How to become a tax preparer in Maryland
If you are interested in a career in tax preparation and want to work in the state of Maryland, there are several steps you need to follow to become a qualified tax preparer. The process involves obtaining the necessary certifications, understanding the legal requirements, and gaining relevant experience. In this article, we will guide you through the steps to become a tax preparer in Maryland.
1. Understand the Requirements
Before you start the process, it’s important to understand the legal requirements for tax preparers in Maryland. According to the IRS, all tax preparers must have a Preparer Tax Identification Number (PTIN). Additionally, certain individuals must obtain a certification or pass an exam to be considered a Certified Tax Preparer (CTP) or an Enrolled Agent (EA).
2. Obtain a PTIN
The first step in becoming a tax preparer in Maryland is to obtain a PTIN from the IRS. This number is required for all tax preparers and can be obtained online through the IRS website. The PTIN is free and is valid for one year, but you can renew it annually.
3. Consider Certification Options
In Maryland, there are two main certification options for tax preparers: Certified Tax Preparer (CTP) and Enrolled Agent (EA). A CTP is a tax preparer who has passed the IRS’s competency examination and meets certain experience requirements. An EA is a tax professional who has passed a comprehensive examination and has demonstrated expertise in tax matters.
4. Pass the CTP Exam
To become a CTP, you must pass the IRS’s Competency Examination for Tax Return Preparers. The exam covers a variety of tax topics, including individual income tax, business tax, and tax law. You can register for the exam online through the IRS website and take it at an approved testing center.
5. Gain Experience
After passing the CTP exam, you will need to gain experience in tax preparation. The IRS requires that you prepare a minimum of 100 tax returns for individuals or businesses during the three-year period preceding your application for a CTP certification. You can gain this experience by working under a CTP or EA, or by working in a tax preparation firm.
6. Apply for Certification
Once you have passed the CTP exam and gained the required experience, you can apply for your CTP certification. You will need to submit an application to the IRS, along with proof of your exam results and experience. The IRS will review your application and, if approved, issue you a CTP certification.
7. Stay Current
To maintain your CTP certification, you must complete 15 hours of continuing education every three years. This ensures that you stay up-to-date with the latest tax laws and regulations. Continuing education can be obtained through various providers, including tax preparation firms, educational institutions, and professional associations.
In conclusion, becoming a tax preparer in Maryland requires a combination of education, experience, and certification. By following these steps and staying current with tax laws, you can build a successful career in tax preparation.
