What does a Tax Preparer do?
Published 3 min read
A tax preparer is a professional who helps taxpayers file their annual tax returns. Tax preparers typically have a background in accounting or tax law, and they use their knowledge to help taxpayers save money on their taxes.
Tax Preparer job duties include:
- Determines which forms to file by researching tax law.
- Gathers information by reviewing financial records.
- Identifies potential tax credits and deductions.
- Calculates taxes owed or refunds due, using tax preparation software.
- Prepares tax returns, ensuring accuracy and compliance with tax laws.
- E-files or files paper returns with the appropriate tax authority.
- Advises clients on payment options and deadlines.
- Keeps abreast of changes in tax laws and regulations.
- May provide other financial services, such as bookkeeping or payroll processing.
Tax Preparer Job Requirements
There are no formal education requirements for tax preparers, but most have at least a high school diploma. Some states require tax preparers to take continuing education courses and pass a competency exam. The IRS requires all paid tax preparers to have a Preparer Tax Identification Number (PTIN). Many tax preparers are certified by the IRS as either Enrolled Agents or Registered Tax Return Preparers. Some states have additional certification requirements. Tax preparers typically have experience working with taxes and keeping up with the ever-changing tax code.
Tax Preparer Skills
- Tax law
- Organizational skills
- Time management
- Communication
- Math
- Research
- Writing
- Critical thinking
- Detail oriented
- Computer skills
- Interpersonal skills
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How to become a Tax Preparer
There are a few steps you can take to become a tax preparer. First, you'll need to have a strong understanding of tax law and regulations. You can gain this knowledge by taking courses at a community college or online. Once you have a firm grasp on tax law, you'll need to get certified by the IRS. To do this, you must pass an exam and complete a few other requirements. After you're certified, you can start your own tax preparation business or work for an existing one.
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