If you’re looking for information on how to become a tax preparer, you have come to the right place. We will discuss the things you need to know to become a successful tax preparer.
First of all, you need to understand what a tax preparer is. The main responsibility is to prepare tax returns for businesses as well as individuals. If you become a tax preparer, you will need to look over various financial documents and receipts and ask the businesses or individuals various questions to determine expenses, income and various other figures to prepare the tax return in the right manner.
The main job is to help business owners and individuals prepare proper tax returns as they may not be able to prepare tax returns on their own. It is your responsibility to follow all the regulations, rules and tax codes set by the Internal Revenue Service.
As far as the educational requirements are concerned, you need to have a high school diploma. An associate or bachelor’s degree is not required to enter into the industry. However, strong abilities in customer service, computer science and math are required to move ahead in this career. You will also need to have a basic understanding of various tax regulations such as familiarity with tax forms and filing deadlines.
Additional professional education becomes a necessity as most preparers have only a high school diploma. Various tax service franchises, vocational schools and technical colleges offer many different tax training programs. Courses in income, exemptions, dividends, electronic filing, 1040 and W-2 forms are usually included in tax training programs.
Most states require a tax preparer to be registered by the tax educational council. As far as the requirements of registration are concerned, these vary by state but usually require completing a particular number of hours in a state accredited tax program. They are also required to have proper liability insurance.
The IRS also requires them to have a Preparer tax identification number as it allows IRS to keep track of people who do taxes in order to protect consumers from various illegal activities. To receive a tax identification number, an individual will need to complete a particular amount of continuing education credits along with an evaluation exam.
As far as making a career is concerned, it is recommended to start working at a tax service in the beginning for a few seasons. They will train you in various laws and regulations related to tax. Keep in mind that these regulations change each year and working at a tax service will help you gain invaluable experience.
Once you have enough experience, you may start working for the IRS or you may start your own business. If you pass the IRS sponsored Special Enrollment Exam, you may also formally represent your clients during a tax investigation or IRS audit. Now that you understand how to become a tax preparer, you can get started on learning what you need to know to get started in this position.