While taxes are often regarded as a necessary evil for many or a hassle at the very least, on the other side of the fence, it also holds plenty of opportunities worth exploring. With that, there are many benefits to becoming a tax preparer, including the ability to work independently, flexible work hours, and the potential to earn a good income.
Becoming a tax preparer can also be a great way to get your foot in the door of the accounting and finance world. Many tax preparers start their careers as interns or entry-level employees at accounting firms and become full-time tax preparers down the line.
Either way, aspiring tax preparers often have many questions about the profession, and understandably so, as you’re entering one of the most complex industries in the world.
With that in mind, here are some answers to common questions that may help you better understand the field of tax preparation:
FAQs About Becoming a Tax Preparer
1. What Education Do I Need to Qualify for a Tax Preparer Career?
There is no specific educational requirement to become a tax preparer. However, most tax preparers have at least a high school diploma or equivalent. Some tax preparers may have completed some college coursework, although this is not always necessary.
There are higher-level credentials that are helpful in the tax industry, such as the Chartered Tax Professional Certificate Program and the Enrolled Agent designation, but they’re not necessarily required.
2. How Long Will It Take to Become a Tax Preparer?
So how long does it take to become a tax preparer? The answer depends on a few factors, including your previous experience and education, as well as the type of training you receive. However, in most cases, you can complete the necessary training to become a tax preparer in as little as ten weeks, if you can manage to squeeze in two lessons weekly.
In that regard, there are a number of different ways to complete a tax preparation course, but the most convenient way is to take an online course.
3. Do I Need to Pass a Licensure Exam to Become a Tax Preparer?
There is no licensure exam required to become a tax preparer in the United States. However, some states have certification requirements. However, there are some standards set by the IRS, that’s the Annual Filing Season Program (AFSP). This is a voluntary program that recognizes non-credentialed tax preparers who aspire to a higher level of professionalism.
4. What are the Basic Requirements I Need?
To become a tax preparer, you will need to take a top-quality, beginner tax preparation course. You will also need to obtain a Preparer Tax Identification Number (PTIN) from the IRS. In addition, you should check with your state to see if there are any additional requirements for tax preparers.
Continuing your education is also essential, as tax laws are always changing. By staying up-to-date on the latest tax laws, you can ensure that your clients are getting the best possible advice.
The Bottom Line: Learning What It Takes to Become a Tax Preparer
Becoming a tax preparer can be a great way to start a new career. It can be a challenging and rewarding profession, and it can provide you with the opportunity to help others with their financial needs. However, becoming a tax preparer is not a decision to be made lightly, so just like with any career, it’s crucial to do your research on your dream industry before taking the plunge.
Are you looking for a tax software for preparers? If so, you’ve come to the right place. At Keystone Tax Solutions, we offer a variety of tax software products that can meet the needs of any preparer. Whether you’re looking for simple return preparation software or a more sophisticated product that can handle complex returns, we have a solution that’s right for you.
