How to become tax preparer?

Question

Does any one know how to become tax preparer in New Jersey without going to any classes? something where you study on your own and take an exam.

please dont suggest H & R or any other stuff. I am doing that already. i ment something through state not privetized.

And its not about the money. you spend about 6-7 hrs in a class room a week when it can be learned by 2 hrs reading at home.

Answer 1

States have nothing. The IRS can certify you as an enrolled agent if you study and pass their exam. See this link. This does not mean that you work for them. It is similar to being a CPA or attorney to represent taxpayers during audits.

http://www.irs.gov/taxpros/agents/article/0,,id=100710,00.html

Answer 2

There is no specific licensing to become a tax preparer. Basically anyone can hang out a shingle (that's why you have to be careful when selecting a tax preparer). It's helpful if you have an accounting degree/background, but not necessary.

As stated in previous answers, you can become an enrolled agent (it's a certification exam). It is an open exam and THE best way to prepare is to study old exams, which are available at:
http://www.irs.gov/taxpros/agents/article/0,,id=137267,00.html

Added note: You can take & pay for H&R Block's course one time, & then if you work for them all subsequent classes are free (as long a you work for them). OR if you work for H&R Block in a non preparing position (i.e. a receptionist) for one tax season, you can take their class for free the next fall. H&R also has a class to help prepare for the enrolled agent exam. I am assuming this if all the same--it's been a while since I worked for them.

Working at least one season with a prep co. (i.e. H&R Block) provides great experience with taxes & with people. You won't get rich but it's good experience.

Answer 3

You can try to see if you can get a job at IRS, http://jobs.irs.gov/home.html.

However, I wouldn't be too confident with the H&R course yet. There is a lot of advantage to have repetitiveness and a solid understanding of the basic stuffs. If you think it is easy right now, because it is designed that way. Everybody with a brain can do it.

However, the real learning is beyond the surface of entering data into their systems. The repetitiveness helps you remember all the rules so that you will know enough to suggest to your client if he put an extra $200 into an IRA, he will be eligible to take the whole $4000 dollar Tuition and Fees Deduction. And that is the difference between adequate tax preparer versus good tax preparer.

Best wishes.

Answer 4

This is something you really shouldn't try to do without some formal training. There are so many tax laws and many changes each year. You need that training just for all of the laws and how they affect each individual you prepare taxes for. You could be liable for any errors on individual tax returns. The best way to protect yourself and the taxpayers is to get the proper training. I know H&R Block gives classes at a pretty reasonable rate. And if you prepare taxes under their name, if you should prepare taxes for someone that gets audited for whatever reason, you will have H&R Block backing you and standing behind you. Otherwise, you are on your own. I'm sure there are other places you can go besides Block but they are the ones I just happen to know about. You could also try your local vo-tech. Good luck!

Answer 5

I prepare taxes through a volunteer program under AARP and IRS sponsorship every year. They provide training late in the previous year, and have an option where they send you the materials and you study on your own, then take the same test as people who go to classes. Actually, last year they put the classes AND the test online. Even though I was pretty familiar with doing taxes when I first started this, the first couple years I went through the materials on my own and didn't get nearly as much out of them as going to the classes provided. Since then I've gone to the classes every year. It's probably worthwhile to do so.

Answer 6

I don't think that there is such a program. I do know that my father took the H&R Block course about 10 Years ago and is still doing taxes to this day. He loves it and is very knowledgeable about current tax laws.(since he goes to cont. ed. classes every year.) I would say that in order to learn quickly and as cheap and thourough as you can get... go to these classes. It's worth it.

Answer 7

Spend the money and go to the H & R Block school.