How to Become a Certified Tax Preparer in New York- A Step-by-Step Guide

How to become a tax preparer in New York

Becoming a tax preparer in New York can be a rewarding career choice for those who have a keen interest in finance, accounting, and helping others. The process involves several steps, from obtaining the necessary qualifications to adhering to state regulations. This article will guide you through the process of becoming a tax preparer in New York.

1. Educational Requirements

The first step in becoming a tax preparer in New York is to meet the educational requirements. While there is no specific degree requirement, most tax preparers have a background in accounting, finance, or a related field. Some tax preparers may have a bachelor’s degree, while others may have completed a tax preparation certification program.

2. Enroll in a Tax Preparation Course

Once you have the necessary educational background, you should enroll in a tax preparation course. These courses are designed to provide you with the knowledge and skills needed to prepare tax returns. The New York State Department of Taxation and Finance requires that tax preparers complete a minimum of 16 hours of continuing education every three years.

3. Obtain a Preparer Tax Identification Number (PTIN)

Next, you will need to obtain a Preparer Tax Identification Number (PTIN) from the Internal Revenue Service (IRS). This number is required for all tax preparers who are authorized to prepare tax returns for compensation. To obtain a PTIN, visit the IRS website and complete the online application.

4. Pass the IRS Tax Return Preparer Competency Examination

The IRS requires that all tax preparers pass the Tax Return Preparer Competency Examination. This exam covers a variety of tax topics and is designed to ensure that tax preparers have the necessary knowledge to prepare accurate tax returns. You can register for the exam online and take it at an approved testing center.

5. Apply for a New York State Tax Preparer License

New York State requires that tax preparers obtain a state tax preparer license. To apply for a license, you must complete the following steps:

• Fill out the Application for Tax Preparer License (Form TP-104)
• Submit proof of your PTIN and IRS tax preparer examination results
• Provide evidence of your continuing education credits
• Pay the licensing fee

6. Maintain Continuing Education Requirements

As a tax preparer in New York, you must maintain your continuing education credits to keep your license active. This involves completing the required number of hours of continuing education every three years, as well as staying up-to-date on tax laws and regulations.

7. Build a Reputation and Network

Once you have obtained your license, it’s important to build a reputation and network in the tax preparation industry. Attend tax preparation workshops, join professional organizations, and offer quality service to build a loyal client base.

In conclusion, becoming a tax preparer in New York requires dedication, education, and adherence to state regulations. By following these steps, you can establish a successful career in tax preparation and help clients navigate the complexities of the tax code.