Basic Preparation for Income Tax Certification
Income tax preparers are highly sought professionals during tax season. To qualify for this seasonal job, professionals must complete some basic training by taking courses on tax laws, filing procedures and tax preparation software. Tax preparers must also have the experience and education required by their state government.
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The Facts
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Income tax preparers are required to complete a training course, which prepares them to properly interview clients, fill out tax forms and apply different tax laws. Some courses are also state-approved, and required to obtain a tax preparer license.
Training courses are offered in a variety of different formats, including online and classroom training. Tax preparation companies like H&R Block and Jackson Hewitt offer training courses to prospective employees. Training is also available through colleges and instructional books. The IRS offers training materials for volunteer income tax preparers.
Training
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A variety of online and college courses are available for income tax preparers. They cover topics such as tax forms, income tax credits and exemptions. Upon graduating, students should have the skills to prepare individual taxes according to the most recent tax laws.
Tax service companies also train students to prepare taxes. The majority of these courses are available to give seasonal tax preparers the skills they need to file basic income tax forms.
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Certification
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The Institute of Tax Consultants (ITC) and the Accreditation Council for Accountancy and Taxation (ACAT) offer certifications for tax preparers.
ACAT offers the Accredited Tax Preparer (ATP) designation, which requires three years of experience. It can be two years' worth of college courses and one year of experience, and a passing score on the ATP exam.
ITC offers certifications in three levels, including Certified Tax Preparer (CTP), Certified Tax Preparer Specialist (CTPS) and the Certified Tax Preparer Master (CTPM). Tax preparers are required to pass an exam and have three years of tax preparation experience, or a diploma in tax preparation.
Geography
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According to 2008 information from the IRS, Oregon and California are the only states that require tax preparers to obtain their license. The California Tax Education Council (CTEC) protects the public by making sure that tax preparers complete 60 hours of approved tax courses and retain a $5,000 bond.
The Board of Tax Practitioners in Oregon requires tax preparers to complete an approved 80-hour income tax law course and pass an exam. Tax preparers must be at least 18 years old, have a high school diploma or GED, and be supervised by a tax consultant.
Potential
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Maryland and Alabama are the most recent states to begin regulating tax preparers, and new laws may come into affect in 2010 to help ensure that tax preparers are ethical and qualified. A report from accountingweb.com states that by the end of 2009, IRS Commissioner Douglas Shulman plans to recommend that lawmakers pass new regulations, which may include improved training and licensing requirements for tax preparers across the country. The IRS will request input from different groups to come up with recommendations.
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