How to become a tax preparer in NC: A Step-by-Step Guide
Becoming a tax preparer in North Carolina can be a rewarding career choice for those who have a keen interest in finance, accounting, and helping others. With the tax season approaching, many individuals are looking to become tax preparers to take advantage of the lucrative opportunities that come with it. In this article, we will provide you with a step-by-step guide on how to become a tax preparer in North Carolina.
1. Understand the Requirements
Before you embark on your journey to become a tax preparer in NC, it is crucial to understand the requirements set by the Internal Revenue Service (IRS) and the North Carolina Department of Revenue. Here are the key requirements:
– Be at least 18 years old.
– Have a high school diploma or equivalent.
– Pass the IRS competency examination.
– Complete a minimum of 14 hours of continuing education every three years.
2. Obtain an IRS Preparer Tax Identification Number (PTIN)
To legally prepare tax returns, you must obtain an IRS Preparer Tax Identification Number (PTIN). This number is required for all tax preparers, regardless of their level of experience. You can apply for a PTIN online through the IRS website.
3. Pass the IRS Competency Examination
The IRS competency examination is designed to test your knowledge of tax preparation, ethics, and professional conduct. To pass the exam, you need to score at least 70%. The exam is available online and can be taken multiple times until you pass.
4. Complete Continuing Education
As mentioned earlier, tax preparers in North Carolina must complete a minimum of 14 hours of continuing education every three years. These courses are designed to keep you updated on the latest tax laws, regulations, and industry best practices. You can find approved continuing education courses through the IRS website or reputable tax preparation schools.
5. Apply for an Annual Filing Season Program (AFSP) Record of Completion
The IRS Annual Filing Season Program (AFSP) is an optional program that allows tax preparers to receive a Record of Completion. This record can be used to demonstrate your tax preparation experience to clients and potential employers. To apply for the AFSP, you must complete the IRS competency examination and at least 15 hours of continuing education.
6. Obtain a North Carolina Tax Preparer License
While not required by the IRS, obtaining a North Carolina tax preparer license can enhance your credibility and open up more job opportunities. To obtain a license, you must meet the following requirements:
– Be a resident of North Carolina.
– Have a PTIN.
– Complete the IRS competency examination.
– Pass a criminal background check.
– Submit an application along with the required fees.
7. Gain Experience
Once you have obtained your PTIN, license, and completed the necessary education, it is essential to gain practical experience. You can work as an intern, apprentice, or employee under a licensed tax preparer to learn the ropes and build your resume.
Conclusion
Becoming a tax preparer in North Carolina requires dedication, hard work, and a commitment to continuous learning. By following this step-by-step guide, you can navigate the process and achieve your goal of becoming a tax preparer. Remember that the tax preparation industry is always evolving, so staying updated on the latest regulations and best practices is crucial for your success.
