How do i become a Tax Preparer?
To become a Tax Preparer, you typically need a high school diploma or GED and must complete tax preparation training. Gaining hands-on experience, either through entry-level positions or internships, is essential. You must register with the IRS for a Preparer Tax Identification Number (PTIN) to legally prepare taxes for compensation. Pursuing voluntary certifications, such as the IRS Annual Filing Season Program or becoming an Enrolled Agent, can improve your career prospects. Staying current with tax laws and regulations is crucial for long-term success in this field.
Obtain a high school diploma or equivalent
Most tax preparer positions require at least a high school diploma or GED as a basic educational requirement.
Complete tax preparation training
Enroll in tax preparation courses offered by community colleges, vocational schools, or tax preparation companies to learn tax laws, filing procedures, and software.
Gain experience
Work under the supervision of experienced tax preparers or in entry-level positions to gain practical experience.
Register with the IRS
Apply for a Preparer Tax Identification Number (PTIN) from the IRS, which is required for anyone who prepares or assists in preparing federal tax returns for compensation.
Consider certification
Pursue voluntary certifications such as the IRS Annual Filing Season Program (AFSP) or become an Enrolled Agent (EA) for greater credibility and career advancement.
Stay updated on tax laws
Continuously update your knowledge of tax laws and regulations through continuing education and professional development.
Typical requirements of a Tax Preparer
High school diploma or GED
A minimum educational requirement for most entry-level tax preparer positions.
Tax preparation training
Completion of a tax preparation course or on-the-job training to understand tax codes and filing procedures.
IRS PTIN registration
A valid Preparer Tax Identification Number (PTIN) from the IRS is mandatory for paid tax preparers.
Attention to detail
Strong analytical and organizational skills to accurately prepare tax returns and avoid errors.
Customer service skills
Ability to communicate effectively with clients and explain complex tax concepts in simple terms.
Alternative ways to become a Tax Preparer
On-the-job training
Some employers provide comprehensive on-the-job training for new hires without prior tax experience.
Work for a tax preparation company
Start as a seasonal or entry-level employee at a tax preparation firm, which often provides training and advancement opportunities.
Self-study and certification
Use IRS resources and self-study materials to prepare for certification exams such as the Enrolled Agent exam.
Accounting degree
Pursue an associate or bachelor’s degree in accounting, which can provide a broader foundation for tax preparation and related careers.
How to break into the industry as a Tax Preparer
Take a basic tax preparation course
Enroll in a reputable tax preparation course to learn the fundamentals and gain a certificate of completion.
Apply for entry-level positions
Seek seasonal or part-time positions with tax preparation firms to gain hands-on experience.
Network with professionals
Join professional organizations or attend industry events to connect with experienced tax preparers and potential employers.
Obtain your PTIN
Register with the IRS to get your Preparer Tax Identification Number, a requirement for paid tax preparers.
Build a client base
Start by preparing taxes for friends, family, or small businesses to build experience and referrals.
Pursue additional credentials
Consider becoming an Enrolled Agent or participating in the IRS Annual Filing Season Program to enhance your qualifications.