accept Cash Tax Payments
The short answer is YES…the IRS is required to accept cash for tax payments. However, they are not required to accept them in all locations at all times. As such, you may need to contact the local IRS office and set up an appointment to make a payment in cash, particularly if the payment is substantial.
[We intend to add a list of contact information for IRS Offices in California.
The following is the text of an IRC Chief Counsel Memorandum on the subject:
Acceptance of Cash Payments at Taxpayer Assistance Centers
Are the Taxpayer Assistance C~nters (TACs) required to accept cash from taxpayers
for the payment of taxes?
The TACs are required to accept cash from taxpayers for the payment of taxes pursuant
to 31 U.S.C. § 5103. However, the IRS Is not legally prohibited from limiting the
acceptance of cash payments to TACs where safeguards cannot be implemented to
protect the interests of the I RS and taxpayers.
The United States Code provides that “United States coins and currency (including
Federal reserve notes and circulating notes of Federal reserve banks and national
banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or
silver coins are not legal tender for debts.” 31 U.S.C. § 5103. Thus, it seems clear that
the IRS is required to accept U.S. coins and currency for the payment of taxes. The
Department of Treasury’s website also includes a frequently asked question regarding
the requirement of accepting cash as legal tender for a debt. The response clarifies that
a private party (I.e., a non-government entity) is not required to accept cash payments.
While the U.S. government is required to accept cash in payment of taxes or other
debts, there is no statute or regulation requiring the United States to accept cash
payments at each and every location that accepts payments. The Service has
approximately 400 Taxpayer Assistance Centers (TACs). Taxpayers are able to make
payments at each of the TACs. As a security measure, the Service has implemented
specific procedures to be followed when a taxpayer makes cash payment at one of the
T ACs. This procedure intentionally involves more than one employee. First, a taxpayer
desiring to make a cash payment must provide exact change. Second, this taxpayer
must be provided a receipt for the payment. The taxpayer is given Part 2 of the Form
809 as a receipt for the cash payment See IRM 184.108.40.206.2.1. The employee who is
authorized to receive the payment and to issue the Form 809 receipt is not authorized to
make any adjustments to the taxpayer’s account on IDRS. See IRM 220.127.116.11.2(4). This
limitation precludes an employee from accepting a cash payment, adjusting the
taxpayer’s account to reflect the payment, and then converting the cash payment to the
employee’s personal use. The mandatory separation of duties protects the employee,
taxpayers, and the IRS.
In those locations where there are a very limited number of employees, is not feasible to
accept cash payments. Minimal staffing at a location generally necessitates having
employees with more than limited authorities. Having an employee with limited IDRS
access in a TAC of this size severely restricts the services that can be provided to other
taxpayers at that location. Therefore, it seems reasonable that the Service accepts cash
payments only at the TACs with greater staffing. The IRM incorporates this reasoning
and authorizes the Director, Field Assistance or the Area Director to grant a deviation
from accepting cash payments to T ACs with fewer than three employees.
The exception provided for cash payments at small TACs is reasonable, but care needs
to be taken to ensure that the exception does not become the rule. That is, the Service
cannot eliminate its obligation to accept cash for the payment of taxes by staffing the
T ACs so that no centers have sufficient personnel to accept cash payments.
If you have additional questions or further concerns, please contact me or Joanne
Minsky of my staff at 202-622-5777.
Why is aBIZinaBOX a good choice to advise a California cannabis business?
We are a good choice because:
We are California Licensed Firm – Individual CPA and you can verify it here or at CPAVerify.org
- We are an AICPA Private Companies Practice Section [“PCPS“] member firm. The AICPA’s Private Companies Practice Section (PCPS) supports CPA firms in the everyday intricacies of running a practice.
PCPS partners with firms of all sizes, creating targeted and customizable practice management resources, networking opportunities and is a strong, collective voice within the CPA profession. We understand how difficult it is to keep up with the ever-changing business landscape while also plotting your firm’s direction. PCPS strives to fill the gaps where your firm might not have internal resources. According to the PCPS CPA Top issues survey, the top five issues for medium-size firms include bringing in new clients, finding qualified staff (at all levels), succession planning, retaining qualified staff (at all levels), retaining current clients.
- We are a member of the California Society of Certified Public Accountants [“CALCPA“]. The CALCPA is the largest statewide professional association of certified public accountants in the United States with more than 42,000 members. The following strategic priorities support CalCPA’s
vision and mission as well as the organization’s long-term success.
- Advocate for issues that protect the profession.
- Enhance and promote the visibility of CalCPA and the profession.
- Cultivate the pipeline of future financial professionals and CalCPA members.
- Provide value and engagement at every career stage.
- We are licensed by the California Board of Accountancy [“CBA”] both at the firm and individual levels.
Our view is that if your cannabis business is located in California, your advisors should be licensed in California. When a CPA has a California license, it means that they have been subjected to CBA’s licensing review and vetting procedures, the individual has passed a rigorous California CPA Ethics exam, and it demonstrates a commitment to being in business in California…just like the businesses that we seek to represent day in and day out. If you are considering a different choice of advisor, take the time to verify and confirm that they have made the same commitment to professional practice in California.