You can make a lot of money in the tax preparation business. In fact, when comparing time, effort, and money, a professional tax preparer is capable of generating more income in a quicker period of time than most other career fields.
During the U.S. ‘tax season’, working on a handful of clients an evening can easily turn into tens of thousands of dollars in three months’ time. You can earn even more if you operate as a full-time gig. Especially if you accept business clients for year-round tax services.
Need more convincing? Read this article next: Seven Reasons To Consider A Career In Tax Preparation.
…While you’re here, don’t forget to register for my FREE online Masterclass training, ‘Teach Me The Tax Game’ and learn how to increase your income as a professional tax preparer, and potentially make $100K in just 90 days!
How To Become A Professional Tax Preparer
Becoming a professional tax preparer is easier than you may think. It doesn’t require a lengthy college degree or expensive training. As long as you have basic math and accounting skills, that’s half the battle won.
As for the rest of the process, it can be broken down into five easy steps.
1: Generate Your PTIN
A Preparer Tax Identification Number or PTIN is something that all tax preparers are required to have if they charge money for their tax preparation services. It’s easy to get and the best part—it has no educational requirements. It’s as simple as visiting the IRS website and applying—all you need is 15 minutes and a good internet connection. Alternatively, you can also apply for your PTIN by filling out and mailing in a W-12 Form.
2: Request An EFIN
If you plan on starting a virtual tax preparation business and filing returns electronically, the IRS requires that you register for an EFIN or Electronic Filing Identification Number.
Again, it’s a base that can be covered swiftly on the IRS website.
Oh, and don’t forget, you’ll also need to supply your fingerprints to the IRS unless, of course, you’ve already done that when you became something like an attorney or certified public accountant (CPA).
Next, expect to receive your EFIN in approximately 45 days, give or take.
3: Register Your Tax Preparation Business With Your State
It’s important to keep in mind that every state has different laws and requirements regarding professional tax preparers. Depending on where you choose to work, you may or may not need to register. Always double-check your state’s specific guidelines before you start accepting any customers.
4: Work In For An Established Tax Prep Service
In the beginning stages of any job, you’re just trying to find your footing and learn the ropes. One thing that could help you do this as a tax preparer is by working briefly for an already established tax preparation business. Not only will you be able to have important questions answered, but you’ll also gain valuable experience and insights into the tax industry as a whole. Including the local and state requirements where you’re planning on starting your own virtual or brick-and-mortar tax preparation company.
5: Choose Your Tax Preparation Software Program
Just like anything else, every tax professional is different. Depending on your experience in the tax industry or education, you may need certain features from your tax prep software. When looking for the right one, consider what you need out of it.
- How much tax filing assistance and support is included in the subscription?
- Is it cloud-based software?
- Is the software intuitive?
- Can it help you gain experience and maximize your profits?
- Can it be installed on your desktop computer?
- Is it compatible with your computer’s operating system? (Mac or Windows)
Asking these questions is important and can help you decide which tax preparation software is right for you.
Ready To Start Your Own Tax Preparation Business?
Starting a tax business can be scary, but if it’s done right, it can also be exceptionally rewarding. If you’ve been thinking about a career in the tax industry, I can show you how to succeed. For over a decade I’ve been helping entrepreneurs across the country make money in this exciting field, and I can help you too!
I’m ready when you are. Contact my team to learn more. Or visit The Wealth Connect where you’ll find countless resources designed to help entrepreneurs like you create businesses, make money, and build generational wealth.
…Don’t forget to register for my FREE online training, ‘Teach Me The Tax Game’ and learn how to become a professional tax preparer, and make $100K in just 90 days!