How to Become Tax Professional

Tax preparation entails more than money.

There are many paths to becoming a tax professional. You can go to work with a local accounting or tax firm, work with a national tax preparation company, or take some classes and go into business yourself. The profession will pay you well, as the median wage for a tax professional is $40,352, according to the Bureau of Labor and Statistics. Tax preparation is a complex field with an incredible amount of ambiguity written into tax law. Gaining as much knowledge as you can before looking for work will serve you well.

Instructions

1. Take accounting and tax classes at your local community college. Accounting courses will give you a solid foundation of tax compliance principles. Not needing an accounting background to prepare taxes is a "misconception that many people entering this field have" according to Jeremy Slaughter, MAcc, EA, an enrolled agent in Phoenix, Arizona.

2. Look for job openings with a tax preparation office. Choose wisely when looking for your first job. The most efficient way to learn tax law is with someone who has the experience and education to train you. Check his credentials to make sure he is either an Enrolled Agent, or a Certified Public Accountant (CPA). The Enrolled Agent takes a three-day test predominantly on tax and tax issues, and receives her license from the Internal Revenue Service. The CPA takes a three-day exam that includes tax and tax issues and receives a license from the state in which he does business.

3. Ask questions and gain insight into the industry. Learn all you can about tax law and how these laws affect each client. Tax laws can change year to year. Make sure you review all changes before each tax season. Find these changes on the first page of the Internal Revenue Service website each January.

   State tax laws vary, so review and learn the laws of the state in which you live and work as well.

4. Study and get yourself licensed. Become a licensed professional by taking the Enrolled Agent or CPA licensing tests. The CPA exam has other requirements that relate to accounting and business, such as a bachelor's degree in accounting, while the Enrolled Agent exam does not. If you are planning to remain in the tax field, the Enrolled Agent license is sufficient.

Tips & Warnings

• Take your time early in your career and study hard. It will make it easier as your career unfolds and you become increasingly busy, leaving no time to study.

References

• Occupational Wages in the United States. Bureau of Labor Statistics.
• Jeremy Slaughter MAcc, EA. Absolute Business Solutions LLC. Personal Interview September 30,2009.
• Enrolled Agent Information

Resources

• National Association of Enrolled Agents
• American Institute of Certified Public Accountants