Tax Preparer
A tax preparer is someone who calculates, prepares, and files taxes on behalf of others. A tax preparer can work for businesses or individual clients. There are many types of tax preparers as some have credentials issued to them and others don’t. It is not an easy job to do and it requires real attention. It is a very calculative job and requires the utmost concentration. This article talks in detail about how to become an effective preparer.
How to Become an Effective Tax Preparer
To become an effective tax preparer, you should study the proper tax-related courses. An effective preparer needs to have a strong foundation. First, an effective preparer needs to be strong in mathematics. The work involving taxes requires a lot of careful calculation. Although, a bachelor’s degree is not required for this job, you can become an effective preparer even with a high school diploma. The effective preparer needs to be very skilled with computers. In college, you can choose a degree as a tax attorney, EA, etc. This job can be high paying.
An effective tax preparer needs to take a tax preparation course. Moreover, these tax preparation courses fill an individual with information. This information is essential for anyone becoming a tax preparer. This helps individuals understand the real-world functioning of taxes. These courses fill in the blank spaces left by general degrees or information. However, these courses help give out the minute details of tax preparations. They help prepare you for the outside world.
Prepare Tax Identification Number
An integral part of becoming a preparer is to get a Preparer Tax Identification Number. This PTIN issued by the IRS and it is important. Without this, a person is not allowed to practice the profession. This PTIN is easy to obtain and it requires filling out an application. Information that needs to be given will be the name of the applicant, address, age, etc. One will also need to explain if they have a criminal record or any wrongdoings. Though these things won’t exactly disqualify an individual from a PTIN, they may stall the process.
Once an individual gets PTIN, they are registered under the IRS and can practice preparing taxes. If an individual wishes to establish their firm, they then need to get an EFIN. This EFIN stands for Electronic Filing Identification Number from the IRS. This number gives your company the ability to e-file tax returns.
Register
Individuals are also required to register in their state. A non-credential tax preparer needs a license and needs to be registered to practice in states like California, New York, Oregon, etc. which require more specific details to be checked. The amount of training required to become a practicing preparer may also differ depending on different states. These details need to be kept in mind while planning to become a tax preparer.
The last and perhaps the most important point that needs to be considered is experience. An individual needs to be well-experienced in the field of tax preparation to become an effective tax preparer. This job should not be taken lightly, since a lot of individuals depend on tax preparers to handle their money.
