Working as a tax preparer in Texas means handling the tax affairs of organizations large and small. Whether operating in the public or private sector, you’ll be at the forefront of the organization’s tax filing strategies, providing ongoing support via accurate filing and tax-related advice. Organizational leaders will lean on you as a trusted financial expert to help them steer their company the right way and avoid problematic compliance headaches.
For that reason, tax preparers have a lot of responsibility and large shoes to fill. This is a perfect role for anyone looking to play a fundamental part in an organization’s success, while earning a competitive salary and enjoying a comfortable level of job security to boot. For more information about how to become a respected tax preparer in the state of Texas, read on.
What Is a Tax Preparer?
As financial professionals, tax preparers are viewed as experts in guiding businesses through the process of filing their tax returns. They use their in-depth knowledge of the tax code to provide customized taxation filing processes and strategic solutions for their clients. Businesses, non-profits, and other organizations use tax preparers to optimize their financial situation during tax season. Every organization has unique circumstances that influence their tax position, and a good tax preparer can almost always find good tax-saving opportunities to legally take advantage of.
In this same vein, tax preparers can offer services such as:
- Strategic Tax Planning: Tax preparers can offer customized tax solutions to their clients so that they take better advantage of the creditors and deductions available to them. These discussions often begin long before tax season so that companies can adjust their operations according to the tax preparer’s suggestions.
- Advising About the Tax Code: Few things are as serious as an audit, and many audits are caused by improper filing procedures during tax season. Companies can avoid these situations by working with seasoned tax preparers who can help them head off potential difficulties with more accurate fiscal reports.
- Financial Consulting: Many businesses conduct tax-inefficient operations without knowing it. Tax preparers, with their comprehensive knowledge of the tax code, can identify possible areas of improvement in the organization’s methodology and provide suggestions that management could adopt.
Tax preparers are therefore a crucial part of any organization’s arsenal when they want to ensure their financial stability.
What Does a Tax Preparer Do?
Tax preparers work principally with their client’s financial data. Once receiving that data, they sift through it meticulously, searching for patterns and insights that can lead to more advantageous deductions come tax season. From these reams of client data, tax preparers produce detailed financial reports that their customers can use, including income statements, expense reports, and an overview of their current investment portfolio.
The idea is to establish a holistic and general overview of a client’s fiscal situation regarding their tax position. Using their knowledge of the tax code, tax preparers can align these reports with applicable laws to show management teams exactly where and how changes need to be made to optimize their financial health. This requires a comprehensive understanding of tax law at both the state and federal level, as well as a commitment to continuing education.
Tax laws change all the time, and tax preparers need to be prepared to communicate the effects of these changes to their clients in an understandable way.
How to Become a Tax Preparer In Texas
Texas, unlike many other states, doesn’t have a state-specific tax preparation licensing requirement. That means you can focus your efforts on securing federal licensing from the Internal Revenue Service (IRS), which you’ll be able to apply freely within the state of Texas. Nevertheless, the act of getting that federal licensing can be a little convoluted.
We can break the needed steps down like so:
Tax Preparer Education
The state of Texas doesn’t have specific educational requirements for you to secure tax preparer licensing. However, the very nature of the job means developing a comprehensive understanding of both the U.S. and Texas tax codes, which will mean an extended learning period before you
Comprehensive tax preparer education encompasses a complete overview of the tax. It also means learning about:
- Ethical Standards: Tax preparers often work with confidential financial documents and need to know how to handle them correctly.
- Maintaining Professional Client Communication Standards: The relationship between tax preparers and their clients is built around trust and mutual rapport. Being an effective tax preparer means having good communication skills and a commitment to meeting your client’s most stringent expectations.
- Technical Proficiency: Modern tax preparation regularly relies on tax software, such as can be provided by Intuit, to create accurate filings. You’ll need to know how these programs work, and how to make the most of them, if you expect to be successful as a tax preparer.
PTIN and EFIN
The IRS issues two crucial identifiers to tax preparers in Texas. These are both required designations if you expect to work as a tax preparer in the state, but they serve different purposes.
- Preparer Tax Identification Number (PTIN): This is a simple identification number for anyone who assists in preparing federal tax returns for a fee. Having a PTIN is not necessarily indicative of your level of tax code knowledge. It’s merely a designation, issued by the IRS, that you are suitable to fulfill this role.
- Electronic Filing Identification Number: This is similar to PTIN, but it’s exclusive to electronic filings. Anyone who wants to file tax returns electronically, using the IRS’s e-filing system, needs to first obtain an EFIN number. Moreover, having a PTIN is a prerequisite to having an EFIN.
Tax Preparer Training
Given how educationally demanding a job as a tax preparer truly is, it makes sense to look for a comprehensive course, such as the one offered by Intuit, to learn about the field. Intuit Academy offers jobseekers a mix of:
- Online and in-person classes to learn tax preparation on their own time.
- Flexible class scheduling so that they can learn at their own pace.
- Nationally recognized certifications that can prepare you to start working as a tax preparer upon completing the course.
Intuit Academy covers a range of applicable topics for would-be tax preparers, from software requirements to best practices. It could very well be your first step toward becoming a successful tax preparer in your area.
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 that allow you to work from Texas 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