Thinking about
becoming a Tax Preparer?

Many people mistakenly believe that it requires an accounting degree or another type of educational achievement to become a professional tax preparer. You'd be surprised to know that the IRS isn’t overly strict about who can become a Tax Preparer.

For the most part if you can successfully obtain an IRS Preparer Tax Identification Number (aka PTIN), you may prepare federal tax returns for clients and get paid for your work, knowledge, and time.

WHO CAN BE A PROFESSIONAL TAX PREPARER?

According to the IRS:
Any tax professional with an IRS Preparer Tax Identification Number (PTIN) is authorized to prepare federal tax returns. However, tax professionals have differing levels of skills, education, and expertise.

There are only 2 groups of Tax Professionals

The primary difference between the different types of Income Tax Professionals is their representation rights before the IRS beyond the preparation of tax forms. Tax professionals either have Unlimited Representation Rights or Limited Representation Rights.

Typically called: PTIN, ERO, CPA, EA, or Tax Attorney

Tax Preparers With Limited Representation Rights Before the IRS

PTIN Holders - Paid Tax Identification Number
AFSP - Annual Filing Season Participant

Limited Representation Rights: Annual Filing Season Participants are preparers whom have limited practice rights. They may only represent clients whose returns they prepared and signed, but only before revenue agents, customer service representatives, and similar IRS employees, including the Taxpayer Advocate Service.

Tax Preparers With Unlimited Representation Rights Before the IRS

Enrolled Agents
Licensed certified Public Accountants
Licensed Attorneys

Unlimited Representation Rights: Enrolled agents, certified public accountants, and attorneys have unlimited representation rights before the IRS. These Tax Professionals may represent any client on any matters including audits, payment/collection issues, and appeals.

PTIN

PTIN Holders (non-credentialed tax preparers)

Individuals with an active Preparer Tax Identification Number from the IRS are authorizes to complete Individual, Non-Profit, Small Business, and Corporate Income Tax returns.
Preparation for compensation does not automatically mean electronically file. You can however, work for or with a company that has electronic filing authorization.
They have no authority to represent clients before the IRS (except regarding returns they prepared and filed December 31, 2015, and prior).
Can pass a suitability check to become an EFIN holder, which includes fingerprinting and a background check to electronically sign tax returns.

AFSP

AFSP (Annual Filing Season Participant)

Beginning with returns filed after December 31, 2015, only Annual Filing Season Program participants have limited practice rights. Learn more about this program.
Preparers who have gone through the IRS’s voluntary recognition program designed to help non-credential tax return preparers to achieve a higher level of professionalism will earn this title.
It was designed to encourage education and filing season readiness by requiring a 3-hour 100 question test and 18 Continued Education hours to qualify.
The IRS issues an Annual Filing Season Program Record of Completion to return preparers who obtain a certain number of continuing education hours in preparation for a specific tax year.
These tax professionals may represent their own tax clients on matters that they were aware of when they completed that return.
They cannot speak to the IRS on any client that they did not materially participate in.
These individuals may only represent clients whose returns they have prepared and signed.

EFIN

EFIN Holders (Electronic Filing Identification Number)

EFIN holders are subject to a suitability check, background check, and FBI fingerprinting in order to receive clearance. Once cleared they will receive a 5 digit number which allows for them to eFile as well as, purchase professional tax software without the assistance of another company.
On September 25, 2022, the IRS implemented a new electronic fingerprinting process for those who do not provide professional status information.
Each new Principal and Responsible Official listed on a new e-file application, or added to an existing application, is required to schedule an appointment with Fieldprint®, the IRS authorized vendor.
There is no cost and no annual renewals for EFIN holders.

Enrolled Agents (credentialed tax preparers)

Licensed by the IRS. Enrolled agents are subject to a suitability check and must pass a three-part Special Enrollment Examination, which is a comprehensive exam that requires them to demonstrate proficiency in federal tax planning, individual and business tax return preparation, and representation.
They must complete 72 hours of continuing education every 3 years. Learn more about the Enrolled Agent Program.

CPA

Licensed by state boards of accountancy, the District of Columbia, and U.S. territories. Certified public accountants have passed the Uniform CPA Examination.
They have completed a study in accounting at a college or university and also met experience and good character requirements established by their respective boards of accountancy.
In addition, CPAs must comply with ethical requirements and complete specified levels of continuing education in order to maintain an active CPA license.
CPAs may offer a range of services; some CPAs specialize in tax preparation and planning.

Attorneys

Licensed by state courts, the District of Columbia or their designees, such as the state bar.
Generally, they have earned a degree in law and passed a bar exam. Attorneys generally have on-going continuing education and professional character standards.
Tax Attorneys specialize in tax preparation and planning.

ptin?

What Is a PTIN?

A Preparer Tax Identification Number (PTIN) must be obtained by all tax professionals who prepare all or substantially all of a federal tax return for compensation. It’s a unique nine-digit number that enables the IRS to identify who the professional preparer is who helped a taxpayer prepare and file their income tax return.

The IRS issues PTINs for a fee ranging from $0-$56 depending on the year. Because PTINs expire on December 31 of the year in which they are obtained, tax preparers must renew them annually. Generally, individuals must provide their social security number when requesting a PTIN from the IRS. Applicants who apply online can obtain a PTIN in about 15 minutes.

Currently $19.75
Received in 15 minutes online
Must order before 12/31 @ 11:59est
IRS.gov

order your ptin here

The IRS estimates it will take between four to six weeks to obtain a PTIN if submitting Form W-12 (IRS Paid Preparer Tax Identification Number Application and Renewal) by mail.

how will i get paid?

Work for a Business or Start Your Own

Working for an Established Tax Business

When you think about Tax offices I am sure many of the big box brands come to mind like HR Block and Jackson Hewitt, however there are hundreds of tax firms to choose from. If you would like to get started in the field with the bare minimum, working for a tax business will save you money on Tax Law training, software, and promotions. You can feel confident with knowing your income has been pre-determined to know what you are worth for the year as long as you show up and help.

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Average pay $16 hr - $22 hr
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Low Season $8,960
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High Season $12,320
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Based on working 35 hours per week for 4 months

Working for Yourself

Majority of Tax Professionals enjoy the feeling of control over their income and time and working for yourself offers that flexibility and freedom. Because most of the work is seasonal you will learn new tax laws, understand situational tax strategies through practice. You can get started for as little as $100 and that may include obtaining software, securing marketing, and creating a payment structure depending on how expansive you want your business. You can file returns for families, students, non-profits, or businesses.
You will feel empowered knowing your income has no limits and as long as you provide great work to your clients, they will help you by sending referrals.

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Average tax return $225 - $400
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Low Season $10,800
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High Season $19,200
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Based on filing 3 Individual returns each week for 4 months

GEt STARTED ON TAX LAWS

IRS Directory of Federal Tax Return Preparers

To help taxpayers determine return preparer credentials and qualifications, the IRS has a public directory containing certain tax professionals. This directory is searchable, sortable database includes the name, city, state, and zip code of attorneys, CPAs, enrolled agents, enrolled retirement plan agents, and enrolled actuaries with valid PTINs for 2023, as well as Annual Filing Season Program Record of Completion recipients.

GET LISTED

Tax Business Basics Steps

Learn Tax Laws	Choose a Business Name	Register Your Business Name	Obtain an EIN
Open a Business Bank Account	Apply For Licenses & Permits	Obtain an EFIN	Purchase Tax Software
Create a Data Security Plan	Purchase Business Insurance	Create a Marketing Plan	Create a Compliance Plan

Download the steps in an eBook

Tax Season

While thinking about critical Tax Dates do you know what each of these dates represent? If you do, you are already ahead of the curve to knowing the Steps to Becoming a Tax Preparer.

Tip: Use this question/prompt in a Social Media post and get your audience to engage with you.

3

January

15

April

16

October

31

December

LEARN HOW TO CREATE A TAX BUSINESS FOR LESS THAN $100

Although the information from deciding a business name to establishing data security protocals for IRS compliance is available on this site - you may need it to print or deliver to others in a PDF or print format.

Thinking about
becoming a Tax Preparer?

WHO CAN BE A PROFESSIONAL TAX PREPARER?

Typically called: PTIN, ERO, CPA, EA, or Tax Attorney

Tax Preparers With Limited Representation Rights Before the IRS

Tax Preparers With Unlimited Representation Rights Before the IRS

ptin?

What Is a PTIN?

how will i get paid?

Work for a Business or Start Your Own

IRS Directory of Federal Tax Return Preparers

Tax Business Basics Steps

Tax Season

While thinking about critical Tax Dates do you know what each of these dates represent? If you do, you are already ahead of the curve to knowing the Steps to Becoming a Tax Preparer.

3

January

15

April

16

October

31

December

IRS PTIN Credentials

IRS EA Credentials

Tax Law Courses

LEARN HOW TO CREATE A TAX BUSINESS FOR LESS THAN $100

Thinking about becoming a Tax Preparer?

WHO CAN BE A PROFESSIONAL TAX PREPARER?

Typically called: PTIN, ERO, CPA, EA, or Tax Attorney

Tax Preparers With Limited Representation Rights Before the IRS

Tax Preparers With Unlimited Representation Rights Before the IRS

ptin?

What Is a PTIN?

how will i get paid?

Work for a Business or Start Your Own

IRS Directory of Federal Tax Return Preparers

Tax Business Basics Steps

Tax Season

While thinking about critical Tax Dates do you know what each of these dates represent? If you do, you are already ahead of the curve to knowing the Steps to Becoming a Tax Preparer.

3

January

15

April

16

October

31

December

IRS PTIN Credentials

IRS EA Credentials

Tax Law Courses

LEARN HOW TO CREATE A TAX BUSINESS FOR LESS THAN $100

Thinking about
becoming a Tax Preparer?