How to Be Paid Tax Preparer
Nothing is inevitable except death and taxes, or so the saying goes. For the taxpayer, this might seem like a bad thing, but not for a career seeker. Though many individuals choose to prepare their own returns, businesses and individuals with complex filing situations often pay to have their returns prepared, quarterly or annually. To get into this field, you might decide to train and test to become a CPA (certified public accountant), or tax attorney. You may work for the IRS for five years or more or test to become an enrolled agent. You can also, on a much shorter timeline, train as a tax preparer. Until 2011, unless you are in California or Oregon, you can simply charge fees to prepare taxes without any prior education or training.
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Instructions
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Take a tax preparation course. If you have no legal, accounting or IRS background, it is a good idea to start with a basic course on preparing tax returns. The course will likely start with information on preparing individual returns. You will learn about IRS forms and instructions and basic tax terminology. Most importantly, a good tax course will direct you to the resources any tax preparer needs to find critical information.
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Begin to prepare returns for a fee. One of the easiest ways to do this is to work for a tax preparation company. Many operate storefront offices in cities large and small across the U.S. Starting to prepare returns in a company setting will give you not only immediate experience, but will allow you to watch and learn from more experienced preparers. Often, companies that offer tax preparation classes hire at least some students from those classes for the January-to-April tax season.
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Study the tax code and relevant reference material. Even licensed tax preparers, attorneys and CPAs are required to continue their education, in part because the Internal Revenue Code is continually being revised. Even if it were static, it would be next to impossible to become familiar with every aspect of the code. Stay engaged with the material. Learn as much as you can about current rules and stay on top of changes as they occur. Study up on business--as well as individual--tax regulations.
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Market yourself. Once you have completed one or more seasons at a tax preparation company, you may want to go after your own clients. Let your friends and family know about your new status. Even if you only feel comfortable preparing simpler individual returns at first, you will start to make a name for yourself. If you are thorough and conscientious, your reputation will continue to develop.
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Get licensed. If you enjoy preparing tax returns for a fee, you might consider becoming an enrolled agent. Enrolled agents, in addition to preparing returns, can represent their clients before the IRS, in case of an audit, for example. Unless you have worked five years for the IRS, you will have to take a comprehensive exam to be licensed as an enrolled agent. You will also have to pass a background check.
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Tips & Warnings
If you are in California, you will have to be a Certified Registered Tax Preparer to charge to prepare returns. To certify, you have to undergo 60 hours of "qualifying tax education" to start, and then finish 20 continuing education hours every subsequent year. You will also need to have a preparer bond of at least $5,000 as long as you are preparing taxes.
If you are in Oregon, you will have to complete 80 hours of approved instruction and pass a test to be a tax preparer. You must also be at least 18 years of age and a high school graduate.
In 2011, the IRS will begin requiring all paid tax preparers to register with the agency, get an ID number, pass a test, and complete continuing education hours annually.
