Whenever you turn important work over to someone else, you want to have confidence that they're going to do it right. It's scarcely more vital to have correct information than on your tax forms. A single mistake could potentially lead to serious trouble, including audits, fines, and more. But doing it yourself is an even greater risk. The trick is to understand what it really means to be qualified, and to rest secure in the knowledge that truly qualified individuals know how to complete your forms properly and thoroughly.

Formal College Education Not Required

Competently preparing and filing returns doesn't require college courses on the subject. They may be available at some places (typically community institutions rather than four years) but they are not required. It is more common to need that kind of formalized education for purposes like becoming an accountant, which is more in-depth.

Short-Format Classes Are More Common

Instead of a lengthy seminar, it's much more commonplace for would-be preparers to attend classes that are often sponsored by prep companies. At both H&R Block and Liberty Tax, preparer courses are available throughout the year. They may be offered without cost for instruction in some situations, although that depends on the company providing the service.

These classes typically start out with a basic introductory series. After that, it's common for more specialized instruction to be offered. This allows aspiring prep professionals to hone their skills with a specific type of return.

PTIN

Once an individual has completed their education, they will apply for a Preparer Tax Identification Number, or PTIN. This is something that is required by federal law for anyone who wants to prepare taxes for a living. In order to qualify, aspiring individuals must pass a test of comprehension and skill. The goal is to ensure that there is a federal standard to which all people must adhere. This registration program also increases the amount of control that the government has over preparers. It increases oversight throughout the field and improves the process for everyone.

Specialists

Beyond the average preparer there are three types of specialists: enrolled agents, tax attorneys, and CPAs. All three serve different functions, although none of them are likely to prepare returns for the average individual. They're much more likely to specialize, either tackling uniquely difficult scenarios or (more commonly) assisting those who have not paid, have failed to file or filed incorrectly, or are struggling with IRS actions. These situations are usually beyond the ability of an individual with a PTIN, who is simply qualified to process forms and nothing more.