how can I start an online income tax preparation business wiht RAL and E-file offered?

Answer 1

If you don't already have experience I would strongly suggest that you go work for one of the national franchises for a couple of years. Just jumping is will be a major injustice to your clients. H & R Block has a national policy against doing work on the side but everybody violates that as a means of starting to build a client base (I don't work for them by the way). Others allow you to do outside tax work but will take a very dim view if you take any of their clients. All of the national franchises conduct a "Tax School", which is the best place to start. The $139 to $359 depending on the franchise .

You can use Turbo Tax or the H&R Block's Tax Cut to do as many returns as you like if you don't mind that it violates the license you have to use that product. That does leave you with doing all of your returns on paper but it gets you started for about $70 for software. If you choose ProSeries or Lacerte (the two most popular) and wish to e-file, you will need a EFIN from the IRS which requires you to file a form 8633 at least 6 weeks before the tax season. You can get the form 8633 on line at irs.gov and fill it out on your computer. You will need to call the IRS (1-866-255-0654) and get a finger print card to send along with your form 8633.
Which is the better software depends on your needs and ability.
ProSeries is "interview" based meaning that the program asks question and puts your answers in the correct place. You still can use a "forms mode" or switch back and forth. It does some but not much in the way of customer management if you need that.
Lacerte is "forms" based which in most cases requires that you know what to put in which block. It is therefore faster if you know where to put things and how to do calculations. It does a very complete job of customer management.
Both of these have packages that allow you to pay for e-files as you go and do as little or as many different types of filling as you need. You can start those packages at around $400 and go up into the thousands. Some of those packages also offer RAL type products from the same financial institutions that the national franchises use. You really need to learn more about those products before you try to offer them.

And last but not least the IRS web site and the call centers are your best friend so use them. They offer a great deal of free stuff like forms and publications that are invaluable. (I don't work there either).

Answer 2

Efile can no longer be charged to a customer. if you try to charge for this service IRS will be after you. Efile is now free to everyone. Im not sure about the RAL but Im thinking with all the tax prep software out there, It might not be a lucrative thing. Good luck with your business!!

Answer 3

I have operated my own tax prep business since 1983 and I offer efiling but not RAL.

You need to sign up with the IRS to do efiling and they send your fingerprints to Washington.....Really! So if you have a record, forget it.

Do you have any experience preparing taxes? Usually new clients want to meet you face to face.

I do not do RAL because they are a pain and the Bible forbids charging the usurious interest that places like H&R do.

Answer 4

Be careful using the term "RAL" - - you might be stepping into a copyright infringement if a particular well-known company has the term registered to them.

Answer 5

donno... I have my reserverations to go to a private online tax prep, as they'd know everything about my finances. You at first, need to look into regulations and laws, to see what you are liable for. What if your site get hacked, and your client info are exposed?

Answer 6

I think you should instead go work for HR Block. You can't compete with them.