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Career opportunities in Tax Preparation
20 March 2022
It's critical to understand what tax preparers do on a daily basis if you're thinking about a career in this field. As the title suggests, the bulk of their work entails preparing tax returns for individuals, businesses, non-profits, and other organizations. Anyone who must file a tax form could be a potential client or customer.
As a licensed tax preparer, you might take on a variety of tasks, such as filing federal taxes for businesses, reviewing or submitting tax returns for individuals or non-profits, and proofreading and interpreting tax forms or the tax code for private persons or business owners.
Among the more common job titles for tax preparers are the following:
· Tax Form Interpreter
· Tax Preparer
· Tax Consultant
· Tax Advisor
· Tax filing expert
Some of this will depend on the company you work for, the kinds of clients you accept, and whether you are an independent contractor working for yourself or an employee working as a general tax counselor or tax prep specialist. By highlighting your areas of expertise—such as tax preparation, giving advice, or acting as a consultant, among other things—you can describe your function in a variety of ways.
Just be careful not to stray into legal counsel because you are not equipped to do so. Instead, you should always advise people to consult an attorney if they are experiencing more serious tax issues with the IRS or state tax authorities.
1.Situations or Special Problems That Need a Tax Preparer
The fate of a person's business depends on the tax filing status they select. With certain filing statuses, they can also claim a greater number of deductibles. The typical business owner, however, might not fully comprehend the significance of the various filing statuses and other tax concepts.
2. How to handle S-Corp status
One scenario where a tax preparer might assist a business owner is with S-Corp incorporation. Naturally, this needs to be filed with the Secretary of State in the person's home state. Once this is done, it's crucial to comprehend what this status entails in terms of the tax filing season. In the majority of states, S-Corporations have the freedom to choose the amount of income they report on their tax returns. This implies that you are not required to report all of your income for the tax year.
A tax consultant offers guidance and assistance to people, companies, and organizations on a range of tax-related concerns. They frequently assist customers with tax planning, prepare and file tax returns, conduct legal research, and represent them in disputes with tax authorities.
As tax consultant advances in their career and gets more involved in tax management and planning, their function may change and increase. Additionally, they could focus on tax research to counsel the team and other stakeholders.
A financial specialist with advanced training in tax accounting and tax law is a tax advisor. The assistance of a tax counselor is typically sought out in complex financial situations in order to reduce taxes due while maintaining legal compliance. Certified Public Accountants (CPAs), tax lawyers, enrolled agents, and some financial consultants are examples of tax advisors.
An individual who prepares, computes, and files income tax returns on behalf of individuals and businesses is known as a tax preparer.
LICENSES, CERTIFICATIONS, AND CREDENTIALS FOR TAX PREPARERS
A four-year degree is not a requirement for a preparer working with personal income taxes or even businesses, unlike tax attorneys or CPAs, however having one can help with client acquisition or building your reputation as a tax specialist. You can further your credentials by passing the Tax Preparer Exam (TPE), as was mentioned before, or you can certify yourself as an enrolled agent by passing the enrolled agent exam. Gaining a Preparer Tax Identification Number (PTIN) through the TPE will enable you to work as a tax preparer for customers during the annual filing season and help just about any taxpayer with queries regarding their refund, income tax return, or other tax-related matters. The IRS directly issues licenses to enrolled agents. The only other prerequisite is that you finish the 60 hours of National Association of Tax Professionals-approved tax and accounting instruction.
Find out what is needed to maintain your certification status active for each tax season once you have fulfilled the initial requirements to become a preparer. To demonstrate to the tax organizations of your state and the federal government that you are staying up to date on the tax laws and other information relevant to your position as a preparer, you typically need to put in a few more hours each year. It's critical to be aware of both the first and ongoing tax education standards set forth by your state before working with client taxes. To be sure you have what you need to keep working as a tax preparer, look into your state's standards.
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Sha’Tonya “Rosie” Thomas
The Texas Tax Pro. She opened the doors to her very first tax office in Dallas, Texas back in 2009. The first tax office Rosie has turned into a powerful enterprise now known as Thomas Financial LLC. Till date, Rosie has coached 110 plus tax professionals, of which 56 of those now run their own successful tax office. These are the stats that have earned her the moniker “The Texas Tax Pro”.