Tax preparation is a career that is on the rise and brings a necessary and welcome service to the community.

But how do you become a tax preparer? What sort of qualifications are needed? What tools are available to make you more productive? And what does a tax preparer do on a day-to-day basis?

What does a tax preparer do?

Most tax preparers prepare, file, or assist with Certified Public Accountant general tax forms. Beyond these basic services, a tax preparer can also defend a taxpayer with the IRS. This includes audits and tax court issues. However, the extent of what a tax preparer can do is based on their credentials and whether they have representation rights.

In a way, tax preparers are asked to serve two masters – their clients and the IRS. They must assist their clients in complying with the state and federal tax codes, while simultaneously minimizing the client’s tax burden. While they are hired to serve their client, they must also diligently remember their obligation to the IRS and not break any laws or help others file a fraudulent return.

What do you need to become a tax preparer?

Becoming a tax preparer is a straightforward process involving a few basic requirements.

These include:

Know-how. For most new tax preparers, learning the ins and outs of the business means acquiring an entirely new professional language. In some cases, this know-how comes in the form of certification. But finding a platform that can boost know-how and assist you with knowledge gaps is critical to success.

Technology. As is the case with most professions, having access to the right technology will help you work efficiently and contributes to the general success of your new business. Most tax professional software assists with both know-how and the tools to accomplish the work itself.

Clients. This might seem obvious, but you need to attract tax clients to succeed and become profitable. Many preparers start on a small scale – doing individual returns – before moving on to bigger and more complicated matters.

Preparer Tax Identification Number. If you want to be paid for preparing tax returns, the first step is applying for – and being issued – a preparer tax identification number (PTIN).

What exactly is IRS tax preparer certification?

The basic IRS requirement for all paid tax preparers is to pass the suitability check and get issued a PTIN. However, once you start talking about the work of an enrolled agent, there will be additional requirements such as a state license or an electronic filing identification numbers (EFIN).

How do you get a PTIN?

This process begins on the IRS website and requires annual renewal. However, there is no fee for either the initial registration process or the renewal.