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The guidance covers communication, use of tax software, client development, and whether a license is required, including specific state differences and the major preparer types (EA, ERO, AFSP, CPA).",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/exam/","Exam",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/how-to-become-a-professional-tax-preparer-taxwise-online/394516/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/how-to-become-a-professional-tax-preparer-taxwise-online/394516.png","ImageObject",300,407,{"name":42,"@type":43},"River Wang","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-11-10","2026-09-26",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",11,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What is a PTIN and who needs it?","Question",{"text":63,"@type":64},"A PTIN is required for anyone paid to prepare or assist in preparing federal tax returns. 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These include but are not limited to asking yourself the following questions.  \n▪ Do you meet the eligibility requirements?  \n▪ What type of preparer do you want to be?  \n▪ Do I need a license to prepare tax returns?  \n▪ What are the IRS and state specific requirements to prepare and file returns?  \nBecoming a Tax Preparer Checklist  \nWhile there are many things that are nice to have before becoming a professional tax preparer, only a few things are needed. They are:  \n▪ Communication Skills – Part of being a tax preparer is interacting with clients and having people skills will be key to keeping clients coming back. Professional tax preparers must have the ability to communicate in a variety of settings clearly and concisely.  \n▪ Technology and Tax Preparation Software – While it is possible to preparer tax returns by hand,  \ntechnology that helps the professional tax preparer manage their offices and their clients not only increases efficiency and productivity, it’s also an essential business tool. Today, many professional tax preparer solutions provide software to complete the tax forms and help in understanding how to prepare returns.  \n▪ Clients – Many preparers start on a small scale preparing basic individual returns before moving onto complicated individual and business returns. Though it may seem obvious, you want to have a plan in place for attracting tax clients. While many preparers start out small and undercut their competition to build a client base, it's important to take time to define your ideal client and market. This will give you a leg-up on the competition, without cutting prices to gain clients.  \n▪ Preparer Taxpayer Identification Number (PTIN) – A PTIN is required for anyone who is paid to  prepare or assist in preparing federal tax returns. Keep in mind that PTIN must be renewed annually. Once the PTIN is issued, it must be placed on every single return that a paid tax preparer prepares.  \n▪ Electronic Filing Identification Number (EFIN)– Another critical number required is an EFIN. An EFINis assigned by the IRS to identify firms that have completed the IRS e-file application to become an Authorized IRS e-file provider. Unlike a PTIN, an EFIN does not expire or require renewal, however it is important that if the name or EIN of your tax business changes, that you update the information through the online portal or replace your EFIN, depending on what the circumstance requires.  \nWho is eligibility to become a tax preparer?  \nThere are no minimum requirements to be a tax preparer. Anyone with an IRS Preparer Tax Identification Number (PTIN) can be a paid tax preparer. Basic requirements for obtaining a PTIN include:  \n▪ A Social Security Number  \n▪ Previous year’s individual tax returns, including explanations for problems with your US individual or business tax obligations (if any)  \n▪ Explanation for felony convictions  \n To learn more about what you need to obtain your PTIN, review the PTIN Application Checklist on the IRS site and the corresponding videos on the TaxWise Online Learning Portal.  \nDo you need a license to prepare tax returns?  \nWhile a PTIN is the starting point for any tax preparer, it’s not a license per se. There is no specific license requirement to prepare federal tax returns. If you want to represent clients in front of the IRS, however, you need to be an Enrolled Agent (EA), CPA, or an attorney.  \nWhen it comes to state taxes, however, there are currently 7 states that require a license to prepare tax returns for compensation in those states. These currently include:  \n▪ California  \n▪ Connecticut  \n▪ Illinois  \n▪ Maryland  \n▪ Nevada  \n▪ New York  \n▪ Oregon  \n For those professional tax preparers who are CPAs, ","cbCaifEtXsRfDqnM","https://ap.wps.com/l/cbCaifEtXsRfDqnM","pdf",127800,"English","# How to Become a Professional Tax Preparer\n## Becoming a Tax Preparer Checklist\n## Eligibility to Become a Tax Preparer\n## Do You Need a License to Prepare Tax Returns?\n## Types of Preparers\n## How Long It Takes","[{\"question\":\"What is a PTIN and who needs it?\",\"answer\":\"A PTIN is required for anyone paid to prepare or assist in preparing federal tax returns. It must be renewed annually and placed on every return prepared by a paid tax preparer.\"},{\"question\":\"What is an EFIN and when does it need updating?\",\"answer\":\"An EFIN is assigned by the IRS to identify firms authorized as an e-file provider. It does not expire or require renewal, but you must update it in the online portal or replace it if your business name or EIN changes.\"},{\"question\":\"Do you need a license to prepare tax returns in every state?\",\"answer\":\"No. There is no specific license requirement for preparing federal tax returns, but some states require a license for compensation. The document lists California, Connecticut, Illinois, Maryland, Nevada, New York, and Oregon as requiring licensing.\"}]","How to Become a Professional Tax Preparer - TaxWise Online | PDF",1790404802]