WorldWide Drilling Resource

Drilling Into Money Not Boring by Mark E. Battersby The Professional Way to Find a Pro For those drilling professionals seeking help with tax preparation or with questions, the Internal Revenue Service (IRS) offers free advice - but it is free advice at a price. The IRS will not advocate aggressive tax solutions, nor can their answers be taken as gospel. In fact, the IRS may not stand behind incorrect advice or even an erroneous interpretation of its own rules. Bookkeepers are great for the day-to-day recordkeeping. Accountants, on the other hand, crunch those numbers tracked by the bookkeeper. When dealing with an accountant, don’t underestimate the importance of a CPA (Certified Public Accountant). Passing the CPA examination is frequently a guarantee of a certain level of skill. Most states require CPAs to have at least a college degree or its equivalent. Many, in fact, require postgraduate work. Although many CPAs advise and prepare tax returns, the CPA designation does not require a special knowledge of our tax laws. While CPAs and attorneys are permitted to practice before the IRS and the tax courts, another group of professionals, enrolled practitioners must successfully complete a three-day test that is all about taxes. The IRS requires a certain level of competence, adherence to rigid profes- sional standards, as well as requiring continuing professional education to maintain those skill levels. Typically, attorneys specializing in tax law are most often involved with complex transactions and document preparation. Although other tax professionals are af- forded some degree of client confidential- ity, for absolute confidentiality the use of tax attorneys and the protection they offer may be required. The first step to finding the right tax professional requires an inventory of what you and your drilling operation or business actually need in the way of services, advice and, most importantly, how much you can afford to pay for the advice or services. And, the best way to find someone to pre- pare the drilling operation’s tax returns or render needed tax advice is via a refer- ral from business associates, your banker, or attorney. If more possibilities are needed, every state has professional associations such as that for CPAs. Comparison shopping to find a tax professional to provide the level of service required is a process which should begin immediately. Now, after all, is the best time to find, evaluate, and begin a relationship with a tax professional who can provide the services you and your drilling business so badly need, at an affordable price. Mark Mark E. Battersby may be contacted via e-mail to michele@ worldwidedrillingresource.com 83 WorldWide Drilling Resource ® DECEMBER 2015 “Obedience is the mother of success and is wedded to safety.” Aeschylus