Taxpayers no longer have to fear the IRS knocking on their doors. IRS is ending practice.

People no longer have to fear IRS agents will drop by unannounced because the agency said Monday it’s ending that practice, effective immediately, to help ensure the safety of its employees and taxpayers.

The change reverses a decades-long practice by IRS Revenue Officers, the unarmed agency employees whose duties include visiting households and businesses to help taxpayers resolve their account balances by collecting unpaid taxes and unfiled tax returns. Instead, people will receive mailed letters to schedule meetings, except in a few rare circumstances.

“These visits created extra anxiety for taxpayers already wary of potential scam artists,” IRS Commissioner Danny Werfel said in a statement. “At the same time, the uncertainty around what IRS employees faced when visiting these homes created stress for them as well. This is the right thing to do and the right time to end it.”

No. With extra money from the Inflation Reduction Act, the IRS will have more staff to do compliance work and chase high-income earners avoiding taxes, Werfel said.

“Improved analytics will also help IRS compliance efforts focus on those with the most serious tax issues,” Werfel said. “We have the tools they need to successfully collect revenue without adding stress with unannounced visits. The only losers with this change in policy are scammers posing as the IRS.”

The move will also protect IRS employees, who have felt more under attack in accurate years. “The safety of IRS employees is of paramount importance and this decision will help protect those whose jobs have only grown more dangerous in accurate years because of false, inflammatory rhetoric about the agency and its workforce,” said Tony Reardon, National President of the National Treasury Employees Union.

Ethan Miller checks the IRS website while working on his taxes at home in Silver Spring, Md., Friday, Jan., 21, 2022. Tax filing season starts Monday and people can expect the task to be more cumbersome than usual this year thanks to an overloaded and understaffed IRS workforce and new complications from pandemic-related programs.

IRS scams: You may soon get an IRS letter promising unclaimed tax refunds. It's a scam.

If IRS agents need to meet with you, you’ll receive in the mail an appointment letter, known as a 725-B, and schedule a follow-up meeting and allow taxpayers to feel more prepared with necessary documents in hand when it is time to meet.

This will help taxpayers resolve issues more quickly and eliminate the burden of multiple future meetings, the agency said.

Only on the rare occasion will IRS agents have to come unannounced. For example, when there's a summons, subpoenas or sensitive enforcement activities involving the seizure of assets, especially those at risk of being placed beyond the reach of the government. To put this in perspective, the IRS said these types of situations typically arise less than a few hundred times each year – a small fraction compared to the tens of thousands of unannounced visits that typically occurred annually under the old policy, it said.

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to their free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.  

This article originally appeared on USA TODAY: IRS ends unannounced visits to keep taxpayers safe and scammers away

How to Find a CPA Near You

There are many tax pros out there ready to help with an annual return, tax planning and more. But it can be hard to know whom to trust with your most sensitive information.

Certified public accountants (CPAs) are a common type of credentialed accounting professional whom you might encounter in your search for tax prep help. Here’s more on what a CPA does and how to find one in your area.

How can a CPA help you with taxes?

A CPA who prepares and files income taxes typically possesses a deep knowledge and understanding of tax law and should be aware of any critical tax changes affecting your situation and how to navigate them.

They’ll work with you to file your federal and state tax returns, make sure you are taking advantage of any tax credits and deductions you’re eligible for, and sign off on your return once complete. Some CPAs also provide tax-planning services to help you optimize your finances and take advantage of tax strategies year-round.

CPAs are granted what the IRS calls “unlimited representation rights[0]

How to find a CPA near you

1. Narrow your search

Typing “CPA near me” into Google can take all of two seconds, but contending with the quality of information you see can be overwhelming. Here are a few tips to narrow down your search.

Check the IRS directory: The IRS maintains a robust database that taxpayers can use to find tax preparers near them, including CPAs. You can filter by location, last name and what kind of pro you want.

Review online directories: Professional tax and accounting associations are great starting points for CPA research. Some organizations may not have publicly available directories, requiring more email and outreach work on your part. Still, it could be worth the effort, especially if you want to find a pro whose specific experiences, background and knowledge meet your needs.

Some notable tax and accounting associations include:

Many state-run CPA societies also have directories. The AICPA compiled a list for easy browsing.

Get referrals: It can also be beneficial to ask around when it comes to looking for a new CPA. Colleagues or friends might be able to provide you with guidance and firsthand reviews of people they’ve worked with.

Ask your financial institution for a recommendation: Don’t forget to leverage any existing financial networks you have when searching for a CPA. Your bank, financial advisor or even your workplace might have resources in place to assist you in your search.

2. Verify their credentials

Digging into someone’s records might seem like extra work, but doing so can help you uncover potential red flags, such as a lapsed license or any disciplinary actions taken against them. It can also protect you from working with what the IRS calls “ghost preparers” — unlicensed scammers who claim to be CPAs.

Here are a few ways to ensure your CPA’s info is on the up and up.

Review their standing and license: Having a PTIN is one matter. You’ll also want to check that the CPA has a clean record and is licensed to practice in your state. The National Association of State Boards of Accountancy’s CPA Verify tool is just one resource to help you get a quick overview of a CPA’s licensing and history. Your state’s accountancy board can also provide more details about a pro’s credentials.

Ask if they’re insured: Mistakes happen. Professional liability insurance is a type of insurance that can help protect both the CPA and the customer if a dispute arises[0]

Track your finances

A NerdWallet account is the smartest way to track your savings, credit cards, and investments together in one place.

3. Make sure they’re a good fit

You wouldn’t want to work with anyone without having asked them at least a few basic questions about their process and how they’ll work with you. After all, you want to make sure you’re on the same page with the person who is going to handle your personal financial documents. Asking a few questions can also help you to gauge if the CPA is the right person for the job.

4. Review their fees

How much does a CPA cost? Well, that depends, but you can generally expect to pay more when working with a CPA compared with a general tax preparer. Some popular fee structures include:

For CPAs who charge according to form type, a 2022 survey by Drake Software found that the average charge for a basic, nonitemized 1040 was $265. Itemized returns were slightly more expensive, with an average fee of $319, and returns featuring Schedule C for business income averaged $442[0]

Regardless of how your CPA structures their payments, they should never charge you based on the size of your refund[0]

5. Do a final check

Finally, you’ll want to ask the following questions as a final form of assurance and insurance.

Q: Will you sign my return?

A: All tax preparers, including CPAs, should always sign a return and include their PTIN.

Q: Can you represent me in an audit?

A: CPAs have unlimited representation rights, so they can go to the IRS on your behalf to represent you for things such as audits or other tax issues.

A: They should. The IRS says that anyone preparing more than 11 tax returns needs to e-file[0]

Other types of tax preparers

If someone holds a CPA title, it’s a pretty good sign they’ve got some experience, but CPAs aren’t the only pros who can help you get your taxes done. CPAs tend to be pricier than other types of tax pros because of their level of experience and education, but depending on your needs, another type of tax pro can also do the job.

So whom can you trust? The IRS grants two other types of pros unlimited practice and representation rights:

There are also other tax preparers who may not hold these particular credentials but who have other types of educational training.

For example, individuals who participate in the IRS’ Annual Filing Season Program are required to complete 18 hours of continuing education per year, including hours on ethics and a refresher course[0]

Do you need a CPA for your taxes?

There’s no golden rule about when (or if it's necessary) to graduate from a do-it-yourself approach to working with a CPA. Some people may never need anything more than quality tax-prep software or another type of tax preparer to complete their annual returns. This could be especially true if your tax situation is pretty simple or you feel reasonably confident about your taxes.

There are also free options: People who earn less than a certain amount each year may qualify for IRS Free File or another type of free service.

Calling in a CPA could make sense if you have complicated questions or need extra help. Certain life events — such as marriage, divorce, death, retirement, a home purchase or working with new types of investments — can make filing taxes more complex.

Working with a pro could be the way to go if you need help navigating those events. Many small-business owners often choose to work with CPAs because of the nuance required to fill out their returns.

Some people also prefer to work with CPAs simply for the ability to ask questions face to face. The bottom line? It ultimately comes down to your preference and comfort in navigating the tax world.

What's the difference between a CPA and a tax preparer?

A CPA is a type of credentialed accountant who may specialize in tax preparation and has unlimited representation rights in front of the IRS. Tax preparers are individuals who may or may not be credentialed. Anyone who accepts a form of payment for preparing taxes should at the very least, however, have a preparer tax identification number (PTIN).

What’s the difference between a CPA and a tax advisor?

A tax advisor is a financial services provider who specializes in managing tax issues, such as working with individuals or businesses on tax minimization strategies. Tax advisors may also assist in the preparation of tax returns, but their range of work is typically more complex.

A CPA, on the other hand, is a credentialed accounting professional who might or might not offer tax planning or tax advisory services, depending on their area of expertise.

Professionals who might offer tax advisory services include:

What's the difference between a CPA and a tax preparer?

A CPA is a type of credentialed accountant who may specialize in tax preparation and has unlimited representation rights in front of the IRS. Tax preparers are individuals who may or may not be credentialed. Anyone who accepts a form of payment for preparing taxes should at the very least, however, have a preparer tax identification number (PTIN).

What’s the difference between a CPA and a tax advisor?

A tax advisor is a financial services provider who specializes in managing tax issues, such as working with individuals or businesses on

tax minimization strategies

. Tax advisors may also assist in the preparation of tax returns, but their range of work is typically more complex.

A CPA, on the other hand, is a credentialed accounting professional who might or might not offer tax planning or tax advisory services, depending on their area of expertise.

Professionals who might offer tax advisory services include:

Taxpayers no longer have to fear the IRS knocking on their doors. IRS is ending practice.

People no longer have to fear IRS agents will drop by unannounced because the agency said Monday it’s ending that practice, effective immediately, to help ensure the safety of its employees and taxpayers.

The change reverses a decades-long practice by IRS Revenue Officers, the unarmed agency employees whose duties include visiting households and businesses to help taxpayers resolve their account balances by collecting unpaid taxes and unfiled tax returns. Instead, people will receive mailed letters to schedule meetings, except in a few rare circumstances.

“These visits created extra anxiety for taxpayers already wary of potential scam artists,” IRS Commissioner Danny Werfel said in a statement. “At the same time, the uncertainty around what IRS employees faced when visiting these homes created stress for them as well. This is the right thing to do and the right time to end it.”

No. With extra money from the Inflation Reduction Act, the IRS will have more staff to do compliance work and chase high-income earners avoiding taxes, Werfel said.

“Improved analytics will also help IRS compliance efforts focus on those with the most serious tax issues,” Werfel said. “We have the tools they need to successfully collect revenue without adding stress with unannounced visits. The only losers with this change in policy are scammers posing as the IRS.”

The move will also protect IRS employees, who have felt more under attack in accurate years. “The safety of IRS employees is of paramount importance and this decision will help protect those whose jobs have only grown more dangerous in accurate years because of false, inflammatory rhetoric about the agency and its workforce,” said Tony Reardon, National President of the National Treasury Employees Union.

Ethan Miller checks the IRS website while working on his taxes at home in Silver Spring, Md., Friday, Jan., 21, 2022. Tax filing season starts Monday and people can expect the task to be more cumbersome than usual this year thanks to an overloaded and understaffed IRS workforce and new complications from pandemic-related programs.

IRS scams: You may soon get an IRS letter promising unclaimed tax refunds. It's a scam.

If IRS agents need to meet with you, you’ll receive in the mail an appointment letter, known as a 725-B, and schedule a follow-up meeting and allow taxpayers to feel more prepared with necessary documents in hand when it is time to meet.

Story continues

This will help taxpayers resolve issues more quickly and eliminate the burden of multiple future meetings, the agency said.

Only on the rare occasion will IRS agents have to come unannounced. For example, when there's a summons, subpoenas or sensitive enforcement activities involving the seizure of assets, especially those at risk of being placed beyond the reach of the government. To put this in perspective, the IRS said these types of situations typically arise less than a few hundred times each year – a small fraction compared to the tens of thousands of unannounced visits that typically occurred annually under the old policy, it said.

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to their free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.  

This article originally appeared on USA TODAY: IRS ends unannounced visits to keep taxpayers safe and scammers away