Tax Preparation - CPA Or H&R Block?

U.S. tax law is notoriously complicated both to laymenstandards and follow a strict code of ethics to get
and those who work in finance but may not specializelicensed by the American Institute of Certified Public
in tax preparation. Because of this, it's often worth it toAccountants. CPAs have extensive knowledge and
enlist the help of a tax specialist who has an extensiveyears of experience with tax law, including state tax
breadth of knowledge regarding the tax code andlaw (for example, a Seattle- or Bellevue-based CPA is
experience handling different taxation situations.required to pass examinations pertinent to Washington
There are few basic options which tax filers in the U.S.state tax codes).
choose when preparing their yearly tax returns: filingOn the other hand, someone who represents a
taxes on their own electronically with the help of taxbusiness like H&R Block has only been trained for a
preparation software, hiring a licensed professionalfew weeks on how to process different kinds of tax
such as a certified public accountant (CPA), or walkinginformation. They offer their employees short, intense
into a storefront tax preparation business. All threetraining courses to orient them on the process for filing
prepare taxes for a fee in return for experttaxes for general purposes. While most of these tax
consultation. And, of course, the higher the expertisepreparation firms tend to hire people with financial
needed, the higher the fees.backgrounds, you'll very rarely find someone here who
In this case, purchasing tax preparation software isis as experienced and knowledgeable as a CPA.
often the most affordable route. But in the end, it'sBottom-line: with a CPA, you pay more but you'll get
comparable to filing your own taxes. Because of this,more. But if you have a complex tax situation, a CPA
many filers feel more confident having their taxesmay be able to pay for him or herself by finding you
prepared by a real live person (other than themselves).savings that an H&R Block employee might be
To this end, many filers wonder whether it is better tounaware of. But on the flip side, if you have a very
get a CPA or hire a service like H&R Block. Thestraightforward tax return, a CPA may be overkill.
answer is (as is typical with financial matters): "ItYour best bet is to describe your situation over the
depends."phone to both a CPA and a storefront tax preparation
A CPA is someone who has had a rigorous educationbusiness and get a rough estimate before you decide.
and has been trained to meet high professional