Tax Preparation Course Training
The only requirement to be considered an income tax preparer, according to the Internal Revenue Service, is getting paid. Anyone who receives substantial compensation for preparing any or all of someone else's tax return meets the qualifications, and there is no nationally standardized certification or training for the designation. Nevertheless, certain training increases a tax preparer's cachet and can justify higher fees. Individuals and small businesses can also take courses, some of which are offered through the IRS, to improve their understanding of their own taxes. Finally, the IRS offers tax clinics and free training to volunteers who agree to provide tax assistance and advice to the elderly.
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Commercial Tax Service Preparers
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Employees at national tax service franchises are required to complete, at their own expense, a 75-hour training course provided by the company they work for, according to the Better Business Bureau. Other than that, the only requirements are a high school degree and a proficient command of the English language.
Professional Preparers
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Some types of professional tax preparer certification require only the completion of course requirements, relevant work experience, or a proven grasp of tax-related issues. They include Enrolled Agents, Accredited Tax Advisers and Accredited Tax Preparers. Enrolled Agents are approved by the IRS to represent taxpayers before the IRS. They must either pass a rigorous two-day exam on federal taxation or have previously worked at least five years for the IRS. After they have earned their certification, they must complete a specific number of course hours in tax regulations and accounting methods every year. An accredited tax adviser is considered capable of handling complex tax issues, such as estate planning and business tax returns. The Accreditation Council for Accountancy and Taxation bestows the credentials for accredited tax advisers after they have completed a basic tax preparation course provided by the National Endowment for Financial Education. They must also meet a continuing education requirement of 90 hours every three years.
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Tax Preparers with Specific Degrees
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Accountants, Certified Public Accountants and attorneys have achieved the highest level of tax-specific education. Most accountants have a college degree in their field, and although it is not required, some are also accredited by the Accreditation Council for Accountancy and Taxation. To become a Certified Public Accountants, an accountant must have a college degree in the field and pass a state exam. Tax attorneys have completed law school and passed the bar exam.
Accredited Tax Preparer
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The Accreditation Council for Accountancy and Taxation, a national professional organization, offers an optional certification for tax preparers who have passed an exam testing their competency in the field. The credential, called Accredited Tax Preparer does not require specific training, but the ACAT offers two study manuals and a live review session. The 3½-hour, multiple-choice exam measures proficiency in the preparation of individual tax returns, comprehensive 1040 issues, and ethics. It costs $200 (as of 2010).
IRS Clinics
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The U.S. government offers several online workshops (see Resources) that are designed to help prepare individuals and businesses to prepare their own taxes. More involved IRS clinics are available to volunteers who agree to advise the elderly on their taxes through the IRS Volunteer Income Tax Assistance and Tax Counseling for the Elderly Programs. Participants in these programs are required to be certified and can enroll in seven online courses: basic, intermediate, advanced, military, international, foreign students and scholars, and residents of Puerto Rico. The courses are all aimed at teaching students to prepare accurate tax returns. They cover the different types of filing requirements, tax credits and exemptions, types of income and other general tax form topics.
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References
Resources
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