What Is a Tax Preparer?

What Is a Tax Preparer?

A tax preparer is a person who prepares, analyzes, and submits income tax returns while representing individuals and businesses. They are also known as tax accountants.

It is possible to find different tax preparers, some accredited by third-party organizations and others that any organization does not credential.

Knowing the different sorts of tax preparers and their qualifications might assist you in obtaining the best possible tax outcome.

A tax preparer is an organized and goal-oriented person who advises clients regarding their tax needs.

Job Description

A tax preparer is supposed to analyze the tax data given by the client and then prepare and submit tax returns accordingly.

It is the responsibility of tax preparers to maintain client confidentiality, provide outstanding service to encourage repeat business, and assist clients with future tax planning.

Tax preparers must be knowledgeable of legislation and rules, give exceptional service to clients, and adhere to the company's high standards to be successful.

A top tax preparer will be meticulous in their work and possess strong communication skills, both verbally and in writing, to deal with correspondence from clients and tax authorities.

Responsibilities

  • Organizing appointments with potential clients.
  • Organizing appointments with potential clients.
  • Guiding clients regarding the tax preparation procedure.
  • Filing and lodging tax returns for individuals and businesses.
  • Taking care of correspondence from clients and taxing authorities
  • Double-checking all documents for reliability and consistency.
  • Providing clients with tax preparation for the future.
  • Analyze the tax data given by the customer to optimize the result.
  • Signing individual and corporate clients' income tax returns on their behalf.

Difference between Accountant and Tax Preparers

Let's talk about the differences between accountants and tax preparers to better understand what is a tax preparer?

Accountants - Accounting professionals often have a significant amount of education and experience in accounting. A professional must pass an exam that tests a broad range of accounting skills to become a professional accountant.

There are a variety of tasks involved, including performing audits, balance sheets for businesses, government agencies, and nonprofit organizations, understanding corporate governance structures, and handling various types of business regulation, including taxes and licensing, and other requirements.

Tax Preparers - Tax preparers focus on tax issues, but they may not always have extensive educational experience as accountants or other financial professionals.

Because the quality of tax preparers can differ significantly, it is beneficial to explore the different types of tax preparers.

Types of Tax Preparers

AFSP (Annual Filing Season Program) - These preparers are approximately on the same level as state-certified tax preparers, if not somewhat higher since they typically have more stringent continuing-education standards.

Enrolled Agents - Enrolled agents hold the highest level of certification awarded by the Internal Revenue Service. To obtain EA status, they must pass a demanding IRS-sponsored exam and a background check, and then they should also meet continuing-education criteria to keep it.

CPA (Certified Public Accountant) - CPAs are frequently the professionals of choice for those who have a complicated tax situation. In contrast to enrolled agents, certified at the federal level, they are certified at the state level.

Contact BusinessRocket if you need a tax preparer that can assist you in preparing and filing your taxes.