How to Become a Certified and Professional Tax Return Preparer- A Step-by-Step Guide

How do I become a registered tax return preparer? This is a common question among individuals interested in entering the field of tax preparation. As tax laws and regulations are constantly evolving, becoming a registered tax return preparer can be a rewarding career choice. In this article, we will explore the steps and requirements to become a registered tax return preparer in the United States.

1. Understand the role of a tax return preparer

Before diving into the process of becoming a registered tax return preparer, it’s essential to understand the role. Tax return preparers assist individuals and businesses in preparing their tax returns, ensuring compliance with tax laws and regulations. They must have a solid understanding of tax codes, tax forms, and the tax preparation process.

2. Obtain a Preparer Tax Identification Number (PTIN)

To become a registered tax return preparer, you must obtain a Preparer Tax Identification Number (PTIN) from the IRS. This number is required for all tax return preparers, regardless of their experience level. You can apply for a PTIN online through the IRS website.

3. Complete the required education

The IRS mandates that all tax return preparers complete a minimum of 15 hours of continuing education (CE) every three years. This education must include tax law, ethics, and federal tax procedures. You can find approved CE courses through the IRS website or through various tax preparation software providers.

4. Pass the IRS tax return preparer examination

To become a registered tax return preparer, you must pass the IRS tax return preparer examination. This exam covers a wide range of tax topics and is designed to ensure that you have the necessary knowledge to prepare accurate tax returns. The exam is available in English and Spanish and can be taken at various testing centers across the United States.

5. Obtain an Enrolled Agent (EA) or Certified Public Accountant (CPA) designation

While not required, obtaining an Enrolled Agent (EA) or Certified Public Accountant (CPA) designation can enhance your credibility as a tax return preparer. EAs are licensed by the IRS and have unlimited rights to represent taxpayers before the IRS. CPAs are licensed by their state boards of accountancy and have a broader range of skills, including auditing and financial planning.

6. Maintain your PTIN and CE requirements

Once you become a registered tax return preparer, it’s crucial to maintain your PTIN and CE requirements. Failing to do so may result in the suspension or revocation of your PTIN, which can affect your ability to prepare tax returns.

7. Build your tax return preparer business

Finally, to become a successful registered tax return preparer, you’ll need to build your business. This can involve networking, marketing your services, and providing exceptional customer service. As you gain experience and build a reputation for accuracy and reliability, your business will grow.

In conclusion, becoming a registered tax return preparer requires dedication, education, and a solid understanding of tax laws and regulations. By following these steps and maintaining your PTIN and CE requirements, you can establish a successful career in the field of tax preparation.