by Jennifer Bonner

Created on: October 10, 2009

You have taken the leap of faith and are looking for someone else to prepare your annual income tax return. There are so many questions that you want answered. How do I know the tax preparer knows the tax code? How much is it going to cost me? What happens if the tax preparer doesn't complete the return properly? What if I don't like the tax preparer?

All of these questions (and more) are valid. The tax preparer you choose will become intimately knowledgeable of your financial and personal information, including marital status, children's names and of course everyone's social security numbers. Taking the selection of a tax preparer is a very personal and sensitive subject and you should carefully and patiently wind your way through the plethora of tax preparers in your area.

The first question I would try to answer is: What type of tax preparer do I want? Do I want someone that is licensed in the state I live in? A CPA? An enrolled agent? Or do I even care if they have a license? There are only two states in America that require tax preparer's to have a license, Oregon and California. If you do not live in either of these states, the next license would be the enrolled agent.

Enrolled agents are licensed through the Department of the Treasury and are federally-authorized tax practitioners. An enrolled agent can earn their license one of two ways:

1. Passed a comprehensive examination that covers all aspects of the tax code

2. Worked at the IRS for 5 years in a position that regularly interpreted and applied the tax code and its regulations.

Enrolled agents are required to have 72 hours of continuing education every three years, which should keep the enrolled agent up to date on new tax laws and regulations.

Each state has their own regulations for becoming a Certified Public Accountant (CPA) however there are similarities between the states. Most states require the passing of the Uniform Certified Public Accountant exam. The differences usually come with the experience needed to receive a license and other administrative requirements. As with the Enrolled Agent, CPA's are required to have a certain number of continuing education every three years. In Washington, where I am located, I am required to have 120 hours of continuing education every three years. Washington also requires that the continuing education fall into different categories, such as technology, accounting, auditing or ethics.

After deciding which type of preparer makes you feel the most

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