You'd think people would be warming up to AI-powered tax preparation. The opposite is happening. The Numbers As of early 2026, only 37% of tax filers said they'd trust AI over a human preparer. That's…
Data Security for Tax Preparers: What the IRS Expects You to Do
You'll be handling Social Security numbers, income data, bank account information, and dates of birth. The IRS requires you to protect it. Here's what that means in practice. The Legal Requirements The IRS requires all…
IRS Due Diligence Requirements: What Form 8867 Actually Requires
If you claim the Earned Income Credit, Child Tax Credit, Additional Child Tax Credit, American Opportunity Credit, or Head of Household filing status on a client's return, the IRS requires you to complete Form 8867…
When Does a Client’s Tax Problem Become a Legal Problem?
One of the most valuable skills a tax preparer can develop is recognizing when a client's situation has crossed from return preparation into legal territory. Here's where that line typically falls. IRS Audits If your…
IRC 6694 and 6695: The Preparer Penalties You Need to Know
These two sections of the Internal Revenue Code apply to every paid tax return preparer, regardless of credentials. If you're preparing returns for compensation, these are the rules that can cost you money. IRC Section…
What to Do When a Client Brings You Three Years of Unfiled Returns
It's going to happen. A client sits down and tells you they haven't filed in two or three years. Maybe longer. Here's how to handle it. Step 1: Don't Turn Them Away Immediately An unfiled…
How to Pull an IRS Wage and Income Transcript for Your Client
This is one of the most underused tools available to tax preparers, and it can prevent the most common source of IRS notices. What It Is A wage and income transcript shows every information return…
Estimated Taxes Explained: What to Tell Your Self-Employed Clients
If you have self-employed clients, gig workers, freelancers, or anyone with income that doesn't have taxes withheld, estimated taxes need to be part of every conversation. How It Works The U.S. tax system is pay-as-you-go.…
Tax Credits New Preparers Miss (and How to Catch Them)
Credits are dollar-for-dollar reductions in tax liability. That makes them more valuable than deductions, and new preparers miss them constantly. Earned Income Tax Credit The EITC is one of the largest credits available, worth up…
Filing Status Rules: The Most Common Mistakes New Preparers Make
Filing status is one of the first things you determine on every return, and getting it wrong throws off the entire filing. Here are the mistakes new preparers make most often. Defaulting to Single When…