With growing business activity and a streamlined individual tax structure, tax preparation represents a stable, rewarding career choice for detail-oriented professionals in Arizona.
This article will explore how to launch a tax preparing career in the state during 2024 and beyond across private practice, remote, and employed preparer roles spanning simple to complex tax filing obligations.
Getting Relevant Education and Background
While no standardized prerequisites exist to become an Arizona tax preparer, foundational education lends essential knowledge and credibility that clients value:
Tax Preparation Certificate Programs
Reputable tax prep certificate programs, like the 130-hour Registered Tax Return Preparer (RTRP) course, equip learners with practical tax knowledge needed for W-2/1040 prep and assisting small businesses:
- Tax code and form overview
- Filing processes and timelines
- Income/deductions and adjustments
- Tax software usage
- Ethics and best practices
Programs take 1-6 months online or in-class and cost $200-$1000+. Some community colleges also offer tax prep qualifications.
Bachelor’s in Accounting/Finance
While not compulsory, a relevant bachelor’s degree in areas like accounting, finance or business administration reinforces tax environment understanding and signifies dedication for those seeking senior preparer or advisory roles.
Ongoing Development
Tax law intricacies, technology changes and reform necessitate ongoing development even for seasoned preparers through CPD courses, professional body resources and refresher workshops.
Getting Licensed in Arizona
While no universal license applies to all tax preparers, certification adds credibility and eligibility for complex filing:
PTIN Requirements
The IRS mandates all paid tax preparers have a Preparer Tax Identification Number (PTIN) with annual renewal. The initial $35 PTIN application and $35 annual renewals are managed online through the IRS PTIN system.
State Licensing/Certifications
Voluntary licensing is also available in Arizona, like the Licensed Tax Preparer (LTP) credential overseen by the Arizona State Board of Technical Registration for preparers without CPAs.
Candidates must pass approved exams, prove tax prep experience and undertake ongoing development.
Enrolled Agent Status
Administered by the IRS, Enrolled Agent (EA) certification involves extensive testing across all aspects of taxation to demonstrate specialized preparation expertise for intricate tax situations. Continuing education also applies to maintain active EA status.
Finding Tax Preparer Job Opportunities
Once adequately qualified, there are abundant tax preparer jobs in Arizona spanning:
Private Practice
Launching an independent preparation firm or adding services to existing accounting practices allows seasoned preparers to serve select clients. Considerable marketing efforts are vital alongside managing tax software subscriptions and office expenses.
Remote Preparation
Remote preparation roles are growing in popularity given Arizona’s business-friendly environment. Larger national tax chains like H&R Block and Jackson Hewitt recruit remote preparers to serve clients countrywide, especially during peak tax season.
Tax Provider Firms
Midtier Arizona tax providers like AZ Taxes and Arizona Tax Team hire knowledgable tax preparers locally to serve resident filing needs. Larger national tax chains also maintain many Arizona branches.
CPA Firms
Larger CPA practices retain junior preparers to assist with individual and business tax filing processes alongside handling tasks like bookkeeping and payroll. This offers a path to progress towards senior accountant or partner advisory roles long-term.
Maximizing Earning Potential
Arizona tax preparers can increase their profitability through:
Specialization
Developing expertise in niche offerings liked expat taxes, senior services, IRS audit defense or business tax credit planning allows preparers to command higher billing rates and client loyalty.
Upselling Services
Preparers can boost revenue by introducing additional solutions around tax advice, representing clients undergoing IRS audits and providing bookkeeping or payroll services that integrate with tax preparation.
Peak Season Markups
Applying surcharges to tax preparation quotes leading up to April filing deadlines when demand surges allows preparers to capitalize on peak influxes. Communicating this early is important.
Premium Tax Software
Preparers reliant on tax software for accurate preparation can justify billing rate increases by utilizing more advanced systems like UltraTax CS, ProSeries, TaxAct Premium or Lacerte.
How much does it cost to become a certified tax preparer?
The cost to become a certified tax preparer in the U.S. typically ranges from $300 to $3,000 depending on the type of credential pursued and whether you complete self-study or formal courses.
For example, the costs involved with becoming an IRS Enrolled Agent, seen as the most extensive tax preparer certification, involves about $1,000-$2,000 to cover enrollment exam fees, preparatory materials, continuing education requirements, and state licensing expenses in applicable locations.
Overall most recognized tax preparer certifications cost $500 to $3,000+ factoring study materials, exam fees, and license or credential renewal costs.
FAQs
How long does it take to become a tax preparer in Arizona?
What does a tax preparer earn in Arizona?
What qualifications do you need to be a tax preparer?
Do you need a PTIN to be a tax preparer in Arizona?
Is tax preparation a dying industry?
Conclusion
Arizona’s expanding economy, popularity for retirement and tailored tax structure creates accessible tax preparation roles for certified candidates.
Opting for rigorous preparer education, credentialing and niche specialization allows aspiring entrants to command healthy earnings growth.
Joining existing CPA firms, tax provider networks or launching independent practices provides fulfilling preparer career potential.