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Palo Alto, California
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How to become a tax preparer?
Tell us everything we need to know to become a tax preparer.
Note: We've seen a lot of interest in this career, so we're looking for guidance from our community of professionals.
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5 answers
Patrick Meyer
Executive - Data Analytics and AI
750
Answers
Naperville, Illinois
Updated
Patrick’s Answer
To launch a successful career as a tax preparer, follow these actionable steps:
1. Even though a college degree isn't a must, having knowledge in accounting or finance can be a plus. Think about taking classes or earning certifications in tax preparation, accounting software, and relevant tax laws. Look for tax preparation courses at community colleges, vocational schools, or online that cover individual and business taxation, tax forms, deductions, credits, and IRS rules.
2. To legally prepare tax returns for a fee, you need to get a Preparer Tax Identification Number (PTIN) from the IRS. This unique identifier is mandatory for anyone preparing or assisting in preparing federal tax returns. Apply for a PTIN online via the IRS website. Keep in mind, there might be fees involved.
3. Though not required, professional certification as a tax preparer can boost your reputation and job prospects. The IRS's Annual Filing Season Program (AFSP) offers voluntary certification for tax preparers who meet continuing education requirements and pass a competency test. Also, groups like the National Association of Tax Professionals (NATP), the National Association of Enrolled Agents (NAEA), and the Accreditation Council for Accountancy and Taxation (ACAT) provide certification programs for various skill levels.
4. Stay current on tax laws and regulations as they can change. Subscribe to tax-related publications, attend continuing education courses, join professional organizations, and use online resources from the IRS and other trusted sources to keep up with tax-related news and updates.
5. Hands-on experience is key. Gain experience through internships, entry-level jobs at tax preparation firms, or by volunteering to help with tax preparation services for individuals or community groups. Building a good reputation and relationship with clients can help you attract and keep clients, leading to a successful tax preparation business over time.
6. As a tax preparer, you need to meet certain regulatory requirements and ethical standards. Get to know the IRS Circular 230 regulations, which detail the rules for tax professionals, including conduct standards, duties, and penalties for non-compliance. Also, be aware of state-specific licensing requirements and regulations for tax preparers, as these can differ by location.
7. As you gain more experience and expertise in tax preparation, think about specializing in areas like individual taxation, small business taxes, estate and gift taxation, or international taxation. Continuing education is key for staying up-to-date on tax laws, regulations, and best practices. Take part in advanced training programs, earn additional certifications, and look for professional development opportunities to boost your skills and knowledge.
By following these steps and investing in your education, training, and professional development, you can start a fulfilling career as a tax preparer and offer valuable services to individuals and businesses needing help with their taxes. Always maintain high ethical standards, prioritize continuous learning, and adapt to changes in tax laws and regulations to succeed in this vital and ever-changing profession.
1. Even though a college degree isn't a must, having knowledge in accounting or finance can be a plus. Think about taking classes or earning certifications in tax preparation, accounting software, and relevant tax laws. Look for tax preparation courses at community colleges, vocational schools, or online that cover individual and business taxation, tax forms, deductions, credits, and IRS rules.
2. To legally prepare tax returns for a fee, you need to get a Preparer Tax Identification Number (PTIN) from the IRS. This unique identifier is mandatory for anyone preparing or assisting in preparing federal tax returns. Apply for a PTIN online via the IRS website. Keep in mind, there might be fees involved.
3. Though not required, professional certification as a tax preparer can boost your reputation and job prospects. The IRS's Annual Filing Season Program (AFSP) offers voluntary certification for tax preparers who meet continuing education requirements and pass a competency test. Also, groups like the National Association of Tax Professionals (NATP), the National Association of Enrolled Agents (NAEA), and the Accreditation Council for Accountancy and Taxation (ACAT) provide certification programs for various skill levels.
4. Stay current on tax laws and regulations as they can change. Subscribe to tax-related publications, attend continuing education courses, join professional organizations, and use online resources from the IRS and other trusted sources to keep up with tax-related news and updates.
5. Hands-on experience is key. Gain experience through internships, entry-level jobs at tax preparation firms, or by volunteering to help with tax preparation services for individuals or community groups. Building a good reputation and relationship with clients can help you attract and keep clients, leading to a successful tax preparation business over time.
6. As a tax preparer, you need to meet certain regulatory requirements and ethical standards. Get to know the IRS Circular 230 regulations, which detail the rules for tax professionals, including conduct standards, duties, and penalties for non-compliance. Also, be aware of state-specific licensing requirements and regulations for tax preparers, as these can differ by location.
7. As you gain more experience and expertise in tax preparation, think about specializing in areas like individual taxation, small business taxes, estate and gift taxation, or international taxation. Continuing education is key for staying up-to-date on tax laws, regulations, and best practices. Take part in advanced training programs, earn additional certifications, and look for professional development opportunities to boost your skills and knowledge.
By following these steps and investing in your education, training, and professional development, you can start a fulfilling career as a tax preparer and offer valuable services to individuals and businesses needing help with their taxes. Always maintain high ethical standards, prioritize continuous learning, and adapt to changes in tax laws and regulations to succeed in this vital and ever-changing profession.
Swacella Little
Contact tracer/health information technology
3
Answers
Birmingham, Alabama
Updated
Swacella’s Answer
Hello 👋! To become a Tax Preparer … You have to work with a Tax Company for at least 1 year to gain knowledge of Doing taxes . Or , most time , you can volunteer at a VITA volunteer site to get trained to do taxes with no experience, but they will train you to do base taxes only . I have being doing taxes for over 13 years now and love 💕 what I do . I started off working with a major tax company and after 10 years , I started my own Tax Business 👩💼 and never looked back . I will say this it’s challenging but yet , it’s rewarding at the same time . So, I will start off by volunteering at a VITA and see how you like it . Good luck 👍
Nicky Sarris
Executive Concierge
3
Answers
Tarpon Springs, Florida
Updated
Nicky’s Answer
Hello! All of the advice given here is spot on! I just wanted to say that I have a full-time job and prepare taxes only during tax season (Feb - April 15). It can be a highly lucrative "side" job and I have gained several clients over the years that continue to come back and refer others to me year after year!
Grant Conrad
Risk & Financial Advisory Analyst
25
Answers
Seattle, Washington
Updated
Grant’s Answer
Hi,
To become a tax preparer, you'll need to follow several steps:
1. Get a High School Diploma: As the first step, most tax preparers need a minimum of a high school diploma or the equivalent. However, college education is a huge plus.
2. Obtain an Identification Number: In the United States, for example, all paid tax preparers must have a Preparer Tax Identification Number (PTIN). You can obtain this number from the Internal Revenue Service (IRS).
3. Understand the Requirements: Depending on where you are, there may be additional requirements. Some states in the U.S. require tax preparers to pass a qualifying exam, complete annual continuing education courses, and/or pay a fee.
4. Get Training: Many community colleges, vocational schools, and other educational institutions offer tax preparation courses. These often cover the basics of federal and state income tax laws, and provide hands-on training in preparing tax returns.
5. Consider Certification: In the U.S., becoming a certified tax preparer can enhance your credentials. The IRS offers a voluntary certification program known as the Annual Filing Season Program (AFSP).
6. Gain Experience: Many firms hire entry-level tax preparers. This can be a great way to get hands-on experience and learn from seasoned professionals. Over time, you can take on more complex tax preparation tasks.
7. Stay Current: Tax laws change regularly. Successful tax preparers stay up-to-date with these changes and continually refine their understanding of tax codes.
8. Consider Specializing: As you gain experience, you may choose to specialize in a particular area, such as small business taxes, estate taxes, or international tax law. Specialization can set you apart and potentially allow you to charge higher fees.
Remember, ethics and accuracy are huge in this profession. Missteps can lead to penalties for both you and your clients. Always work to understand your clients' needs and provide accurate, lawful tax preparation services.
To become a tax preparer, you'll need to follow several steps:
1. Get a High School Diploma: As the first step, most tax preparers need a minimum of a high school diploma or the equivalent. However, college education is a huge plus.
2. Obtain an Identification Number: In the United States, for example, all paid tax preparers must have a Preparer Tax Identification Number (PTIN). You can obtain this number from the Internal Revenue Service (IRS).
3. Understand the Requirements: Depending on where you are, there may be additional requirements. Some states in the U.S. require tax preparers to pass a qualifying exam, complete annual continuing education courses, and/or pay a fee.
4. Get Training: Many community colleges, vocational schools, and other educational institutions offer tax preparation courses. These often cover the basics of federal and state income tax laws, and provide hands-on training in preparing tax returns.
5. Consider Certification: In the U.S., becoming a certified tax preparer can enhance your credentials. The IRS offers a voluntary certification program known as the Annual Filing Season Program (AFSP).
6. Gain Experience: Many firms hire entry-level tax preparers. This can be a great way to get hands-on experience and learn from seasoned professionals. Over time, you can take on more complex tax preparation tasks.
7. Stay Current: Tax laws change regularly. Successful tax preparers stay up-to-date with these changes and continually refine their understanding of tax codes.
8. Consider Specializing: As you gain experience, you may choose to specialize in a particular area, such as small business taxes, estate taxes, or international tax law. Specialization can set you apart and potentially allow you to charge higher fees.
Remember, ethics and accuracy are huge in this profession. Missteps can lead to penalties for both you and your clients. Always work to understand your clients' needs and provide accurate, lawful tax preparation services.
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
6180
Answers
Gold Coast, Queensland, Australia
Updated
James Constantine’s Answer
Hello CVOH,
Embarking on the journey to become a tax preparer? Here's your roadmap to success:
Education is Key: Start with a high school diploma or its equivalent. A background in accounting, finance, or business is a huge plus. Why not consider a bachelor’s degree in these fields? It will equip you with a robust understanding of tax laws and procedures.
Certification Matters: Although not always mandatory, professional certifications can boost your reputation and make you more appealing as a tax preparer. Here are some noteworthy ones:
- IRS Certification: The IRS offers the Annual Filing Season Program (AFSP) for aspiring tax preparers. With 18 hours of continuing education and a tax law exam under your belt, you'll earn an Annual Filing Season Program Record of Completion.
- Enrolled Agent (EA) Designation: EAs are tax practitioners licensed by the federal government, known for their tax expertise. To become an EA, pass a three-part Special Enrollment Examination (SEE) or gain five years of IRS work experience.
- CPA License: CPAs are state-licensed professionals providing tax and accounting services. To become a CPA, fulfill your state’s board of accountancy's educational, experience, and examination requirements.
- ATP Designation: The National Association of Tax Professionals (NATP) offers the ATP designation. Pass an exam and complete 30 hours of continuing education every three years to earn it.
Experience is Golden: Get your hands dirty with real-world experience as a tax preparer intern or assistant. Internships, part-time jobs, or volunteering at tax preparation events like the IRS’ VITA program can be great starting points.
Stay in the Loop: Tax laws and regulations are ever-changing. Keep yourself updated by attending tax seminars, webinars, workshops, and reading tax-related materials.
Entrepreneur or Employee: Choose your path - start your own tax preparation business or join an established accounting firm or tax preparation company.
Promote Yourself: Spread the word about your tax preparation services through networking, advertising, and referrals.
Professionalism is Paramount: Uphold the ethical standards and guidelines set by your professional organization or state board.
Specialize to Shine: Differentiate yourself by specializing in a specific area of taxation, like small business tax preparation or taxation for individuals with complex finances.
Keep in mind, requirements and certifications can differ by state and country. Do your homework to ensure you meet all necessary qualifications for your area.
May God bless your journey!
James Constantine Frangos.
Embarking on the journey to become a tax preparer? Here's your roadmap to success:
Education is Key: Start with a high school diploma or its equivalent. A background in accounting, finance, or business is a huge plus. Why not consider a bachelor’s degree in these fields? It will equip you with a robust understanding of tax laws and procedures.
Certification Matters: Although not always mandatory, professional certifications can boost your reputation and make you more appealing as a tax preparer. Here are some noteworthy ones:
- IRS Certification: The IRS offers the Annual Filing Season Program (AFSP) for aspiring tax preparers. With 18 hours of continuing education and a tax law exam under your belt, you'll earn an Annual Filing Season Program Record of Completion.
- Enrolled Agent (EA) Designation: EAs are tax practitioners licensed by the federal government, known for their tax expertise. To become an EA, pass a three-part Special Enrollment Examination (SEE) or gain five years of IRS work experience.
- CPA License: CPAs are state-licensed professionals providing tax and accounting services. To become a CPA, fulfill your state’s board of accountancy's educational, experience, and examination requirements.
- ATP Designation: The National Association of Tax Professionals (NATP) offers the ATP designation. Pass an exam and complete 30 hours of continuing education every three years to earn it.
Experience is Golden: Get your hands dirty with real-world experience as a tax preparer intern or assistant. Internships, part-time jobs, or volunteering at tax preparation events like the IRS’ VITA program can be great starting points.
Stay in the Loop: Tax laws and regulations are ever-changing. Keep yourself updated by attending tax seminars, webinars, workshops, and reading tax-related materials.
Entrepreneur or Employee: Choose your path - start your own tax preparation business or join an established accounting firm or tax preparation company.
Promote Yourself: Spread the word about your tax preparation services through networking, advertising, and referrals.
Professionalism is Paramount: Uphold the ethical standards and guidelines set by your professional organization or state board.
Specialize to Shine: Differentiate yourself by specializing in a specific area of taxation, like small business tax preparation or taxation for individuals with complex finances.
Keep in mind, requirements and certifications can differ by state and country. Do your homework to ensure you meet all necessary qualifications for your area.
May God bless your journey!
James Constantine Frangos.