How to Become an Accredited Tax Preparer

Tax preparers get more clients as tax time approaches.

Preparing an individual's or business's income tax forms is becoming increasingly more complex with new laws being passed every year. Many people turn to accredited tax preparers who they know will continuously monitor federal, state and local tax law changes to minimize current and future tax liabilities. Becoming an accredited tax preparer will make you a trusted professional who helps individuals with their accounting and tax needs.

Instructions

1. Acquire three years of tax preparation experience, including a thorough knowledge of the existing tax code and the preparation of individual, corporate and partnership tax returns. You can gain education in tax preparation either through a traditional school or an online institution. Some larger national tax preparers also offer training before you work in the field.

2. Take an examination to become an accredited tax preparer. This test is given by the Accreditation Council for Accountancy and Taxation. The three-hour examination consists of approximately 60 multiple-choice questions to test your proficiency in ethics and taxation. The required score is 70 percent.

   Alternatively, If you can demonstrate the successful completion of 60 or more qualifying education credits in tax preparation or planning, you may be eligible for this credential. Qualifying education is determined by the ACAT Board of Directors. Further, If you are a Certified Public Accountant, state licensed accountant, attorney or person with a graduate degree in taxation, you are qualified for this credential.

3. Keep abreast of changes in the tax laws by reading relevant materials and taking continuing education courses. Recognize that the laws are always changing, and it is necessary to keep acquiring additional knowledge.

Tips & Warnings

• Preparing taxes requires considerable research and attention to detail and accuracy, and it is essential be able to read thoroughly and quickly grasp an understanding of the material. In addition, you need an aptitude for working with figures and mathematical formulas. Since more returns are being completed on computers, familiarity with technology is also important.

• Check with your individual state for required licensing for tax preparation.

Resources

• Accreditation Council for Accountancy and Taxation