How to Kickstart Your Tax Preparation Business

Did you know that the IRS processed more than 260 million tax returns in 2021?

If you have an accounting background and you enjoy working as a tax preparer, then you’re in a prime position to start your own tax preparation business.

Having skills in accounting makes you valuable as many people don’t have the knowledge or the patience to learn how to become a tax preparer.

Starting your own tax preparation business might sound intimidating on the surface, but it’s an opportunity to become your own boss and have a flexible schedule while making good money.

The good news is that you’re in the right place to learn all about how to get your tax preparation business up and running.

Keep reading to learn more today!

Get Your GED

If you haven’t already, you’ll need to get your high school diploma or GED in order to start your career as a professional tax preparer.

You don’t need to have a college degree in order to handle business tax preparation, though being able to put that on your resume could make you more competitive when you start applying for jobs.

Get Training

You’ll want to take some time to train at a vocational school or community college to hone your skills as a tax preparer.

Choosing to take a tax preparation course will ensure that you have the knowledge necessary to handle business tax preparation.

Make sure that you learn about filing status, taxpayer interviews, your state’s tax codes, how to calculate refunds, and the different types of tax forms.

Having all of that knowledge will make starting a tax preparation business a breeze.

Get Your ID Number

Another step toward starting a tax preparation business is getting a Preparer Tax Identification Number. This step involves filling out an application with the IRS.

It includes your personal information like your name and social security number. Once your application is approved, you can start filing basic customer tax returns.

Get a Tax Preparer License

The last step of getting your tax preparation business up and running is getting your tax preparer license in your state.

States like California, Oregon, New York, and Nevada require you to get a state license in addition to the PTIN that you receive from the IRS.

California asks you to take 20 hours of continued training each year to maintain your license. It’s always a good idea to check requirements with your state before starting your business.

Start Your Tax Preparation Business Today!

Now that you know the requirements for starting a tax preparation business, there is nothing left to do but take the plunge.

Make sure that you get licensed as a tax preparer with the IRS. It’s also wise to check with your state to see if they have any requirements before getting started.

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