First time preparing taxes this season and need advice

I assume you want to become a paid tax preparer?

If not, if you wish to start with volunteering, then both IRS and AARP and some others sponsor their own volunteer programs, and will train you and supply free training materials and usually lend you laptops and software. If this appeals to you, just let us know and we can let you know where to look. There are several topics, such as rental income, Alternative Minimum tax, depreciation, and Net Operating Losses, that are not part of these programs, but then a first year tax associate at a nationwide firm would probably not see many of these returns either.

To be a paid tax prparer requires that you obtain a PTIN. By 2013 you will also have to become a Registered Tax Return Preparer, unless you are an attorney, a CPA or an Enrolled Agent. A RTRP has passed an examination and takes at least 15 hours of continuing education annually.

Exception: If you work for an attorney, CPA or EA firm, and such person supervises your work and signs each tax return you prepare, you are not required to become a RTRP.

Taking an introductory tax prep course given by one of the nationwide firms is probably the most practical way to become a paid preparer for this coming season. But hurry. In our area, a major firm has already begun its course.

If you prepare 11 or more tax returns for money you must e-file them (although there are limited exceptions to this rule.) If you do not work for a firm engaged in efiling, you will have to arrange to be issued an EFIN including the fingerprinting, which I learned this week you can ask any UPS store to arrange for you.

__________ If you could get a job with a CPA firm, that would be best, but it would be difficult to find one that would hire you. However, if you take the H&R Block tax course it is highly likely that they would hire you. They pay minimum wage for the hours you work, and they pay you a percentage of the fees charged for the returns you prepare if it exceeds the minimum wages. After a year or two with Block you could then open your own tax practice. JH and Liberty may have similar programs to train preparers.

I got in contact with the VITA program with the IRS and I know they have classes, I just wasn't sure how in depth it was. Actually, they just called me back this morning. I got an e-mail back from liberty tax and they say their course is free but the books cost $150. I am OK with paying the money if it is a good firm and I am going to get good training.

I am working towards my CPA license and that is the path I want my career to follow FWIW.

On Sep 23, 9:25 am, "Oliver P Shagnasty" wrote:  However, if you take the H&R

It used to be the case that H&R Block had a rather expansive non- compete agreement that you had to sign. In addition to a permanent ban on seeking to prepare or preparing a return of a client you contacted through H&R Block, there was a 4 year and 50 miles restriction. That is, for 4 years after you retired from H&R Block, you couldn't prepare a return within 50 miles of where you prepared your returns for them. I don't know if they've relaxed the requirements, and I do know that some states make such an expansive non-compete unenforcable.

Arthur L. Rubin (now a 1L at Western State University)

Non-compete clauses are mostly void in California. You may read about it

Also, if you happen to be in CA, then in addition to the IRS requirements mentioned, you need CTEC requirements. You have to do a

60 hour course, and 20 hour continuing class each year, and pay an annual $25 fee, and you need a $5000 bond which I think costs around $150 every 5 years.

Depending on the state you live in, a non-compete like that may or may not be legally enforceable. In California, for example, it's clearly not. Check with a local business lawyer to ask about the laws in your particular state.

-- Stu

Thanks for the information. I called H&R yesterday and they told me that the classes are currently full. I also spoke with someone from Liberty Tax today about a class that is starting on Monday. He mentioned that taking the class and passing does not guarantee a job at that office, or any of their offices for that matter. From what I gather H&R also works this way. I am reluctant to sign up for one of these classes for the fear of completing the course and not getting hired by the office, after all it seems like the classes are getting filled. Any advice would be appreciated, anyone have any experience with this? I also have the option of working with VITA and thinking about doing this anyways as it will be a good experience and would be nice to add volunteering to my resume. Any thoughts?

I really want to devote time to tax preparation this upcoming tax season but I am just unsure of which path to take. BTW I live in Florida and will have to research the stance on non-compete clauses. Thanks again.

The wikipedia link I gave you talks about Florida too. It's so basic, and is just a starting point for your investigation though.

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Florida

The enforceability of non-compete agreements in the state of Florida is quite common. Some law firms build their law practice around these agreements and represent employees, employers and potential new employers of an employee currently bound by a non-compete agreement. The agreement is not allowed to be overly broad and generally difficult to enforce if it is for more than two years. Also if the agreement is part of a general employment contract then there is the possibility of a Pre-Breach by an employer. This may cause the non- compete clause of the contract to become unenforceable.[citation needed]

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