I’m a bookkeeper and I’m wondering what training or certification I need, other than becoming a CPA or EA, to begin doing individual and small business tax returns?

[solcarmona]

I own a small bookkeeping business and many of my clients have asked me to do their federal tax returns.  I use Quickbooks Online Accountant  so I’ve been looking into ProConnect as my next logical step.  

I’d like to know what the  1) minimum qualifications or certification are to become a tax preparer and 2) recommendations on online courses to get the certification, and 3) any other input or advice on getting started on tax prep from scratch.

Thanks

[itonewbie · Accepted solution]

Rather than focusing on credentials at this point, you should get some practical experience working with a good mentor with strong technical skills (beyond being to read and understand a Pub) so that you could learn the ropes of the trade.

You will learn a lot from the review notes you [should] receive, if you pay attention to them, and understanding the statutes, regulations, and case law is what will enable you to stand on your own two feet over time.

While you're at it, devote a couple hours each day over a number of months to prepare for whatever exam you plan to take to earn the credential of your choice.

There's no minimum qualification per se.  Anyone can be a preparer.  But if you're not an attorney, CPA, enrolled agent, enrolled retirement plan agent, or enrolled actuary, your rights to practice and represent will be limited.  You can read more about this here: https://www.irs.gov/publications/p947#en_US_201709_publink1000148603

Whatever credential you decide to pursue, this is a good resource for learning taxes: https://www.gleim.com/enrolled-agent-review/

[solcarmona]

Thanks this is great info but where would I find a good mentor?

[itonewbie]

@George4Tacks has some very good suggestions.

[George4Tacks]

Look locally to work part time. 

Also check to see if your state has requirements to even touch a tax return. 

California has CTEC https://www.ctec.org/ 

Oregon has several restrictions https://www.oregon.gov/obtp/Pages/ExamRequirements.aspx

IRS has a PTIN requirement  https://www.irs.gov/tax-professionals/ptin-requirements-for-tax-return-preparers and AFSP https://www.irs.gov/tax-professionals/annual-filing-season-program

You can load up on free hours at https://www.cpaacademy.org/ and through Intuit https://proconnect.intuit.com/training/tax-online/

[sschultz]

Here is a good link that can help you out on becoming a non- credentialed tax preparer. Right now the IRS does not regulate tax preparers, however there is a bill trying to pass in the government that would require tax preparers to meet certain minimum qualifications. 

They leave the states to regulate tax preparers. So depending on your state would determine how much work you would have to do.

 However without being a CPA or EA you can not represent your clients in any dispute with IRS. That means that many clients will want to go with someone who is certified as they have no protection under non-credentialed preparers. 

You can also work for a CPA or under them and be able to prep taxes however most of them require you to have at least a BS in accounting. If you find a mentor that would help as a lot goes into taxes and many laws; after taking classes on taxes, preparing individual taxes  and getting my BS I realized how little I actually knew about taxes when I started working for a CPA firm. This industry you will constantly have to learn and spend time on education no matter how long you been in the business. 

https://www.microsoft.com/en-us/microsoft-365/growth-center/resources/how-to-become-a-tax-preparer