If you are interested in becoming a tax preparer in California, then this is the right place for you to start your journey. Here you will find all information about the California Nonresident preparer exam.
how to become a california tax preparer
Did you know that millions of tax payers in California choose to file their taxes with a professional? This means that there’s a lot of cash up for grabs for anyone who’s looking to get involved in this booming industry. If you’ve considered a career as a tax preparer and have gone down the path to getting your CPA license, you’ll know how tough it can be.
- Enroll in tax course (beginner and/or advanced tax courses)
- Read the New Rules for Federal Tax Return Preparers
- Purchase and read The Income Tax School’s Tax Practice Management Manuals
- Joining our LinkedIn group to interact with other tax professionals and stay on top of industry news: Tax Business Owners of America (TBOA)
- Consider joining the National Association of Tax Professionals (NATP)
- Register with the IRS as a Tax Preparer – Get Your Preparer Tax Identification Number (PTIN)
- Apply for IRS Electronic Filing Identification Number (EFIN) so you can e-file tax returns. Before you can electronically file tax returns, you must apply to become an Authorized e-file provider with the IRS. This process is facilitated by the IRS in three phases:
- Phase 1: Create an IRS e-services Account – Before you can begin the application process, you must apply and be approved for an e-services account with the IRS. The IRS may take several days to verify and approve your information, so it is important to plan accordingly.
- Phase 2: Submit Your Application – After you are approved for e-services, you will be able to log into your account to fill out the online application to become an IRS e-file provider. Plan accordingly as it may take up to 45 days for the IRS to approve an Authorized e-file Provider application.
- Phase 3: Pass a Suitability Check – After you submit your application and any related documents, the IRS will conduct a suitability check on the firm and each person listed on your application as either a principal or responsible official. This may include: a credit check; a tax compliance check; a criminal background check; and a check for prior non-compliance with IRS e-file requirements. Once approved, you will get an acceptance letter from the IRS with your Electronic Filing Identification Number (EFIN).
- Order tax preparer software
So there you have it—your guide to the process of becoming a California tax preparer. Chances are, you may still have plenty of questions left unanswered, but hopefully this information can point you in the right direction as you navigate this ever-changing career. The most important thing to take from all these is: if it’s something you’d love to do, go for it!
