How to Become a Louisville Tax Preparer and Its Benefits
Posted by Rushell Kayna on May 26th, 2021
A tax preparer does the tax preparation process by doing all the work of tax returns, income tax returns for an individual or an organization. There are many online software and services through which you can do your tax preparation in Louisville. The tax preparation can also be done by licensed individuals such as a tax preparer, a CPA, or an experienced agent and have been doing the tax work for some time. This blog will explain how to become a tax preparer and the benefits of being a tax preparer.
1. Types of tax preparers?
There are mainly two main types of tax preparers and are certified and non-certified tax preparers. These tax preparers ensure that their client's tax is fully paid, and they check all the documents before filing for tax. If there are any issues, then they also represent their clients in front of the IRS. following are the different types of tax preparers: -
- Unlimited representation rights: - as the name suggests, these tax preparers have unlimited representation rights and can audit for you in front of the IRS.
- Enrolled agents: - these tax preparers need to pass a tough examination and do 72 hours of professional development work every three years.
- Certified public accountants: - CPAs are different from normal accountants. They are more experienced and handle bigger clients with ease. They need to pass the Uniform CPA exam to become a CPA.
- Tax attorney: - tax attorneys can write the bar exam and become CPAs later on in their career. Some tax attorneys gain experience by working as an intern in big companies or specializing in tax work.
- Limited representation rights: - as the name suggests, these tax preparers have limited representation. They can file their client's tax returns but cannot represent them in the future. People working in tax preparation companies often have limited representation rights.
- Prepare tax identification number holders: - it is the basic and minimum federal requirement needed to file any tax returns. All the types of tax preparers mentioned above need to have a PTIN, and you can request a PTIN from the IRS as soon as possible.
2. How to become a tax preparer?
Becoming a tax preparer requires hard work and dedication, and it is not an easy process. It would help if you studied the law in-depth and be updated with the current trends and law changes in tax. Becoming a tax preparer is a three-step process, and they are: -
- The students need to complete the basic tax preparation course (BTP) or the tax school aptitude test (TSAT). Once the students have completed the test, they can start their learning of laws and, most importantly, tax laws. The BTP is a 60-70 hours course that you can complete on your own with the help of an online instructor. The instructor is experienced in tax preparations and will help you guide you through the process. Once the students have completed the course, they start applying for a tax preparer position.
- Once they have completed the test, it is important to obtain a preparer tax identification number (PTIN). The PTIN is issued by the IRS and will cost you around to get the number. The amount is usually reimbursed once you get a job as a tax preparer.
- Once you have got the PTIN, then the final process of getting your background checks done. Once the committee sees no issue in your application, then you're approved for the tax preparer, and then you're eligible to become a tax preparer.
3. Advantages of becoming a tax preparer
Being a tax preparer, you get many benefits and advantages throughout your career that you can look forward to. You get some of these benefits as soon as you enter the tax preparation business. In contrast, once you become an experienced tax preparer, the benefits increase and become more exciting. Following are some of the advantages of choosing a career in tax preparation Louisville: -
- Your job is secured for life: - since people pay taxes every year, there is very little chance for you to be unemployed for long. If you're very good at your job, there will be no chances as nearly half the US population files tax returns. They need proper guidance and expert help to get the job done easily. With some changes in the tax laws, there are chances that you might want to help people who got their taxes filed.
- You're paid very well: - salaries of CPA and authorized agents of taxes are sky-rocketing. If you're an experienced tax preparer, then even non-certified tax preparers can get good hourly-based salaries for their knowledge. You can get the most of the salaries if you're also resigning in one of the biggest metropolitan cities.
- Your job timings are flexible: - since Americans have time till April 15 to pay the taxes, the tax preparer only gets busy during the last two or three months. The rest of the time, they get to spend their time either engaging in personal hobbies or professional growth of other careers. They also help people in need during other times of the year.
- You can earn for your entire life: - with frequent and subtle changes in the tax laws, the professionals who are experienced and talented can earn for the rest of their life. The job of a tax preparer cannot become obsolete as people need help from professionals to pay their taxes.
You can get good tax preparation Louisville from professionals from Strothman + CO.