With the workforce rapidly diversifying in 2024, many people in California are naturally looking for more flexible scheduling in their jobs. Becoming a tax preparer can be a rewarding career choice for anyone with a knack for numbers and a desire to help others deal with their most pressing tax problems. Tax preparers have the ability to set their own schedules and work with a broad spectrum of clients, making it an excellent choice if you think you can tackle the Golden State’s strict education requirements.
What Is a Tax Preparer?
In effect, a tax preparer is a professional who helps others complete and file their tax returns. Their main responsibility is to understand and stay current with the network of changing tax regulations that can impact their clients’ annual filings. Tax preparers also help their clients file their financial statements accurately and efficiently. If there are available deductions or credits, the tax preparer is there to find them, but always in accordance with federal and state tax laws.
In order to do their job effectively, tax preparers need:
- Strong knowledge of applicable tax laws.
- The ability to collect and use large sums of financial data.
- Knowledge of available deductions and credits for a range of professions.
- Detailed knowledge of different forms used for electronic or physical filing requirements.
In some cases, tax preparers might even be called upon to represent a client during an audit.
What Does a Tax Preparer Do?
The job of a tax preparer often begins with a consultation, during which clients discuss their financial situation and taxation needs. Tax preparers use their expertise to provide suggestions relevant to the client’s circumstances and prepare them for filing. These consultations typically take place well in advance of tax season so that clients can make more strategic decisions regarding their tax position.
Moreover, tax preparers educate their clients about potential hazards or opportunities in their tax situation. They can assemble and prepare the requisite tax forms clients will need to file. Doing this correctly can minimize the risk of a future audit.
How to Become a Tax Preparer in California
The process of becoming a tax preparer in California begins with understanding the California Tax Education Council (CTEC). This is the regulatory body responsible for overseeing correct tax preparation in the state. Anyone wishing to become a tax preparer in California will need to do so through the CTEC, with the exception of certified public accountants (CPAs), attorneys who are already members of the California State Bar, and a select few other officials.
Registration with the CTEC comes with its own set of requirements. The tax council requires you to enroll in a 60-hour education course from a provider that the CTEC approves of. Certification of completing this course will have to be provided within the last 18 months.
Plus, you’ll need to purchase and provide proof of a $5,000 tax preparer bond from a surety agent. The purpose of this bond is to cover financial loss from improper, or even fraudulent, tax preparation. The State of California requires it as a measure of protection for your future clients. After this, you’ll need to:
- Undergo a fingerprinting process called the Live Scan. This records a digital fingerprint for the Department of Justice as a way to avoid identity theft and other criminal activities. It’s a required step for anyone seeking certain professional licenses in California, including a tax preparation license.
- Acquire a Preparer Tax Identification Number (PTIN). This is a unique number issued by the IRS for identifying specific tax preparers.
- Pay a $33 registration fee. This is simply to cover the costs of maintaining this registration and verification process.
Once you’re set and approved with the CTEC, you’ll have to renew membership with them every year to stay current. The renewal method largely echoes the registration procedure just discussed, requiring yet another $33 fee and continuing verifications of your PTIN number and bond surety. However, there’s also a 20-hour continuing education requirement that includes:
- 10 additional hours of federal tax education.
- 3 additional hours discussing updates to the federal tax system.
- 2 additional hours of ethics to remind you of the tax preparer’s obligations.
- 5 additional hours of tax law education related to California specifically.
Tax Preparer Training
Apart from the additional credentialing requirements specific to California, the actual tax preparer training process looks similar as it does elsewhere in the country. The core components of the tax preparation curriculum will include:
- An overview of tax laws and regulations, both in California and the United States as a whole.
- Exploration of the different kinds of tax forms and their various applications.
- Practical exercises describing common problems tax preparers face and their possible solutions.
- An overview of common tax preparation applications, such as Intuit’s ProConnect Tax software.
These training programs often offer a mix of classroom and online options, both to enhance the quality of their offerings and provide for flexibility in scheduling. That allows students to pursue their tax preparation license without needing to leave their day jobs to do it.
For instance, Intuit Academy is an approved tax preparation course for those seeking certification in California. The program actually offers two separate courses:
- Tax Level 1: This course teaches you the fundamentals of tax preparation, including laws, the principles of deductions and credit, and more.
- Tax Level 2: This course dives into the details of the tax preparation process, whether for small businesses, self-employed workers, or a variety of other entities.
Upon completing these courses, students must take and pass Intuit’s own internal examination. This test, lasting up to 2 hours, ensures that you actually know the necessary requirements for competent tax preparation in California. Each course has its own accompanying exam to test the knowledge learned there.
Completing Intuit Academy gives you the right to place digital badges on your online career profile, certifying that you’ve gone through and passed the course. This is an effective way to convey your knowledge to potential clients and employers in the future.
Current Openings for Tax Preparers
Ready to take the next step? Join Intuit and gain access to top-notch training, resources, and support to help you become a tax expert. Start growing your knowledge and career with the below openings in California and beyond.
Tax Associate (Remote/Seasonal)
- Minimum 2 seasons of paid Tax Preparation experience, with a minimum of 30 tax returns per tax year required
- Must be willing and available to work a minimum of 20 hours per week
- Excellent customer service skills are a must, and there is an expectation to interact with customers through video and audio tools in a professional, friendly, and confident manner
- Passionate about helping clients navigate the complexities of taxation
- PTIN required
Credentialed Tax Expert (Remote/Seasonal)
- Minimum 2 seasons of paid Tax Preparation experience, with a minimum of 30 tax returns per tax year required
- Must possess an active, unrestricted credential: EA, CPA, or Practicing Attorney with strong tax preparation experience and extensive knowledge of tax laws
- Must be willing and available to work a minimum of 20 hours per week
- Excellent customer service skills required for professional and friendly interaction with customers through video and audio tools
- Active PTIN required
Business Tax Associate (Remote/Seasonal)
- Minimum 3 or more years of experience preparing federal and state business tax returns (1065 and/or 1120-S) for at least 20 clients/customers per season for compensation
- Must possess or be able to obtain any related State licenses, certificates, permits or bonds
- Commit to a minimum schedule of at least 20 hours/week (minimum 4 hour shift increments) throughout the tax season
- Strong customer service skills for interacting with customers through video and audio tools
- Active PTIN required
Business Tax Expert (Remote/Seasonal)
- Minimum 3 or more years of experience preparing federal and state business tax returns (1065 and/or 1120-S) for at least 20 clients/customers per season for compensation
- Must possess an active, unrestricted credential: EA, CPA, or Practicing Attorney with strong business tax preparation experience and extensive knowledge of tax laws
- Commit to a minimum schedule of at least 20 hours/week (minimum 4 hour shift increments) throughout the tax season
- Strong customer service skills for professional interaction with customers through video and audio tools
- Active PTIN required