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Most frequently asked questions about becoming a Tax Preparer.
20 November 2022
Every day, we have conversations with people about what it takes to become a tax preparer. The most frequent inquiries (FAQs) we receive regarding tax preparation are listed below.
WHAT KIND OF TRAINING IS REQUIRED TO WORK AS A TAX PREPARER?
Many individuals believe that in order to work as a tax preparer and file federal tax returns, they must hold a college degree, become Certified Public Accountants (CPAs), or have exceptional arithmetic skills. All of these are untrue! The truth is that there are now no official schooling requirements set by the IRS for anyone who wants to work as an entry-level tax return preparer.
HOW MUCH TIME WOULD IT TAKE ME TO LEARN HOW TO DO TAXES?
This is entirely up to you! When you complete at least two courses per week, a good introductory income tax preparation course, like the Comprehensive Tax Course from Surgent Income Tax School, can be finished in as little as 10 weeks. Online, self-paced course with email support from the instructor. So, how long it takes you to finish the course is entirely up to you.
DO I REQUIRE A LICENSE TO PREPARE TAXES?
Several states have their own tax preparer regulations, but the IRS currently does not require tax preparers to hold a license. To find out if your state currently governs tax preparers, visit our Tax Preparer Regulations by State page.
You ought to learn more about the IRS Annual Filing Season Program (AFSP), which is a voluntary program. The IRS has set this as the minimal requirement for tax preparers. The AFSP seeks to honor tax preparers without credentials who strive for greater professionalism. Being a part of this program is increasingly becoming a must because it also grants you some limited client representation rights before selecting IRS agents, representatives, and employees.
WHAT STEPS MUST I TAKE IN ORDER TO BECOME A TAX PREPARER?
There are a few fundamental steps you must take.
1. Enroll in a top-notch, entry-level tax preparation course.
2. Request from the IRS a Preparer Tax Identification Number (PTIN).
3. Verify the requirements for tax preparers in your state.
4. Keep learning since tax laws are constantly changing!
WHAT DO TAX PREPARERS DO THROUGHOUT THE YEAR?
The normal tax season, which runs from mid-January to mid-April each year, is when tax return preparers are often highly active. But many tax preparers have enough tax preparation work to keep them busy all year long, particularly if they have a lot of late filers and clients who pay their taxes on a quarterly basis.
In order to diversify their business and increase their income during the slow season, many tax preparers also offer complementary services like bookkeeping, payroll, financial services, and notarial services. Enrolled agents who prepare taxes can also provide representation services.
In the off-season, some tax preparers work in totally diverse fields, such as retail, landscaping, and other unrelated seasonal professions. While some people simply take the remainder of the year off and enjoy their summers and holidays. With this adaptable career option, there are so many possibilities!
WHAT DO TAX PREPARERS GET PAID?
Salary ranges for tax return preparers can be pretty wide. You will undoubtedly start out making less money. However, your income will increase as your clientele does! Additionally, if you continue your study every year and broaden your tax expertise, you'll be able to produce some extremely complex tax returns and charge significantly more for them.
According to the U.S. Bureau of Labor Statistics, the average annual wage was $49,550 in May 2019, with the lowest 10% earning $21,750 and the highest 10% earning $87,060. Remember that a lot of tax preparers only work three months out of the year. Therefore, it is possible to earn $50,000 in just three months! Consider how much money you could earn if you operated all year round and provided more services.
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ABOUT THE AUTHOR
Shatonya Thomas
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