What does an Income Tax Preparer do?
Published 3 min read
An income tax preparer is a professional who helps taxpayers file their annual income tax return. This person may work for a tax preparation firm, or they may be self-employed.
Income Tax Preparer job duties include:
- Meet with clients to discuss their tax needs.
- Prepare and file federal, state, and local tax returns.
- Research tax laws to ensure compliance with regulations.
- Identify opportunities for clients to maximize their tax benefits.
- Stay current on changes in tax laws and regulations.
- Keep abreast of new developments in the field of income tax preparation.
- Train staff on new tax laws and regulations.
- Assist clients with audits conducted by the IRS or other tax authorities.
Income Tax Preparer Job Requirements
In order to become an Income Tax Preparer, one must have at least a high school diploma. However, many employers prefer candidates who have completed some college coursework or have an associate’s degree. There are also a number of certification programs that tax preparers can take to demonstrate their proficiency in the field. Many tax preparers also have several years of experience working with individual and business tax returns.
Income Tax Preparer Skills
- Income tax law
- Accounting
- Bookkeeping
- Calculating taxes
- Filing taxes
- Tax preparation software
- Communication
- Organization
- Attention to detail
- Problem solving
- Time management
Related: Top Income Tax Preparer Skills: Definition and Examples
How to become an Income Tax Preparer
If you want to become an income tax preparer, there are a few things you need to know. First, you'll need to have a strong understanding of tax law. This includes knowing how to file different types of tax returns and being up-to-date on any changes in the law. You'll also need to be good with numbers and have excellent attention to detail.
Once you have the necessary skills, you can start your own tax preparation business or work for an existing firm. To get started, you'll need to obtain a Preparer Tax Identification Number (PTIN) from the IRS. Once you have your PTIN, you can begin advertising your services and meeting with clients.
To be successful as an income tax preparer, you need to be organized, efficient, and knowledgeable. By keeping up with changes in the tax law and staying on top of your clients' needs, you can ensure that they're getting the best possible service - and that their taxes are filed correctly.
Related: Income Tax Preparer Resume Example
Related: Income Tax Preparer Interview Questions (With Example Answers)