6 Black Tax Experts to Watch in 2024

The Quest for Black CPAs: A Challenge Worth Undertaking

Every month, countless individuals type “Black CPA near me” into search engines, seeking the expertise of these financial professionals. Yet, a startling statistic reveals that only 2% of Certified Public Accountants (CPAs) in the United States identify as Black, as per the latest insights from the Association of International Certified Professional Accountants. This gap poses a significant hurdle for those looking to partner with a Black CPA, but those who persist in their search may find the effort deeply rewarding, notes Angie Toney, CEO of Oasis Tax Advisory Services.

The Importance of Trust in Tax Preparation

“When working with non-Black CPAs, there can be an underlying feeling of judgment—whether constructed or genuine,” Toney explains. “It ultimately boils down to trust and approachability, and supporting our own professionals is essential.” To shed light on some common concerns for taxpayers this season, we engaged with several Black tax experts about when to hire a tax professional and ways to maximize potential credits and deductions.

Know Who's Preparing Your Taxes

Nayo Carter-Gray, the mastermind behind 1st Step Accounting, emphasizes the importance of knowing who prepares your tax returns. She warns about 'ghost preparers'—individuals who may not be legitimately authorized to prepare tax returns. “Taxpayers should verify the registration of their tax professionals through the IRS website to ensure adherence to ethical standards,” she advises.

Benefits of E-Filing

Joel Lee, owner of Thorough Financial Services, vouches for electronic filing. “Opting for e-filing makes the tax submission process not only quicker but also much safer than traditional paper methods. Plus, IRS-approved software often guides you through the filing process step-by-step, ensuring accuracy,” he elaborates.

When to Seek Help

Calvin Harris, CEO of The New York State Society of CPAs, underscores the significance of professional advice: “If there's any uncertainty about your tax situation—even the slightest—engage with a professional. You don’t want to find yourself in a quandary with the IRS. While tax software can be beneficial, it’s easy to misinterpret or make errors without proper knowledge,” he cautions.

The Balance of Self-Preparation and Professional Help

Angie Toney advocates for self-preparation, especially for young individuals just starting in their financial journey. “Understanding the basics of tax preparation is crucial,” she states. “However, as financial situations become more intricate—especially with investments or rental properties—it's essential to consult a professional to avoid inadvertently overpaying or misclaiming deductions.”

Planning Ahead to Reduce Tax Obligations

Julian Davis, director at Homrich Berg, explains that some strategies for minimizing tax responsibilities must be implemented within the tax year itself. “While there are post-year actions you can take, proactive planning before December can mitigate surprises during tax season,” he advises. Recognizing tax credits available—like those for children, education, or green purchases—can also provide significant savings.

Common Pitfalls in Tax Advice

Among the misguiding information circulating, Laura Tshilumba, international practice leader at HLB Gross Collins, points out that the notion that Americans abroad need not file U.S. tax returns is grievously incorrect. “I've seen clients face significant complications and costs because they acted on this advice,” she notes, advocating for proper consultation with an international tax expert.

Avoiding Oversimplified Tax Strategies

Nayo Carter-Gray cautions against blanket advice, particularly for small business owners considering S corporation status. “Many do not realize the accompanying salary requirements that come with this designation, which can be burdensome for new enterprises,” she warns, advocating for personalized tax strategies instead. Meanwhile, Calvin Harris notes the prevalence of tax professionals who guarantee refunds, which he identifies as a red flag: “If something seems too good to be true, it likely is.”

Meet the Experts

Angie Toney specializes in devising strategies for clients tangled in unresolved tax issues and created The Executive Touch to foster education and collaboration among tax professionals. Nayo Carter-Gray aims to ease the burden of accounting as the founder of 1st Step Accounting. Joel Lee focuses on empowering parent entrepreneurs at Thorough Financial Services. With three decades of experience, Calvin Harris champions the profession as the New York State Society of CPAs CEO, while Julian Davis actively engages in community service as a certified financial planner. Lastly, Laura Tshilumba facilitates hassle-free tax compliance for American expatriates, ensuring they navigate their obligations smoothly.