If you’re thinking about becoming a tax preparer, the process is more straightforward than most people expect. There’s no federal exam requirement, no mandatory degree, and you can be up and running in a matter of weeks. Here’s exactly how to do it.
Step 1: Get Your PTIN
A Preparer Tax Identification Number is the one credential the IRS requires of every paid tax preparer. You apply online at irs.gov, pay about $19, and in most cases you’ll have your number the same day. No test, no prerequisites.
Step 2: Get Trained
The IRS doesn’t require formal education to get a PTIN, but that doesn’t mean you should skip training. Tax preparation involves applying federal and state tax law to real people’s financial lives. Mistakes carry penalties for your clients and for you. Invest in a program that covers the tax code, the forms, and the legal framework you’ll be operating under. Options range from H&R Block’s $149 course (which trains you to work for them) to independent programs that teach you to build your own practice.
Step 3: Apply for Your EFIN
An Electronic Filing Identification Number lets you e-file returns with the IRS. The application is free but involves a background check and can take up to 45 days to process. Apply early, ideally while you’re still in training, so you’re approved before filing season starts.
Step 4: Form Your Business
Set up an LLC, get an EIN from the IRS, open a business bank account, and get errors and omissions insurance. This sounds like a lot, but the whole process can be completed in a week or two. An LLC gives you liability protection, and a separate bank account keeps your personal and business finances where they belong: apart.
Step 5: Choose Your Software
Professional tax preparation software is different from what consumers use on TurboTax. Drake Tax, TaxSlayer Pro, and TaxAct Professional are popular options for new preparers. Some offer pay-per-return pricing so you’re not locked into a large upfront cost before you know your volume.
Step 6: Get Clients
Start with your personal network. Tell everyone you know that you’re preparing taxes. Post on social media. Set up a Google Business Profile. Reach out to local small businesses. The first 50 clients are the hardest. After that, referrals start doing the heavy lifting.
Step 7: Consider the Annual Filing Season Program
The AFSP is a voluntary IRS program that gives you a Record of Completion, limited representation rights, and a listing in the IRS’s online directory of tax professionals. It requires 18 hours of continuing education per year. It’s not mandatory, but it’s well worth the investment.
What About State Requirements?
Most states don’t require anything beyond a PTIN. California, Oregon, Maryland, and New York have additional registration or licensing requirements. Check your state before you start.
The Timeline
From “I want to do this” to “I’m ready to take clients,” you’re looking at roughly 8 to 12 weeks if you’re focused. That timeline includes training, business formation, EFIN processing, and marketing. If you want to be ready for the January filing season, start no later than October.
The Bottom Line
The barrier to entry is low, but the responsibility is real. The IRS holds preparers accountable under Circular 230 and IRC Sections 6694 and 6695. Getting trained properly before you touch your first client’s return protects you and protects them.
At MuseSpring, we train aspiring tax preparers to build independent practices the right way, with attorney-led instruction covering tax law, business formation, legal compliance, and AI tools. If you’re serious about this path, visit musespring.com to learn more.