This tax season, consider using a CPA firm, knowledgeable in trader tax. A tax storefront doesn’t know trader tax, and other firms on the trader tax circuit may not always be CPAs and may act contrary to the professional and ethical standards applicable to CPAs. Commercial providers promising tax relief on TV may not always deliver what they promise. Don’t fall for deceptive marketing statements and listen to slanderous statements about good providers.
CPAs are bound by a code of ethics. They can’t make improper marketing statements; they must disclose commissions and other relationships to their clients. There are others on the trader tax circuit who are not CPA firms and who make outlandish, untrue statements. They pay universities and schools commissions for services from their clients without disclosing it. If you’re a trader, you need the right advice from a trusted provider so you can be sure you’re not going to leave any money on the table this tax season or get into trouble with the IRS.
If you find a CPA who knows trader tax, make sure he or she is dedicated to trader tax services rather than trading for his or her own account and preparing tax returns as a side business. It’s a disadvantage to engage a CPA sole practitioner more focused on day trading than your tax needs. If you have trouble reaching these CPAs during trading market hours, you might be dealing with a part-time CPA, so think twice about entrusting your taxes with this person. Just because they understand how to day trade doesn’t necessarily mean they’re a better trader tax preparer — it just means they have more distractions.
Another important advantage of using an established, trader tax CPA firm like ours is that all of our tax returns are reviewed by another CPA to give you the best possible advantages. A CPA sole practitioner’s work is rarely reviewed by another CPA, so you’re dependent on their expertise alone.
You deserve better customer service and more accurate tax preparation and planning results than you can get from either of the scenarios above.
Dangers of non-CPA firms
For example, some non-CPA firms promise education deductions 18 months before the start of business — which is improper. They promise business deductions when you don’t have trader tax status. They say you can’t use trader tax status after the fact as an individual — that’s wrong. Their non-CPA salesmen make wild statements about the law and what they can do for you. They might have one or more CPAs on their roster, but the owners of the firm and salesmen are not CPAs and are not bound by a code of ethics. You’re comparing apples to oranges when you compare those types of providers to a good CPA firm qualified in trader tax. One firm respects a CPA code of ethics, which is a good thing. And the others can make wild statements, so you need to choose accordingly.
Again, these storefront providers don’t know trader tax, and rarely work with a CPA. Software can be good, but it doesn’t have guidance on trader tax — software has trouble with forex, futures, short sales, and more. We do offer tax guides for people who prefer self-preparation, and our trader tax prep service we believe is the best around. We have competent, highly trained CPAs on our roster and ownership, and we’ve been leading the industry in trader tax content, knowledge and track record. We don’t engage salesmen, and we don’t sell you stuff you don’t need. When we say we have had very few trader tax exams, you can count on that statement. When another firm says it has had zero exams and lies about our record, don’t believe it. Choose right, because it’s not just tax savings at stake — there could be tax trouble ahead. You don’t want to go into an exam with incorrect law applied and face potentially large problems with the IRS. That’s the value of a good CPA firm. If you go to a doctor, you go to one that has a license. If you need a lawyer, you seek one with the proper license. If you need an accountant for your important taxes, we think you should find one with a valued CPA license. Here’s more info about the AICPA Code of Professional Conduct.
When comparing to the storefront, also consider that many local CPA firms are experts in other areas; the great majority aren’t familiar with online traders, the various elections, nuances and strategies that we focus on as our main area of expertise. We’re a virtual firm. No matter where you are in the country, you can easily work with us. Why not choose our service over a local CPA firm that doesn’t have the knowledge and experience you need for trader tax?
Think smart this tax season.
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