What a Certified Public Accountant Exactly Does

Many people often use the terms accountant and Certified Public Accountant interchangeably. After all, these terms do not matter unless you are looking for something beyond tax preparation. However, if you ever need audit representation, auditing and other attestation services, forensic research, income tax services for small businesses, or anything else that requires a CPA, you must know clearly the difference between a staff accountant and a Certified Public Accountant.

What is a CPA?

CPA stands for Certified Public Accountant. A CPA does much more than taxes. A CPA works with businesses or individuals on auditing, forensic research, financial consulting, investment accounting, tax planning, and much more. A CPA is skilled in various forms of accounting.

How to Become a CPA?

To become a CPA, an accountant has to meet various requirements. The terms and conditions to become a CPA vary from state to state. But still, there are some common conditions that every accountant has to fulfill to become a licensed CPA that include:

• A CPA must have a bachelor’s degree in accounting with at least 150 credit hours
• A CPA must have at least two years of proven public accounting work experience
• A CPA must have passed all four parts of the CPA exam, which is the same from state to state and covers the same topics. The exam includes topics like auditing, financial accounting and reporting, regulation, investment accounting, and more
• Many states have state-specific additional requirements for an accountant to apply for a CPA license, which CPAs have to follow

How to Find a Good CPA?

The best way to find a good CPA is to search online for accountants in your area or seek references from family, friends, and colleagues. Just make sure you perform basic research like checking for a license number, asking about experience, and reading reviews before hiring a Certified Public Accountant.

Agro Accounting CPA is the name to count on for all your accounting needs. If you need any assistance in filing your taxes or bookkeeping, we are here at your service!

How to Respond to IRS Notice CP2000

 

A taxpayer receives the IRS CP2000 Notice when the information provided on a tax return by the taxpayer does not match the information the IRS has from third-party sources. It is also (less commonly) called an underwriter inquiry. The automated system of the IRS sends this notice to the taxpayer when it detects some discrepancies with the tax return. Thus, the notice you receive may or may not be correct. There are three courses of action when responding to an IRS CP2000 Notice:

• You can agree with the IRS CP2000 Notice
• You can disagree with the IRS CP2000 Notice
• You can partially agree with the IRS CP2000 Notice

Here is how to respond to the IRS Notice CP2000:

If you agree with the IRS CP 2000 Notice, you have to respond back to the IRS with the response form and payment (if applicable). You can ask your accountant to respond to the notice for you. The notices from the IRS are not audits, but they work similarly. If you owe any amount to the IRS in taxes, pay it out with the response form and explanation.

If you do not agree to the IRS CP2000 Notice, you can complete and return the response form. There, you have to specify your reason(s) for not agreeing to the notice and supply any documentation to support your statement. If the information reported to the IRS by a third party is not correct, then you can contact the third-party information provider to correctly update it with the IRS.

If you partially agree with the IRS CP2000 Notice, you need to respond via mail explaining your position to the IRS with the required forms and attached documents. You need not amend your return. Just provide the IRS with the right information. If it accepts your explanation, the IRS will update it on its end.

Get in touch with Agro Accounting CPA to get help with your response to IRS Notice CP2000.