Choosing the Right Tax Preparer: Are all Tax Preparers the Same?

November 3, 2025

Tax season is like finals week for adults—stressful, confusing, and full of paperwork. But don’t worry, you don’t have to go at it alone. There are several types of tax professionals out there, each with different qualifications and specialties. Whether your tax situation is simple or complex, understanding who does what can help you choose the right person for the job. 

Tax season is like finals week for adults—stressful, confusing, and full of paperwork. But don’t worry, you don’t have to go at it alone. There are several types of tax professionals out there, each with different qualifications and specialties. Whether your tax situation is simple or complex, understanding who does what can help you choose the right person for the job. 


Enrolled Agents: The Tax Law Nerds 

Enrolled Agents (EAs) are licensed by the IRS and specialize in tax matters. They’ve passed a tough 3-part exam and are required to stay up-to-date with continuing education. EAs can represent you in front of the IRS for audits, appeals, and collections. If you own a business or have a complicated return, an EA is a great choice for expert guidance and full representation. 


Certified Public Accountants: The Mathletes of Finance 

Certified Public Accountants (CPAs) are licensed by state boards and trained in accounting, finance, and tax. CPAs also have unlimited rights to represent you before the IRS, making them a solid option for complex financial situations. 


Tax Attorneys: Legal Eagles 

Tax attorneys are lawyers who specialize in tax law. They’re licensed to practice by state bar associations and can represent you in legal matters involving the IRS. If your tax issues involve legal disputes, estate planning, or business structuring, a tax attorney can provide the legal expertise you need.  Also of note is that a United States Tax Court Practitioner (USTCP) is the only non-attorney who can represent taxpayers in US tax court.   


Representation before the IRS: Why it matters 

Per the IRS, “Attorneys, CPAs, and enrolled agents continue to be the only tax professionals with unlimited representation rights, meaning they can represent their clients on any matters including audits, payment/collection issues, and appeals. Attorneys, CPAs, and enrolled agents continue to be the only tax professionals with unlimited representation rights, meaning they can represent their clients on any matters including audits, payment/collection issues, and appeals.” (Annual Filing Season Program | Internal Revenue Service) 


AFSP Participants: Trained and Reliable 

The IRS offers the Annual Filing Season Program (AFSP) to encourage education among non-credentialed tax preparers. Those who complete the program receive a certificate and limited representation of rights. They’re a good fit for straightforward returns and offer a level of verified training that can give you peace of mind. 


PTIN Holders: Entry-Level Preparers 

Anyone who prepares taxes for pay must have a Preparer Tax Identification Number (PTIN). However, not all PTIN holders have formal training or credentials. They can prepare your return, but they can’t represent you before the IRS. If your return is super simple and you just want someone to double-check your math, this might be enough—but ask questions to make sure they know their stuff. And if they want you to pay them but they do not have PTIN, DO NOT USE THEM! Run Away! 


Where is KAC Consulting, Inc. in this lineup? 

We have two Enrolled Agents on staff! Cindy has been an enrolled agent for more than 18 years and has been in the field for more than 25, so she has the experience and ongoing training to help you. Kaitlyn has been around taxes for 10 years and was just credentialed as an EA in 2025. We also have a team member who is an AFSP participant. 


Rest assured, we know taxes, and we are constantly learning as tax law changes to make sure our clients stay compliant and maximize their tax savings. We also provide bookkeeping and advising services because our goal is to not just see you once a year at tax time, but to work with you and your business throughout the year to keep your books in tip-top shape and hopefully help you do some tax planning.  

By doing so, we hope to help make tax season less stressful while helping you grow your business. Contact us today to schedule a consultation to see how these tax nerds can be of help! 

What to Watch Out For When Choosing a Tax Preparer

October 27, 2025
Picking someone to do your taxes isn’t just about saving time—it’s about making sure everything is done right, so you can avoid costly mistakes or even fraud, and maybe even score some extra savings! Just because someone claims to be a tax pro (even if they have a fancy office with a potted plant) doesn’t mean they’re actually qualified. So, before you hand over your personal details or hit “send” on your return, know what red flags to look for

Tax Planning for Restaurants: Don’t Leave Money on the Table – How the FICA Tip Credit and Other Strategies Save You Thousands

By Cynthia Montoya, EA • October 23, 2025
In this guide, we’ll break down what every restaurant owner needs to know about two key tax credits you may be missing. Read on to make sure you’re not leaving money on the table.

IRS to End Paper Refund Checks—Here’s What You Should Know

October 16, 2025
You probably have been receiving your refund by direct deposit; but just in case you have not, please read on!

Overcoming Common QuickBooks and Xero Mistakes

By The Staff and KAC Consulting, Inc. • October 15, 2025
You finally clicked the box to reconcile your bank account in your bookkeeping software when the dreaded alert shows up: “The ending balance does not match.” What do you do? Navigating accounting software, such as QuickBooks and Xero, can be challenging, especially for small business owners who juggle multiple responsibilities. Here are some of the most common mistakes and practical steps you can take to avoid them.

Recent Tax Court Case: Business Losses Denied—What Business Owners Can Learn

By Cynthia Montoya, EA • October 1, 2025
Background Wesley and Janet Young, an Oklahoma couple, owned and operated Pecandarosa Ranch, which combined pecan farming, raising livestock, horse activities, and events. Despite their busy efforts and substantial investment—including building an arena and maintaining a large property—they reported significant financial losses from the ranch for many years. What Happened The Youngs claimed the ranch was a real business, deducting all its losses from their other income on their tax returns. However, the IRS challenged their tax filings, arguing that the ranch wasn’t genuinely run to make a profit. The Tax Court agreed with the IRS and not only denied the loss deductions but also imposed penalties. Key Lessons for Small Business Owners: Show a Real Profit Motive: The court looks at whether your activity is genuinely intended to make money. Things like detailed business plans, budgets, and regular reviews of your finances are strong evidence of a real business motive. Keep Businesslike Records: The Youngs used personal accounts and didn’t keep thorough up-to-date records for the ranch. For your business, use a separate bank account, maintain organized books (using tools like QuickBooks), and track your income and expenses carefully. Separate Fun from Business: If your business involves hobbies or things you enjoy (like sport or farming), be extra diligent. Personal enjoyment is fine, but make sure your operations, spending, and decisions focus on making money—not just having fun. Sustained Losses Are a Red Flag: Reporting losses year after year—especially if you also have outside income—can make the IRS skeptical. Occasional tough years are understandable, but without a clear path to profitability, you may not be able to deduct ongoing losses. Professional Advice is Key, but Not a Cure-All: Relying solely on tax preparers for filing returns doesn’t protect you if your business isn’t run for profit. Get professional advice on how to structure and operate your business before there’s a problem. Bottom Line Simply putting time and money into a business isn’t enough. To protect your deductions, run the operation in a genuinely businesslike way with a clear profit goal, strong records, and regular review of results. Do you need help to make sure you are compliant with IRS regulations and maximizing allowable tax savings? Please contact us to see how KAC Consulting, Inc. can assist! Summary based on Young v. Commissioner, U.S. Tax Court (2025)

New Catch-Up Contribution Rules: Why Payroll Setup Matters

By Cynthia Montoya, EA • September 30, 2025
If you or your employees are over age 50, you may be making “catch-up” contributions to boost retirement savings. But a key change is coming: for certain employees, those extra contributions will soon be Roth only—and that brings new payroll and tax planning considerations.

Proven Cash Flow Strategies Every Texas Restaurant Owner Needs to Know

By Kaitlyn Thompson, EA • September 25, 2025
Many restaurant owners get into business because they love food, not finances. Without good finances, however, running your dream business becomes stressful and painful.

Case Study: How One Texas Eatery Turned a 1% Loss Into a 4% Gain—In Just Four Months

By Cynthia Montoya, EA • September 25, 2025
For many years a family-owned restaurant in Texas had been a cherished destination for both locals and travelers. But after the pandemic, everything changed. Food prices soared, labor costs rose, and fewer customers came through the door. Month after month, the owners watched their net margin slip into the red, losing 1% on every dollar. With each shift, uncertainty grew: not just for the owners, but for everyone on the team. In the restaurant world, when business suffers, everyone feels it, from the kitchen to the dining room. Fewer guests can mean quieter nights, fewer shifts, and smaller tips. But when the restaurant thrives, so do the people who make every meal and every guest experience memorable. That’s when the owners turned to our KAC advisory team for a new way forward

The Most Common Bookkeeping Mistakes Restaurants Make (And How to Avoid Them)

By The KAC Consulting, Inc. Staff • August 21, 2025
What you don’t know about your books can hurt you—badly.

The Hidden Dangers of Using Financial Software

By The KAC Consulting, Inc. Staff • August 21, 2025
Accounting tools like QuickBooks and Xero can be incredibly helpful, streamlining tasks such as transaction imports, invoicing, and reconciliation. But blindly relying on them is a risky move. Software can generate duplicate entries, misinterpret transaction data, or misclassify items, leading to inaccurate financials if not regularly reviewed.