Getting Started as a Tax Preparer for 2009

I worked for H&R Block about 3 years ago and enjoyed the work but felt that I was getting paid so little... I am in a position again to go back and work for them this season but have decided to try and branch out and do my tax preparing business.

Since I have not been keeping up with the yearly changes since 2005, what is the best way to quickly get educated on basic 1040 items so I can do some basic returns this year. I see that there is a NATP

1040 course being offered tomorrow and I am trying to decide if that is worth it for me to go to as a crash course.

Also, to do returns myself, I'll need some tax prep software since I've read that using TurboTax or TaxCut is not a good idea for professional tax preparers. Is there one that is not overkill for me this year?

And how does one get set up for e-filing? Does it come with the software? And what about RAL? Should I even try to get all that set up at this late date?

Basically, I am looking for a game plan and if anybody can point me in the right direction, I would greatly appreciate it. I know that I am really behind in getting ready for this season - but I want to give it a try and at least get the shingle out and do a few returns.

Marie

Reply to
Marie Perry
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It's not a matter of being "a good idea" or not, it's a licensing issue. TaxAct has a preparer's edition, go to their website to read more. Intuit also has professional products (several), there are even more out there, just use the Internet to do a search.

You will most likely need an EFIN from the IRS, check out the web site (TaxAct web site also has a link). RAL's are offered through banks, such as HSBC or Santa Barbara Bank & Trust. Beware, clients who want RAL's are often those who are eligible to receive Earned Income Credit, you'd better be up to speed on due diligence requirements for paid preparers.

There are a number of other issues for paid preparers, even if you aren't in a state that requires licensing or registration, such as California or Oregon. These include advertising, confidentiality, liability, and so on.

There are other options besides working for H&R Block (which usually is more remunerative after your first 3-month season) and setting up your own practice, including volunteer tax prep and working for someone else.

-Mark Bole

Reply to
Mark Bole

"Marie Perry" wrote

It can't hurt. In fact it should be a good course to get caught up on the

2008 changes as well as whats in store for 2009 to some degree.

Most all commercial software offers pay-per-return (usually in blocks of 5 or 10). For someone starting out with an unknown client base, that's probalby a good investment. Choose your software carefully, as you'll probably not be flip-flopping software every year, you'll be with them a while.

Full access versions (indiv, corp, trust, estate, partnership, etc) should be available for around $1000.

You'll need to register with the IRSto obtain an EFIN.

Most software is e-file compliant, you still need that EFIN. Be sure to ask about the fees the software company charges (if any) for that.

RAL's are made by a lender. Ask which lenders the software company has ties with. I suspect the lenders will take your application at this late of a date.

I am hearing that RAL's will not be as easy as in prior years, what with a credit crisis and all. It IS a loan that needs to be repaid, and that loan will be tougher to come by from what I hear.

Do your clients a favor and recomment to them a direct deposit of any refund in to their bank account in 8 to 15 days. No cost to them at all.

Your toughest decision is location. Where will you perform these services? Will you have clients come to a store front? Office? Or your home? Will you share space with someone? Make that decision FAST, but make a good one.

Second is hardware. Computer, printer, furniture, etc.

Third is your marketing. Signage, newspapers, radio, fliers, direct mail, etc. It ain't cheap, but some of it can be done on the fly as money comes in.

Fourth is supplies - most you should buy on the fly as needed.

Other thoughts would be if you will accept credit cards, so get a bank account open and talk to the bank about merchant services. Maybe consider rental equipment on a short-term basis for the four months.

Good luck.

Reply to
Paul Thomas, CPA

Marie Perry wrote: way to quickly get educated on basic 1040 items

Free online tax courses here:

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Reply to
paultry

Given how fast tax refunds are made these days (via either direct deposit or snail mail), I would be hard-pressed to think of a situation where an RAL could be justified. RALs are an artifact of, for one, a time when refunds were much slower in arriving. Furthermore, should you actually have a client that desperate for his/ her refund, they are highly likely to be low income and should be referred to the IRS's free VITA (tax prep) services.

Reply to
honda.lioness

I wasn't aware that a snail (paper) mail refund would *ever* arrive in time to pay next month's rent, from the date I file. Also, if no bank will give me a checking or savings account, I will have to pay a paper check cashing fee somewhere after waiting for my paper check from the IRS to arrive at my last known address.

The best choice for the significant number of unbanked taxpayers (10-15% of households according to Office of Taxpayer Advocate, IIRC) is a pre-paid (debit) card to which the refund can be direct deposited by the IRS at no extra cost, in 8 to 15 days.

-Mark Bole

Reply to
Mark Bole

Are you not acquainted with the fact that the IRS now publishes a schedule for refunds?

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among other siteslists the 2009 e-file and snail mail refund dates. Generally, filingearly in the month should get one his/her refund check by month's end.>From what I have seen, the IRS actually beats the deadlines listed. Also, if no bank

I dispute that a check cashing fee is anywhere near the interest and fees of an RAL.

Assuming these folks have the education and time to set this up. The best choice for unbanked taxpayers, who are going to be overwhelmingly low income, is a VITA office.

Reply to
honda.lioness

In addition to the other replies, are you in California? There you must be registered with CTEC, passed their course, and have a bond, though some or all of these are waived if you're a CPA.

Also, you have to decide between sole proprietorship and S/C corp. Not sure which is better.

Reply to
removeps-groups

Nope, I am in Georgia.

Reply to
Marie Perry

Start off simply. After all, first year will be tough financially, trying to get clients built up. IOW, observe the KISS principle.

ChEAr$, Harlan Lunsford, EA n LA well, actually "way down... near Columbus, Geor.....jah!"

Reply to
Harlan Lunsford

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