What does a Tax Preparer do?
Tax Preparers are individuals who prepare tax returns for individuals or small businesses. There is currently no special licensing or certification required to become a tax preparer. Anyone can purchase tax preparation software and hang out a sign that says “Tax Preparer” and start getting paid to do other people’s taxes. When choosing a tax preparer, look for someone who has some other financial credentials and experience, such as bookkeeping or accounting. Some accountants who specialize in tax preparation call themselves “tax accountants,” which would indicate a greater degree of financial literacy beyond just buying software and hanging up a sign. However, be sure to ask about their background, since most states currently have no laws governing who can use the title “accountant.