The word tax preparation is a nightmare for many. The idea of getting hold of their yearly financial records, looking through a pile of receipts and spending hours poring over calculations and filling out forms may scare off a large majority of the population. On the other hand, there are always people who like to stay up to date with their taxes and find it relaxing and even exciting to do their taxes for the year.
If you fall inthe second category, there is good news for you – you can not only reap the benefits of doing your taxes on your own and save money and hassle but also turn your skill intoa profitable career. The market demand is high, as people are always looking for a professional who can do their taxes accurately and save them the hassle of going through it all on their own.
However, working professionally as a tax preparer is different from working on your own taxes. Here are the essential things you will require to start a tax business. Take a look:
The PTIN is a unique code of digits assigned to every paid tax preparer. The tax preparer will have to use this number for all U.S. Federal tax returns that are being submitted to the Internal Revenue Service. There is a fee for registration.
Similar to the PTIN, the EFIN is also assigned by the IRS to paid tax preparers but it grants you access to electronic tax services. With the EFIN, the individual also has the authority to file taxes electronically for other people. Registering for the EFIN is free of cost; however, you will be required to submit supporting documents as well as fingerprints for security purposes.
Aside from the PTIN and EFIN, some documents as well as a specialized tax preparation software is also needed to begin your tax preparation services.
Have you filed for a PTIN or EFIN yet? If yes, how long was the process and were there any issues that you faced along the way? Let us know!