SRS: Get ready for tax season with SRS’s Tax Preparer handout

The SRS Tax Preparer handout has been updated for the coming tax preparation season. The list gives contact information for four Enrolled Agents (EA) and two Certified Public Accountants (CPA).

What is the difference between an EA and a CPA?

An Enrolled Agent is a person who is licensed to represent taxpayers before the IRS after passing three proficiency exams in taxation administered by the IRS. EAs are not required to have a college degree or any other specific business-related education. To maintain their license, they must take 72 hours of continuing education every three years.

A Certified Public Accountant is licensed by individual states after passing four national exams administered by the American Institute of CPAs. In California five years of college units are required to be able to take the examinations. To maintain their license, they must take 80 hours of continuing education every two years.

Both EAs and CPAs are trained to do a professional job with tax return preparation. In general, many people believe EAs are best for routine tax preparation and miscellaneous tax filings. CPAs are best for complex advanced tax planning and preparation, especially if the planning and compliance involves related business or trust entities. Choosing one or the other depends on your personal situation.

If you would like the Tax Preparer handout, stop by the SRS office. Or you may call the SRS office at 408-239-5253 and have it emailed to you. 

SRS also sponsors an AARP Volunteer Tax-Aide Program site. Free tax preparation will be offered by appointment at Foothill Center on Thursday mornings during tax season. Volunteers are Villagers trained and tested according to IRS standards. The coordinator is Alan Waltho, 408-238-3435. The appointment process will be announced in January.

Remember, this list is offered solely as a convenience for you. SRS makes no recommendation regarding any of these resources.

SRS Reminder: Don’t forget your IRA RMD

Are you the age who must take a required minimum distribution (RMD) from your traditional IRA? Don’t forget, this must be done by December 31.

If you wish, you may send part or all of your RMD directly to a charity rather than to yourself. This avoids income tax on the distribution. 

Your RMD for 2024 is calculated based on the fair market value of your IRA account on December 31, 2023 and your age on your birthday in 2024. Your IRA monthly or quarterly statement should show the amount of required distribution and the amount you have taken to date.

Note: The Senior Resource Services (SRS) office hours for drop-in assistance are Monday, Wednesday, and Friday from 10 a.m. to noon. The SRS office is in the Cribari Center across from the Post Office. You may also leave a message at 408-239-5253. The purpose of SRS is to provide education and general business and financial information. All assistance is free and confidential. You should ask your professional advisor about your individual situation.