Resources - Egocheaga Tax & Services LLC

A professional tax preparer must complete individual and corporate tax returns in a timely and accurate manner to maintain a consistent client base these are the tax tips to use!

Without a sufficient understanding of tax laws and creative strategies to save customers money on their annual tax returns, it’s easy to lose the competitive edge. Attention to detail and strong communication skills help a tax preparer stand out as an expert in the industry.

Keep a List of References

Keeping a current list of references from previous clients is a good way to get new customers. People looking for a tax preparer want someone who doesn’t make many mistakes and saves them from unwanted tax audits. A good tax preparer is forthcoming with references because satisfied customers can attest to her reliability, according to an article published on the National Association of Tax Professionals website. Ask current clients if you can use them as references for new customers. With ever-changing tax laws and tightening Internal Revenue Service policies, your prospective new clients might want to contact your previous clients to make sure they select qualified experienced tax preparers.

Provide Contact Information

Provide your contact information to clients so you are readily accessible. If you work for a tax preparation firm, give your clients a direct number, so they can reach you at any time. “ABC Good Morning America” stresses the importance of providing your clients with contact information, so they can contact you after tax season is over. That’s usually when clients hear back from the Internal Revenue Service (IRS) about any tax problems on their returns. You want your clients to see you as a long-term investment, so they return year after year for tax preparation services.

Related Reading: A Tax Preparer’s Career Information

Stay Current on Tax Laws

As long as you stay current on new tax laws, available deductions, applicable credits and money-saving tax practices, your services will be in demand. According to the IRS-approved continuing education tax website Pronto Income Tax of California, the tax industry is recession-proof because people will always need to file taxes. Participating in continuing education classes, researching new tax laws on tax association websites and researching IRS publications can help you stay on top of the game.

Specialize in a Tax Field

Consider specializing in a particular field, so you attract customers who need your specific skill sets and expertise. Complex real estate issues, self-employment income, retirement income, investments, business expenses and inheritances have detailed tax requirements and provisions. Specializing in a particular field helps you stand out from other tax preparers who only provide cookie-cutter services.

Most Americans dread April 15, but tax preparers can make tax season easier to manage. Tax preparers maneuver a maze of federal, state and local tax laws to help taxpayers complete their income tax returns. To handle the job’s responsibilities, tax preparers need specific skills and training. Tax preparers, also called tax advisors, tax consultants and tax associates, will see average job growth of 10 to 19 percent through 2020, according to the U.S. Department of Labor. I will show you all you need to know about Tax Preparer’s Career Information.

Duties

Tax preparers have several job responsibilities. Their work starts with interviewing taxpayers for information on taxable income and potential write-offs or credits. A review of financial records, including income statements and receipts, follows. Once they have a handle on a client’s obligations, tax preparers use IRS tax tables and computer programs to total the tax bill and determine the amount owed or overpaid. Where applicable, preparers use gross-income adjustments, deductions and credits to reduce clients’ final tax tab. Tax preparers also go over numbers on forms to verify that added amounts or data entries are correct. Preparers may work with both individual taxpayers and small businesses.

Characteristics

Tax preparers need several characteristics and skills to handle their duties. Math skills are key, because tax preparation is a numbers-heavy job that calls for an understanding of how to use arithmetic or algebra to solve problems. Critical thinking skills, such as logic and reasoning, are essential to coming up with solutions for complicated returns. To determine a client’s needs and convey important information about required documentation and return completion, tax preparers must have communications and listening skills.

Education

Tax preparers don’t need a college degree. Many community colleges and vocational schools offer programs that teach local, state and federal tax laws in as little as six months. The amount of coursework varies; some schools require 10 to 12 classes, while others set an educational standard of 90 hours of classroom work. Coursework typically includes classes on itemized deductions, retirement plans, tax planning, business expenses, payroll taxes and partnership taxation. Also, because tax laws change every year, the IRS requires paid tax preparers to take 15 hours of continuing education annually, including 10 hours of courses in federal tax law, three hours of federal updates and two hours of ethics.

Registration

The IRS requires all paid tax return preparers to register annually with the agency and obtain a Preparer Tax Identification Number. Once tax preparers have received their tax identification number, they must pass the IRS’ Registered Tax Return Preparer Competency Test, which includes questions on determining file status, adjusting gross income, choosing deductions and credits and understanding tax payments, among other subjects. Tax preparers are eligible to practice once they have their Registered Tax Return Preparer certificate. Renewal season is every fall, from October to Dec. 31. As of 2012, the annual cost to register was $64.25. Attorneys, CPAs and enrolled agents do not need to register annually with the IRS to prepare tax returns.

Pay

Tax preparers took home a median annual income of $32,320 as of May 2011, according to the U.S. Bureau of Labor Statistics. The bottom 10 percent of earners averaged $18,540, while the top 10 percent averaged $71,450. By industry, insurance carriers paid tax preparers the highest annual average income, at $58,390. Also paying above average were corporate headquarters, at $52,070, and financial investment activities, at $44,870. Tax preparers based in Massachusetts earned the highest annual average pay by state, at $58,990. Rounding out the top three were New Jersey, at $57,040, and Alaska, at $53,020.