A professional tax preparer helps taxpayers file their taxes correctly and on time. They also keep up with changes in the tax code and help taxpayers take advantage of any deductions or credits they may be entitled to.
If you are interested in being one, here are the things that you need to do:
Find the Education and Certification Needed
To become a professional tax preparer, you must obtain the necessary education and certification. The first step is to get a bachelor’s degree in accounting or a related field from an accredited college or university.
Once you have obtained your degree, you will need to take the Certified Public Accountant (CPA) exam and pass it with a 75 percent or higher score. After passing the CPA exam, you must obtain a state license by passing the Uniform CPA Examination (UAE).
Research the Requirements
To become a registered tax preparer with the IRS, you must:
- Be at least 18 years old.
- Have a high school diploma or equivalent.
- Pass an IRS-sponsored exam.
- Complete a competency exam or professional credential program.
- Apply to the IRS for a Preparer Tax Identification Number (PTIN).
Once you have met all the requirements and have been issued a PTIN, you can prepare federal tax returns for clients.
Determine What Type of Experience You Need
There is no one-size-fits-all answer to this question, as the type of experience you need to become a professional tax preparer will vary depending on your qualifications and the job’s specific requirements.
However, in general, you will need to have some experience working with taxes to be considered for a position as a professional tax preparer. This could include experience working in a tax office, preparing taxes for individuals or businesses, or even working as a volunteer tax preparer for a local organization.
No matter your specific experience, be sure to highlight it on your resume and during interviews to demonstrate your knowledge and skills in tax preparation.
Pass the Registered Tax Return Preparer Test by the IRS
To become a Registered Tax Return Preparer (RTRP), you must pass an IRS-administered competency test. The test covers fundamental tax law and ethics and demonstrates your ability to complete IRS forms and schedules.
To register for the RTRP test, you must create an account on the IRS website. After logging in, you will be asked to provide your Social Security Number and contact information and select a testing location. Once registered, you can schedule an appointment to take the test.
Apply for a Preparer Tax Identification Number (PTIN)
If you are paid to prepare federal tax returns, you must have a Preparer Tax Identification Number (PTIN) from the IRS. This unique identifier is assigned to you and used on all tax returns you prepare.
You can apply for a PTIN online, by mail, or by fax. To apply online, you must create an account on the IRS website. Once you have created an account, you can log in and complete the online application.
Conclusion
The bottom line is that you must get the proper training and education if you want to be a professional tax preparer. There are many ways to do this, but the most important thing is to ensure that you get an education from an accredited institution.
And to give you more confidence in your work, you can find the best professional tax preparation software to help you. Keystone Tax Solutions provide award-winning professional tax software at the most competitive prices. Contact us now for more details.
