Tax Preparation

MYTHS

All Tax Preparers are Licensed

Wrong, Wrong, Wrong, and Wrong. There are a few basic requirements established by law that a person who preparers Tax returns for compensation must adhere, but these requirements do not require any training or education.

REQUIREMENTS TO LEGALLY PREPARE TAX RETURNS FOR MONEY

The IRS requires anyone who is preparing Tax Returns for compensation (profit) to registered for a Personal Identification Number or PTIN. This is just a number that the IRS issues which you must use on each Tax Return you prepare. Almost anyone can request and receive a PTIN with very few exceptions and you don’t have to have prove you know anything at all about Tax Preparation. There’s no test or exam or requirements whatsoever.

If someone plans to file 11 or more Tax Returns for compensation (money) they are required to E-File those Returns through the IRS E-Filing System for which they will require an Electronic Filing Identification Number or EFIN as it’s commonly called. Again, this is just a number which is issued and someone who is filing Tax Returns through another person or company would not need an EFIN. Regardless, applying for an EFIN is very easy and the only certification which is required is that an EFIN holder must be fingerprinted for an FBI file.

AND THAT’S ALL FOLKS

Under current law, individuals may file Tax Returns for money without any training, education, or experience. They may buy any Tax Software from any developer. Aside from the requirement to E-File all returns and the registration for a PTIN and EFIN there are absolutely NO required licensing, NO required certification, and NO required training or education.

ANYONE CAN FILE TAX RETURNS FOR MONEY