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…
Five Revenue Streams Every Tax Preparer Should Consider Beyond Filing Season
If your only revenue comes from January through April, you're leaving money on the table. Here are five services that turn a seasonal practice into a year-round business. 1. Bookkeeping Your small business clients need…
Google Business Profile for Tax Preparers: A Setup Guide
If you do one thing for your online presence, set up a Google Business Profile. It's free, it takes 20 minutes, and it's the single most effective way to show up when people in your…
How to Write an Engagement Letter for Tax Preparation Clients
An engagement letter is a written agreement between you and your client that defines what you're doing, what you're not doing, what the client is responsible for, and how much it costs. Every client, every…
Do Tax Preparers Need Errors and Omissions Insurance?
Legally required? In most states, no. Necessary? Absolutely. What E&O Insurance Covers Errors and omissions insurance (also called professional liability insurance) protects you when a client claims your work caused them financial harm. In tax…
What Is Circular 230 and How Does It Apply to Tax Preparers?
Most tax preparation training programs skip this topic entirely. That's a problem, because Circular 230 establishes the professional rules you're operating under whether you know about them or not. What It Is Circular 230 is…