How to Become a Tax Preparer
Every year, thousands of professionals enter the field and begin building rewarding businesses helping others file their returns. Whether you're pursuing part-time seasonal work or launching a full-time tax practice, one of the first steps is understanding how to become a tax preparer.
In this guide, we’ll walk you through the IRS registration process, key requirements, and how Drake Software®, an authorized e-file provider, can help you start strong.
Step 1: Understand the Role of a Tax Preparer
A tax preparer is a professional authorized to help prepare and file income tax returns. While there are different levels of credentials (such as CPAs, EAs, and AFSP participants), almost anyone can become a paid tax preparer if they meet the applicable requirements. Talk to other tax professionals and do external research on the career.
Step 2: Complete IRS Tax Preparer Registration
To legally prepare federal tax returns for compensation, the IRS requires:
Get a PTIN (Preparer Tax Identification Number)
Visit the IRS PTIN system at rpr.irs.gov to create an account and apply.
Cost: $30.75 (as of 2025)
Optional: Join the Annual Filing Season Program (AFSP)
This voluntary program boosts your credibility and includes your name in the IRS public directory of tax return preparers.
Stay Compliant with Continuing Education
Non-credentialed preparers in the AFSP must complete 18 hours of tax CPE annually, including ethics and tax law updates.
Step 3: Choose IRS-Approved Tax Software
As a new preparer, one of your biggest decisions is which software for tax preparers to use. Software from an authorized e-file provider may help maintain accuracy and enhance data security.
Why Choose Drake Software?
Drake Tax® is trusted by thousands of professionals for its:
- Fast, accurate return preparation
- Easy learning curve for beginners
- Built-in diagnostics and compliance tools
- Flexible packages
Step 4: Train and Practice
Before the season starts, take time to learn the software and review IRS publications, such as Publication 17 and Pub 1345. Drake Software offers training videos, tax specific webinars, and practice returns to help you hit the ground running.
Step 5: Start Preparing Returns
Once you have your PTIN, software, and basic training, you can begin accepting clients. As your experience grows, you may decide to:
- Pursue an EA (Enrolled Agent) designation
- Offer bookkeeping or payroll services
- Expand to business or estate returns
Why Now May be the Best Time to Become a Tax Preparer
Tax preparation is a high-demand, recession-resistant field. With the 2025 filing season approaching, there's still time to get registered, trained, and ready.
Becoming a tax preparer doesn’t require a finance degree or accounting license—but it does require the right mindset, compliance knowledge, and tools. To learn more, subscribe to our blog.
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