A tax preparer plays a crucial role in filing tax returns for individuals and businesses. Tax preparers help them in obtaining maximum deductions. As tax laws keep changing, individuals and businesses need professionals to deal with it. In this way, Tax preparers have chances to grab the clients and scale up their work.
Tax preparers perform the two most important duties. Firstly, a tax preparer provides advice to clients. Secondly, they ensure their client’s compliance with Federal and State laws.
If someone is thinking of becoming a tax preparer, then prepare yourself before the season. Tax return season is from January to April and during this time it’s easy to get clients.
Now you must be thinking about how you can become a Tax preparer. Listed below is the complete guide to becoming a tax preparer:
Get a Tax Preparer Training Course
A layman can’t start filing tax returns or audit work without proper knowledge and training. Whether it’s an individual or a business, both want a reliable Tax preparer. Though relatively, it’s easy for a fresher to grab an individual but still knowledge and training is a must.
For this purpose, firstly get all the basic knowledge of it. Moreover, it’s important to get your education in a relevant subject like accounting. In this way, you would have a relevant background and knowledge of your work. If someone wants to connect with a firm, then a relevant degree is a must.
Secondly, tax preparer training courses are essential. Without training you can’t enter this professional field. In training courses, your basics get revised and the experts train you for professional work. They help you to learn how to fill out tax forms and about annual tax returns.
Check Requirements to Become a Tax Preparer
After getting all the basic knowledge and expert training, check the requirements of the Federal and your State. Some states require proper licensing to become a tax preparer. Whereas others only want PTIN. So, it’s important to check the requirements beforehand.
Similarly, association with a legal firm also requires several documents. Prepare all the required documents if you want to work as an agent of a legal firm.
Obtain Preparer Tax Identification Number (PTIN)
It’s compulsory to have a valid PTIN number for Tax return preparers. First time PTIN applicants get the number in a few minutes. This procedure has a certain fee which you need to pay. Whereas, if you file for a PTIN number on paper, it’s a comparatively long procedure.
Whereas, to renew PTIN, log in your existing account. Pay the fee and you will get your PTIN number. After this step, you can prepare tax returns. However as stated earlier, some states may have the requirement to acquire a license too. So, in that case, you would have to get it too.
Search for Clients
After fulfilling all the legal procedures PTIN and licensing, search for clients. Hunting a client’s process depends upon your interest and expertise. If you are new to work, then it’s better to start with individual clients. This will be comparatively easy and will help you to train yourself more.
After that, you can connect with businesses and firms. That’s more profitable work and will help you grow more. Try to connect with businesses before the tax-return season.
