What are the Requirements to Become an IRS Tax Preparer?

If you are considering earning your income as a future IRS Tax Preparer, there are number of requirements you must meet in order to start working with clients in need of a tax service.

Categories of Tax Preparers

The IRS classifies qualified tax preparers into several distinct categories. These categories are:

• Enrolled Agents
• CPAs
• Attorneys
• Supervised Preparers
• Non-1040 Preparers

Each category has its own set of qualifications which must be met in order to prepare individual or corporate tax returns.

Enrolled Agents

Enrolled Agents are the most rigorously qualified preparers of tax documentation. They must pass a three-part, comprehensive IRS exam which covers both individual and corporate returns. They are required to take a minimum of 72 hours of continuing education courses every three years, and must adhere to strict ethical standards. As a result, these preparers have unlimited rights before the IRS.

CPAs and Attorneys

CPAs and attorneys must pass a tax compliance check and a background check, but they are not required to take an IRS exam. Some may be required to complete continuing education courses in order to remain complaint with US law, but this varies. Both have unlimited rights before the IRS.

Supervised Preparer and Non-1040 Preparers

Both the supervised preparer and non-1040 preparer positions require the least amount qualifications. As a result, their ability to represent their clients concerning tax matters is severely limited in dealing with the IRS.

If you are looking for a career in tax preparation, these are the paths you can consider for employment.

Image credit: Alan Cleaver