What it Takes to Become a Professional Tax Preparer

Taxes can be overwhelming which is why there iscoming out, the process has become a much smaller
such a large market for tax preparation services.headache.
There are many different types of tax preparers andHow to Choose
each title has certain requirements that must beWhen there are this many options to have your taxes
maintained in order to establish its position. Below is adone, the hiring process of a preparer becomes a
brief introduction to the different types of taxcontest of who is the most qualified. People will trust
preparers available as well as some general tips onbrands that they see on TV or advertisements, or
what to look for when choosing the right one toperhaps they will seek out an accounting educated
prepare your taxes.individual for advice or expertise.
General Tax PreparerBy obtaining more knowledge on taxes and the
There are several different routes that are taken todifferent requirements that each preparer must go
become a general tax preparer. For larger companiesthrough in order to obtain their designation, you will
like H&R Block or Jackson Hewitt, they willhave a better foundation on which to make your tax
provide their employees with training on how to servepreparation decision when it comes time to hire a tax
customers with their tax needs and how to spotpreparer.
common tax return errors and omissions.Proper Credentials and Liability Coverage
Enrolled AgentAlthough a tax preparer's certifications and awards
Enrolled agents are required by the IRS to have 72are one metric to base your decision on, one of the
hours of professional education every three years tomost important factors is whether or not they are
retain their designation after passing a standardizedcovered with liability insurance.
test.If you're thinking about outsourcing your tax preparation
Certified Public Accountant (CPA)this year, make sure that the preparer is covered with
To become a CPA requires about five years ofreliable insurance. This is a good indication that they
school and a very rigorous test. There are manytake their job seriously and that if there are any errors
different options when it comes to filing your taxesor omissions with your tax documents, that there will
every year and with better software and trainingbe insurance coverage to resolve your dispute.