Law & Legal & Attorney Tax Law

State of Virginia Tax Preparer Requirements

    • A professional tax preparer can relieve your tax paperwork burden.tax forms image by Chad McDermott from Fotolia.com

      Preparing your income taxes can be a real hassle for any individual. Whether you have a large corporation and a sizable income or are working part time, you will have to take the time to compile receipts, pay stubs, and other documents for the year, then apply the numbers to government forms that determine whether you owe money to the government or get a refund. Hiring a tax preparer is an excellent way to receive competent help with your taxes, and in Virginia, many people choose to do that.

    Licensing

    • Like many other states, Virginia has no official licensing laws for tax preparers. Only two states, California and Oregon, have licensing requirements for tax preparers. A certified public accountant, or CPA, on the other hand, does have to be licensed, which means he must meet educational requirements and pass exams before he can practice.

    Enrolled Agents

    • While there are no official requirements to become a tax preparer, if you wish to become an enrolled agent, there are additional qualifications required. Enrolled agents must demonstrate either an educational background in tax preparation or accounting, or have work experience in the field, before they can become members of the National Association of Tax Professionals. Enrolled agents are qualified to represent you in court if the return they prepare for you undergoes IRS scrutiny or contains errors.

    Brokerage Training

    • Many major brokerage and tax preparation firms also offer specialized training to their tax preparers. If you wish to work for one of these companies, you generally will be required to undergo the training program unless you have tax preparation experience. Training programs vary but may last four weeks to six months.

    Truthfullness and Signatures

    • When preparing tax returns, tax preparers are required to assert the truthfulness of all statements. While you are not required to audit clients who come to you or to demand to see receipts for business expenses, you do need to assert that, to the best of your knowledge, the tax return you are preparing is accurate. You are required to sign all tax returns. Filing false tax returns can subject you to criminal penalties and fines by the IRS.

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