How to Become an IRS Tax Preparer

As the saying goes, there are two certainties in life: death and taxes. That is why an Internal Revenue Service IRS tax preparer enjoys a certain level of job security. Individuals and businesses may file their own tax returns. However, the complexity of tax laws often requires the expertise of a tax professional. If you are detailed-oriented, enjoy math and have a penchant for learning laws and regulations, you may find a career in tax preparation very rewarding.

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  Learn how to prepare federal tax returns. A college degree in accounting is a route that leads to certification as a public accountant after taking an exam. Lawyers can specialize in tax accounting. The designation of IRS Enrolled Agent is earned through experience with the IRS and/or successful completion of an exam. In addition, tax preparation businesses and non-degree programs offer training. The IRS plans to enact competency requirements, beginning in 2011, for all preparers not in good standing with a licensing agency.

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  Apply for a preparer tax identification number through the IRS and pay the required fee. The PTIN is documented on every tax return next to the preparer's signature. Personal information, business information, Social Security number, explanations of felony convictions and details about prior personal tax filings are provided through the electronic application system on the IRS website. A limited compliance check may occur to ensure that your personal, employment and business tax returns have been filed and amounts due are paid.

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  Apply for a job. Educational and experience requirements vary by employer. Opportunities exist in certified public accounting firms, bookkeeping companies, law firms and tax preparation services. Use standard job search strategies to secure a position preparing tax returns.

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  Open a tax preparation business once you gain experience. Contact your state's department of business regulation to determine specific requirements which vary by state. For example, certified public accountants that use this designation must often follow requirements for business capitalization, naming the business and certification. Create a business plan to target areas of specialization.