What Happens In The Tax World At The End Of A Calendar Year?
Something interesting happens during this time of the year. First, all those hundreds of IRS tax forms and their related instructions that we know about, are mostly getting updated and those newer versions start getting released. Generally, the IRS starts releasing these forms around Thanksgiving time. That’s when the tax preparers expect to see the new versions of forms. Tax professionals look forward to this time of year as it clarifies a lot about previously confusing changes to the tax law.
Second, Congress and the political administration have to deal with expiring tax provisions. In other words, there are temporary tax provisions every year that are implemented as a result of the current economic lay of the land. It’s quite common to have certain provisions that are created for just one tax year. When Congress comes into session, around Thanksgiving till New Years (January 1st), the lawmakers have to decide which tax extenders will be left to expire and which laws will be extended. This process affects a lot of the final law, and influences the final provisions which are going to go into effect in January of the new year which is when the tax season starts.
When Do Students Learn About The Latest Provisions On The Tax Law?
As an IRS approved provider of continuing education of tax preparation, this is the time of year when National Tax Training School offers annual updates and refresher courses. Additionally, when we teach about 2022 forms which have not been available up until this point, the fourth quarter is the time when we start integrating the newer forms into the courses. On a related note, tax software developers are extremely busy at this time of the year because they have to integrate these new forms into their offerings. These companies have a small window from Thanksgiving until the end of the year to update their software and tax programs and integrate the new forms and calculations. All this is what happens behind the scenes in the tax world at this time of the year.
What Are The Advantages Of Starting A Career In Tax Preparation During This Time Of The Year
Professionals thinking about a new career in tax preparation at this time of the year have the advantage of actually becoming familiar with things that are current, live and happening right now. In other words, one is dealing with the practical and timely vs. the theoretical. It’s much more imminent given that things are happening just around the corner. Congress at this time is passing laws, and figures, rules and numbers are getting finalized. Individuals that are ready to learn taxation are actually more tuned in, and can relate much better to the news and to the changes.
At this time of the year, as we get close to tax season, people start asking tax questions. Clients of tax professionals seek tax advice pertaining to this current year and also how to prepare themselves for the upcoming new year.
One has to position themselves at the onset of the upcoming year regarding their spending and purchasing as to how it affects them financially in their tax bracket. Everyone wants to make sure that their business expenses, investments, earnings and income are set up properly to their advantage for the upcoming year.
As an example, if there are any questions regarding business deductions that are set to expire, the tax preparer would advise to spend more now since they will get the immediate benefits vs. waiting to expense after January 1st when they are no longer valid.
Should A Tax Preparer Participate in Continuing Education At This Time of the Year?
Yes. The IRS has designed a voluntary continuing education program called the Annual Filing Season Program (AFSP) and National Tax is an approved provider. The program helps the practicing tax preparer keep up with all changes, reinforces their knowledge of common tax provisions and reminds tax professionals of their ethical responsibilities. Although this is not required by law, there are significant benefits to the course.
Benefits of Participating in Continuing Education:
- Becoming current with changes to the new tax laws
- Getting listed in the IRS directory for tax preparers
- Better representational rights for their clients before the IRS
In order for tax preparers to take full advantage of this offering, the program needs to be completed by December 31st.
What Bookkeepers Shouldn’t Miss This Tax Season
Bookkeepers, as trusted advisors, are very much involved at this time of year in handling, managing and closing books for the end of the year. Additionally, Bookkeepers are very much involved in people’s personal finances and preparing for the upcoming tax year. Each one of these clients are required to have their taxes filed, so it would be understandably beneficial for the bookkeeper to offer this service as well. Both bookkeepers and clients want to start a new year having everything in place.
Why Is It Important To Be Prepared For The Tax Season
Upon every upcoming tax season, Tax Preparation and CPA firms need to be educated and gear up for an increase in new customers and clients. National Tax prepares the preparers to prepare. At this time of year, CPA firms with a potentially heavy workload, are seeking and searching for newly trained professionals in the industry. They’re going to hire you for the upcoming tax season, you’re going to get benefits and you will gain a lot of experience. Professionals might start on the lower rung of the ladder, but it’s the best time to be hired by these CPA firms.
Why Insurance Agents and Brokers Make Good Tax Preparers
Similar to Bookkeepers, Insurance Agents and Brokers are trusted advisors that have an existing client base. This access to insurance policies and financial portfolios enables them to be familiar with their client’s finances, investments and incomes. This access provides another good potential opportunity to offer tax preparation service. They might find that their clients are just going to some untrained tax preparer, or some unreliable and unattentive group of tax preparer franchises. Alternatively, these agents are able to offer them personalized and responsible attention that will serve them best.
Why It’s Not Too Late To Enroll To A Tax Preparation Course This Time Of The Year
The duration of the National Tax Federal Income Tax course is about 150 hours and anyone can complete this in about 8 to 10 weeks. When you do the calculations and you think like a tax preparer, dealing with numbers, we estimate 150 hours. If you apply yourself for about two hours daily, then it’s very doable in eight weeks. All in all, you should approximate around 60 days or two months and you will have ample time to complete the course.
When you invest two hours a day, a number of things can happen. First, you might need more time. You might be able to devote more time to this if your schedule allows. On the other hand, if your schedule doesn’t allow for 2 consecutive hours, then it can be broken down to different times of the day. Perhaps a little bit in the morning or evening or whenever you have time, perhaps on the weekends. Second, it depends on how well you grasp the issues at hand. Certain areas of the tax course can be completed at a much quicker pace. Other aspects require you to pay more attention.
Tax season officially starts on January 1st. Technically though, the IRS does not release some of the forms before January 1st. This can go well into January. Tax preparation software developers find themselves releasing and finalizing product updates well into the month. Generally, clients are not yet seeking tax preparation services, so you have more time. You have the advantage of learning and practically being involved in it while it’s happening. So when January 1st arrives, you are ready to start. By this time, you have already learned quite a lot to be able to service clients. You might not have wrapped up your training yet, but you’re becoming more aware and alert to finish it and apply what you’re learning.
Is It Recommended To Start Your Own Tax Preparer Business Rather Than Starting By Working For Others
There are obviously two options: either you start up your own tax practice or work for a CPA firm or any tax preparation firm. At National Tax, we like to encourage students to pursue independent careers and start up their own businesses. There are a lot of advantages to owning your own business; opportunities, flexibility, independence, and the potential to build a solid growing client base. However, some people find this too much of a burden, and prefer to work for others. Over all, it really depends on your personality, how ambitious you are and how you approach it. Whichever way you decide, this is the time of the year to make it happen.
It is important to note that whichever way you decide, there is no pressure since it’s not necessary that it has to be full time. When we talk about going out on your own, you should start with your own taxes, which you’re going to need to do very shortly for yourself. Then comes family, friends, and acquaintances who will all need these services fulfilled. Since there is a personal connection, you have a much better opportunity reaching out to them as an independent tax preparer.
Summary: Looking Towards a New Year and a New Career
In this article we discussed what happens in the tax world at the end of a calendar year. At National Tax Training School, we plant seeds to encourage our students to prepare themselves for a better career, a better income, a productive future and a more fulfilled life. Learn more about our organization by visiting our website or just give us a call.
About National Tax Training School (NTTS)
National Tax Training School was founded in 1952 and over the past 60+ years has grown into the most recognized and respected distance learning institution dedicated to training its students in US federal taxation. NTTS is dedicated to providing Federal Income Tax Courses, IRS Annual Filing Education, Tax Preparation Classes, and IRS Annual Filing Season Programs.
Summer and Fall 2022, Back To School, Back To Work, New Career
Summer is the time when most people take vacation and think about what they are going to do after the Labor Day Weekend, which is the sign of when summer usually ends. People think about going back to school, their careers, their pocketbooks, inflation, and how costs are rising. Especially during the summer of 2022 when inflation was at a historical high and gas prices surpassed over $5.00 a gallon. During the time period as we approach Labor Day, many people find themselves in need of a new career and a new job. Many people want to start a new job right after Labor Day and the others are too stressed to push it off any longer and prefer to start working before the summer ends so that they are settled. A new career in tax preparation is timely right now, because now is when people start preparing not only for a new financial year that starts in September, but also they want to be ready for January 1, 2023.
Why A Career In Tax Preparation Is Timely Right Now
Tax season officially starts in January when people start preparing their own IRS federal and state tax returns. During this time, accountants and CPAs usually request statements and documents from clients. This is also the season and month when companies send out W2 forms and 1099s to their employees. The Fall is the time to pursue education, training, and position yourself in order to be ready for the upcoming tax season. Once January 1st comes around, you want to have your name and your tax business shingle hanging out for all to see. You also want to have your advertising and marketing in place because that is when everyone becomes aware that they need help with their taxes for the year. You have to have ample time to learn, practice and train to be prepared to start, and confident that you are ready to provide these important IRS tax preparation and financial services.
Who Should Consider A Career In Tax Preparation?
What makes a good candidate to enroll In tax preparation courses? Anyone that already has a knack for numbers should consider a career in tax prep. A person that enjoys making calculations and who is creative at figuring out strategies that save money, are great candidates. Detail oriented people who like to read the fine print and search around for bargains, calculating and comparing numbers and prices, utilizing spreadsheets with columns consisting of pros and cons are great prospects for a career in tax preparation. Highly organized individuals will immediately realize that they will be very successful in this type of career. The mindset of working with numbers, envisioning a better way to work with them and ultimately coming to a money-saving conclusion, creates the most successful candidate in tax preparation.
Who Is Eligible To Be A Tax Preparer?
To become a tax preparer, you do not have to be a college graduate. With a GED and/or a high school diploma, one who does well in math has the potential of succeeding in the field of tax preparation. One does not have to be a genius or an academic wiz to be successful, you just have to be prepared to concentrate and deal with intricate numbers and details. National Tax Training School teaches students from the ground up. With any background, path of education and average IQ, one is destined to thrive in this exciting field. One who is ultimately dedicated to learning tax preparation and gets the proper foundation training, will develop great experience in no time.
Why Is Experience The Best Education?
To become an artist, you have to have it in you. With tax preparation, you must initially be dedicated to learning. Then, after a short while of working in the field, with each client and each scenario of saving people money, one gains the most valuable experience.
What Are The Resources Needed To Start A Career In Tax Preparation?
People with limited resources can still start learning tax preparation today. You don’t have to invest a significant amount of money, and with a surprisingly minimal investment one may enroll in our course. Tax software is another investment preparers will need to purchase.
Students can access the online learning system from the comfort of their home, a cafe, coffee shop or anywhere at any time. With basic Internet, wifi access and a laptop or smartphone, students enrolled in the course will conveniently be able to complete their training and studies that will last them a lifetime.
When Should One Start Training To Become A Tax Preparation Professional?
One will need anywhere from a few weeks to a few months in order to be ready for Tax Season. National Tax Training School is constantly updating the tax preparer course, and in fact just finalized the most current version and released it to all recently enrolled students. These students will be getting the most up to date version of the course. That’s why, NOW is the optimal time to enroll. NTTS constantly strives to add timely updates to the curriculum as a result of Congressional changes to the tax laws. In fact, President Biden just passed a bill called the Inflation Reduction Act. Although it may not have a significant impact on basic United States taxation, it does indeed have tax ramifications. Now is the time to become familiar with all of the new and updated changes that are happening AND going to happen. Usually, these updates get implemented by Congress at this time of the year when Congress returns to office after summer vacation. Congress then focuses on these acts, tax provisions, and extensions of previous revisions.
How Long Does The National Tax Preparation Program Course Run?
The course is 150 hours of self paced study. The student is in the driver’s seat and sets the pace. If we break it down by two hours daily, it’s about 10 weeks worth of program. If a student starts today, by the end of the 2nd month or sometime in the 3rd month, they should comfortably be able to finish the course. With all this under consideration, finishing the program will likely take one 8 – 10 weeks. Some people give themselves even more time to feel confident so within 3 months they are ready to start taking on clientele.
How Can One Start Their Own Tax Preparation Business?
First, one will need time after finishing the National Tax Training School tax preparation course in order to absorb and review the material they have learned. Some professionals will want to find office space, sublet or work from home. It is also recommended to have enough time to advertise and to do some research on your local and regional market.In the beginning of the tax season, expect to be busy while also maintaining a business development strategy. You will not want to turn away any potential clients.
Building a Profitable Tax Practice
The Guide Book (https://nationaltax.edu/publications/building-a-profitable-tax-practice/) we give out to students helps them build their tax practice business. The National Tax Training School guide book, “Building a Profitable Tax Practice” is written by National Tax and it covers everything you need to know on how to successfully establish and maintain a tax preparation business.
Topics covered in the book include:
- IRS requirements
- Office technology
- Successful marketing strategies
- Staff hiring
- Ethical responsibility
- Billing and Fee structure
- Collections
- Handling IRS tax audits
- Professional development
- Mergers and acquisitions
- Reporting
Is A Career In Tax Preparation Stable?
Every US citizen is required to file taxes, so a tax preparer offers essential services that everybody needs. When tax clients are satisfied, they will depend on the professional for their taxes year after year and even refer their friends and family. As one consistently provides tax preparation services, they build on existing and return client work experience as their client base grows. Expanding a business by establishing a professional network and concentrating on retention makes the business even more stable.
How Profitable Is A Career In Tax Preparation?
A tax preparer has unlimited potential to grow his or her income as much as they are willing. As mentioned above, everyone needs their taxes done. A tax preparer will always be able to provide services and they can work as much as they want and as little as they want. One can work part time and still be very busy during Tax Season.
Tax Preparer vs. Bookkeeper/ CPA/ Accountant?
A tax preparer 100% COMPLEMENTS being a bookkeeper, CPA and/or accountant. There is no conflict whatsoever and if anything, the professional and their clients benefit from their knowledge and experience greatly.
An accounting degree isn’t for everyone. Though there are plenty of benefits over tax preparation, getting an accounting degree requires much more time, effort and a significant investment.
Accounting also involves a wide range of financial services such as financial statements, business regulations, corporate structuring etc. whereas a tax preparer focuses on the tax aspect. Preparing tax returns, providing tax related advice and skillfully concentrating on finding tax savings is a major benefit of taking our tax prep course.
A significant percentage of CPAs certainly have knowledge of tax preparation, but they aren’t necessarily experts. They usually have staff and employees like students of ours, who do their tax prep work for them. A CPA is a general term for someone that went to college and received a degree in accounting. A CPA is a designation, and that means working on the overall finances of individuals, corporations and businesses.
Students who are not yet ready to start a business on their own, will often end up with great opportunities. Many CPAs and accounting firms are constantly seeking to hire individuals with tax preparation expertise to fulfill their client needs. This is quite common and especially true around tax season.
All in all, becoming a tax preparer is quite advantageous and beneficial since CPAs are not only looking for these professionals, but also are looking for partners.
Bookkeepers will find that having professional tax preparation knowledge will greatly add to their overall offerings and services. They naturally deal with many clients who ultimately need their taxes completed and filed. With the addition of a tax preparer on staff, bookkeepers are able to offer to their existing client base financial services as well as tax help.
Why Is Tax Preparation A Satisfying Career?
There’s nothing more satisfying and empowering than when you immediately show people how to save money. When you help US Citizens and show savings in their taxes, the money you save them is money in their pocket. All professionals desire their clients to be pleased. When one shows a client how to move around personal and corporate finances with security, they gain a satisfied customer.
Who Can Establish a Thriving Tax Practice?
Many ask if they need prior experience and skills in order to succeed in a career in tax preparation. Former mechanics, school teachers, salespeople, homemakers, and employees from different industries have all thrived in the field of tax preparation. So when one asks if this path is right for them, National Tax Training School replies ABSOLUTELY!
About National Tax Training School (NTTS)
National Tax Training School was founded in 1952 and over the past 60+ years has grown into the most recognized and respected distance learning institution dedicated to training its students in US federal taxation. NTTS is dedicated to providing Federal Income Tax Courses, IRS Annual Filing Education, Tax Preparation Classes, and IRS Annual Filing Season Programs.
Why Become a Tax Preparer?
Many students enter adulthood without the slightest clue of what they want to do with their professional lives. Some harbor dreams of grandeur while others prefer fortune to fame. However, a more practical approach to planning one’s career can ensure much greater job satisfaction.
When choosing a career path, you need to consider two things: what you’re good at and what you enjoy. The so-called “dream job” is a myth, or at least, it’s different for every person. We might all enjoy the accolades and earnings of a top-notch actor, but how many of us are really suited to perform on command? Some might find such work extremely stressful and terribly unfulfilling.
If you’re looking for a profession that features stability, flexibility, and high earning potential, there are several reasons to consider becoming a tax preparer, especially if you’re proficient in math, you exhibit organization and attention to detail, and you enjoy working with clients and helping them save money. Here are some of the many benefits you stand to gain in the process.
1 – Gainful Employment
Money may or may not make the world go ’round, but it certainly can keep us comfortable, ensuring a roof over our heads and food on the table. Tax preparation can provide you with gainful employment for the rest of your life.
People are always going to need help with their taxes. Most of us simply don’t have the time, energy, or inclination to learn how to prepare our own income tax returns, especially since tax codes change frequently.
For this reason, reputable and reliable tax preparers are always in high demand. Naturally, you’re bound to be much busier at certain times of year, as when annual income tax returns are due in April, but you can also find ways to sustain your workload throughout the year by working for businesses, keeping books and filing quarterly estimated taxes, for example.
2 – Job Security
If the recent recession taught us nothing else, we learned the value of a stable profession. Not every job can offer security, but tax preparation is something nearly everyone needs help with at some point, which means tax prep professionals will always be in high demand.
Taxes are confusing, and most people have better things to do with their time than learn the ins and outs. They’re happy to leave it to professionals like you, especially since you have the knowledge to help them find ways to reduce what they owe and even get money back in some cases.
3 – Flexible Work Options
This is one major boon associated with becoming a tax preparer. You have so many options when it comes to your schedule. For example, you could end up working full time for a tax prep company, or alternately, simply working for yourself from home.
You could take on clients just during the busiest tax season, or maintain business contracts year-round, and you have the option to decide how many clients you want to serve. You could work full-time, part-time, seasonally, or to supplement another profession.
Tax preparers often enjoy the ability to manage their own schedules. Whether you prefer working days, evenings, or weekends, you can set appointments with clients on a schedule that works for you, allowing you to accommodate other work, schooling, or familial obligations, just for example. How many other high-paying jobs can you say that about?
4 – You Can Learn Remotely
Earning your certificate in tax preparation is as easy as taking online tax courses through a licensed and accredited tax school that offers clear and comprehensive course work, as well as skilled instructors and support staff. This is an ideal learning environment that gives you a measure of control over your learning schedule and allows you to avoid a costly and time consuming commute.
If you’re already tied to another job, you’re raising a family, or you’re simply looking for a convenient and flexible educational opportunity, the option to study and earn your certificate in tax preparation from home or on the go is a fairly attractive proposition.
5 – Earn a Certificate Quickly and Get to Work
When you take online tax preparer courses, you could earn your certificate in as little as 8-10 weeks, depending on how committed you are to the process. This means you could get to work and begin earning a living and building your professional reputation in just a couple of months.
You don’t need any previous experience to begin online tax courses, although many people working as bookkeepers, accountants, and lawyers are keen to earn tax prep certification. All you have to do is sign up, complete your coursework, and earn your certificate in a few short weeks.
6 – Lifelong Knowledge and Skills
You might find that you really enjoy tax preparation and make it your lifelong profession. Or you might see it as a stepping stone in your career trajectory. You may do it for a while and move on to other pursuits.
However, the knowledge and skills you develop will stick with you for the rest of your life. You might only use them when properly preparing your own tax filings or helping out family members and friends, or they may serve you well in all of your professional pursuits.
Many businesses see this type of knowledge and experience as a major bonus and it could give you the edge when applying for future positions, even those unrelated to tax preparation. Basic accounting and tax preparation skills are something everyone should have, but few people bother to learn, which will make you a valuable asset to any employer.
7 – Personal Fulfillment
Most adults place a premium on earnings over job satisfaction. What you’ll come to realize with time is that money isn’t everything. If you spend enough time working you’ll find that gaining a sense of satisfaction from your job is worth its weight in gold, so to speak.
When you make all the numbers match up or find a way to help clients save money or see a larger tax refund, you’re going to gain a sense of personal fulfillment that you might not get from other jobs. This is a welcome addition to whatever money you earn in the course of your professional pursuits.