How To Get Your Tax Preparer's License

New standards for paid tax preparers are now being considered, like requiring them to be licensed.

As a tax preparer your job is to prepare both national and local returns for either an individual or a company. They also settle the right net income to be reported to the government. Qualification for licensing depends on each local place, so you need to check out your local agency. But here are some vital steps.

Inquire for the specific requirements of your local place since requirements differ from one place to another. Some of the basic requirements are a school diplomas, must be 18 years old and above, and completion of a tax-preparation program for training credit.

To start, classes can be taken either at a regular classroom or online.

Enrolling in a tax preparation company can help you to get the education needed to be a tax preparer. You need to complete a free course that they offer. These programs are offered most commonly by these companies:

  • H&R Block
  • Jackson Hewitt

Most of the programs available on these companies are two to three months long. There are certain times of the year when these courses are most likely offered.

You can also acquire similar education through online tax schools. You can easily site these programs by searching the internet. If you're interested you can contact these organizations directly for complete information on the training programs they offer.

  • Taking the tests and passing them is an essential. Every course or school will have testing arrangement of their own. You need to pass the examination with a certain percentage to get the certification from your school. The difficulty of the exam will largely depend on the school. You need the certificate proving you completed the course work when applying for a license..
  • Apply for a business license. If for example your state does not require you to have a licensed for preparing taxes, still you a need a license for running a business. Thoroughly finish all business license paperwork. Collect all the needed information to fill each license requirement. It may be required that you put your personal and corporate financial documents if you have them and a business diagram if you've used one, in your application. Be precise in completing each page. After completing each single requirement send your application to the appropriate office. When you're done with all the requirements get a copy of the tax preparer license application from the Local Board of Tax Practitioners (if applicable). Carefully complete each section. If needed attach educational documents such as copy of your school diplomas, training course certificate and evidence that you passed the tax preparer's examination and send your application to the licensing board. Wait to receive your license. Once the license is obtained, the tax preparer will need to join professional organizations to keep him updated. Laws regarding taxes change from time to time, and it is required to have many hours of continuing education to keep the tax preparer's license.



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