How to Become a Tax Preparer
A tax preparer is essential to helping individuals and companies take advantage of their yearly tax checks. Many tax preparers are very conscientious about how to properly convey what to expect upon filing their taxes and what exactly to need to cover the IRS with respect to what should be included in their return. This can help people to be better informed about their taxes and their chances for a successful outcome with their return. This article will address how to become a tax preparer.
Most tax preparers will be required by the IRS to be enrolled agents. Enrolled agents have the same protections as regular tax professionals, including the right to work independently and the ability to file your taxes on your behalf. There are a number of advantages to being an enrolled agent, including the fact that you are not personally liable for any errors or late payments, and that you will not have to provide legal representation and are not limited representation rights.
The second step to take when wanting to become a tax preparer is finding an accredited training program. This is imperative if you wish to start your own business and obtain large clients. Some preparers will attend specific courses and programs, while others will work through the IRS system on their own time. It is important to find a program that offers the education you will need to meet your state’s requirements for state tax returns or to become an enrolled agent in other states.
The third step in the process is gaining valuable knowledge through self-study. You can choose courses offered by local colleges or online. Many state and local agencies offer courses and seminars to teach individuals how to prepare tax returns for the state they live in. You may also consider taking an online seminar on tax preparation as well. Self-study courses are less expensive and allow you to work on your taxes at your own pace.
The fourth step in how to become a tax preparer and the best is to get certified by a reputable CPA. The CPA exam is administered by the National Taxpayers Association (NTA). Preparing your own tax records can be a time-consuming and daunting task with the wrong information plus a lagging computer and an in-depth understanding of tax codes. This can lead to mistakes, which are the root cause of a financial crisis for most people. If you become certified by the NTA, you will have the added benefit of increased credibility as an expert on tax affairs.
The fifth and final step is to take the local certified exam. Some states require individuals to pass their CPA examinations before they can become certified, others do not. You should check with your local state tax board. Once you have all of these steps down pat, you are ready to study for the tax return portion of your future job as a preparer. How to become a tax preparer can be a fulfilling and profitable career choice for many tax preparers.