Frequently Asked Questions
Does Avendaño & Jambe Tax Services have an office location?
No; both Susan Avendaño and Lindsay Jambe work remotely from home, however a rented meeting room can be arranged, if necessary. Telephone or video conference meetings are also available.
How long should I keep copies of my tax returns and records?
You should keep copies of all tax returns indefinitely.
Supporting documents and records of income and deductions should be kept for a minimum of 4 years after the due date of the return or the date it was filed, whichever is later. The normal statute of limitations is 4 years, however, in the event fraud is discovered, the statute could be extended up to 7 years.
Records and documentation relating to assets, such as real estate, stocks, partnership interests or other valuable property, should be kept for the entire period that you hold the asset and at least for 4 years after you sell or dispose of it. Examples of records to keep are purchase records, improvements, additional capital paid in, distributions received, loan refinances, and selling information.
We recommend keeping digital copies so that you don’t have to store paper which can be lost or destroyed. Offsite or cloud back-ups are also a good idea in the event something happens to your computer or hard drive.
Do you take clients for bookkeeping without tax services?
We prefer not to. Our bookkeeping rates are typically higher than a company or individual who focuses primarily or only on providing bookkeeping services. It is more cost effective for our tax clients as the time to prepare the tax return is typically less when we’ve prepared the bookkeeping, thus creating savings on the tax preparation fees.
What is an Enrolled Agent?
The Internal Revenue Service describes the Enrolled Agent as follows:
An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee. Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.
Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before. See: https://www.irs.gov/tax-professionals/enrolled-agents/enrolled-agent-information
What is the difference between an Enrolled Agent and a CPA?
While both an Enrolled Agent (EA) and Certified Public Accountant (CPA) have the same rights to practice before the Internal Revenue Service, there are some important differences.
Enrolled Agents are tax professionals who can assist clients with preparing and filing tax returns, tax audits, collection issues, tax planning, and bookkeeping.
CPAs can hold a variety of positions or specialties in the accounting industry, including taxation. Some CPAs can also perform GAAP accounting, compile and review Financial Statements to comply with bank loan covenants, act as Chief Financial Officers for corporations, etc.
Both have continuing educations requirements:
Enrolled Agent:
- 72 hours of CPE credits over a 3 year period
- All CPE credits must be Taxation subjects other than the required Ethics
- Minimum of 16 CPE credits per year
- 2 credits of Ethics education per year
CPA
- 80 hours of CPE credits over a 2 year period
- 50% of total credits must be in technical subjects (GAAP Accounting, Financial Statement Auditing, Governmental Auditing, Business Law, Economics, Finance, Information Technology, Management Services, Taxes etc.)
- Minimum 20 CPE credits per year (12 technical)
- CPE Credit allowed for non-technical subjects such as Business Management, Communication and Marketing, Computer Software and Applications, Personal Development, Personnel/Human Resources)
- 4 credits of Ethics education per 2 year period
- There may also be additional requirements depending on the State the CPA is licensed in.
An EA is authorized by the Federal government.
A CPA is licensed by their State government.
The above description is a brief summary of some differences that we believe are notable. The information provided is not intended to be a complete or detailed comparison or to indicate preference toward any particular professional designation.