Is becoming a tax preparer right for me?
The first step to choosing a career is to make sure you are actually willing to commit to pursuing the career. You don’t want to waste your time doing something you don’t want to do. If you’re new here, you should read about:
Still unsure if becoming a tax preparer is the right career path? Take the free CareerExplorer career test to find out if this career is right for you. Perhaps you are well-suited to become a tax preparer or another similar career!
Described by our users as being “shockingly accurate”, you might discover careers you haven’t thought of before.
How to become a Tax Preparer
Becoming a tax preparer is a practical way to start a career in finance or accounting, and it can range from handling simple individual returns to managing complex business taxes. Here’s a guide to get started:
- Obtain a High School Diploma or Equivalent: A high school diploma or GED is typically the minimum requirement for entering the field. Strong math and organizational skills are helpful.
- Gain Basic Tax Knowledge: Learn the fundamentals of tax preparation through online courses, workshops, or self-study. Understanding income, deductions, credits, and filing requirements is essential.
- Consider Formal Training or Certification: While not always required, completing a tax preparation course or earning credentials—such as becoming an IRS Registered Tax Return Preparer, Enrolled Agent (EA), or pursuing a related accounting certification—can improve your qualifications and credibility.
- Gain Practical Experience: Start by assisting experienced tax preparers, volunteering at community tax assistance programs, or working at a tax preparation firm to develop hands-on skills.
- Register with the IRS (if required): For paid tax preparers, the IRS requires obtaining a Preparer Tax Identification Number (PTIN). Certain certifications, like EA or CPA, also require registration.
- Develop Key Skills: Build strong attention to detail, analytical thinking, communication skills, and client service abilities. Staying organized is crucial for managing multiple clients and deadlines.
- Stay Updated: Tax laws change frequently, so ongoing education, workshops, and professional resources are essential for maintaining compliance and offering accurate guidance.
- Consider Specialization or Advancement: Over time, you can specialize in areas such as small businesses, self-employed clients, or complex corporate taxes, or advance toward becoming a CPA or tax attorney for higher-level roles.
Certifications
Earning a certification can boost a tax preparer’s credibility, expand the types of services they can offer, and demonstrate expertise in tax law. Several recognized certifications exist for tax professionals in the United States:
- IRS Preparer Tax Identification Number (PTIN): Required for anyone who prepares federal tax returns for compensation. Obtaining a PTIN registers you with the IRS as a paid preparer.
- Enrolled Agent (EA): Authorized by the U.S. Department of the Treasury, EAs can represent taxpayers before the IRS, including audits and appeals. Candidates must pass the Special Enrollment Examination or have relevant IRS experience.
- Certified Public Accountant (CPA): CPAs are licensed by state boards and have completed rigorous education, examination, and experience requirements. They can handle complex tax, accounting, and auditing matters.
- Annual Filing Season Program (AFSP): Offered by the IRS, this voluntary program recognizes non-credentialed tax preparers who complete continuing education and pass a competency test.
- Specialized Certifications: Some professional organizations offer additional credentials, such as the National Association of Tax Professionals (NATP) certifications or the Accreditation in Taxation (AIT) from the Accreditation Council for Accountancy and Taxation (ACAT), which provide advanced training in specific areas of tax preparation.