Straight answers before you start.

No IRS rule requires prior experience to prepare returns for pay, but accuracy and due diligence rules apply from your very first return. New preparers should plan on solid training, practice returns, and a support system before the season starts. We walk through training options during your consultation so you can choose a path that fits your experience level.

At minimum you need a current PTIN, professional tax software, and a way to e-file, either with your own EFIN or by working under an authorized provider. You should also have a business setup (entity, EIN, bank account), a written information security plan, and any state registration your state requires. Our Start Your Tax Business guide covers each step in order.

It varies widely. Typical costs include your PTIN fee, software or a service-bureau package, business formation and licenses, insurance, equipment, training and marketing, and the amounts depend on your state, setup and goals. We don't publish a one-size-fits-all number; your package options and pricing are confirmed during the consultation and enrollment. See Pricing for the packages we offer.

There is no guaranteed income. Results depend on how many clients you serve, what you charge, your expenses, your location, and your effort. Any calculator on this site is an illustration of gross preparation fees, not a prediction of profit.

A Preparer Tax Identification Number (PTIN) is required for anyone who prepares or assists in preparing federal returns for compensation. You apply online through the IRS PTIN system, and the IRS says most first-time applicants finish in about 15 minutes. The fee for 2026 is $18.75 and is non-refundable; PTINs expire December 31 and must be renewed every year, so confirm the 2027 fee when you renew.

To e-file returns under your own business, your firm needs an Electronic Filing Identification Number (EFIN) from the IRS. You apply through IRS e-Services after verifying your identity, and non-credentialed Principals and Responsible Officials must be fingerprinted. The IRS says to allow up to 45 days for approval, so for the 2027 season apply in October or early November. See EFIN vs PTIN for how the two differ.

The AFSP is a voluntary IRS program for preparers who are not attorneys, CPAs or enrolled agents. You complete 18 hours of continuing education, including a six-hour federal tax law refresher course with a test, and consent to certain Circular 230 obligations. In return you get a Record of Completion, a listing in the IRS public directory, and limited rights to represent clients whose returns you prepared and signed.

Some states do. For example, California requires registration with CTEC (60-hour course, $5,000 bond, PTIN), New York requires preparer registration, Maryland registers individual preparers through a state board, and Oregon licenses tax practitioners. Requirements and exemptions change, so check with your state agency and every state you file in.

If you are paid to prepare a return claiming the Earned Income Tax Credit, Child Tax Credit/Additional Child Tax Credit/Credit for Other Dependents, American Opportunity Tax Credit, or Head of Household status, you must ask the right questions, keep records, and complete Form 8867. The IRS penalty is $665 per failure for returns filed in 2027. Keep the supporting records for 3 years.

A refund transfer is offered by a bank partner, not the IRS or the preparer. The client's refund goes to a temporary bank account, the bank deducts the authorized preparation fees and its own product fee, and the rest goes to the client. These products are optional for clients and subject to eligibility, approval and fees; our bank partner and terms are confirmed during enrollment.

Bank products are provided by an approved bank partner, which sets the eligibility rules, approval process and fees. Your office enrolls with the bank through your software or service bureau. We confirm which bank partner and terms apply to your package before you enroll.

You'll use professional tax preparation software with e-file, state returns, and bank-product integration. The specific software, features and return types included depend on your package and are confirmed during your consultation. See Software & features for an overview.

There are two common ways. Clients can pay your preparation fee upfront by cash, card or other payment method, or, where they qualify and choose to, have it deducted from their refund through a bank product, in which case the bank sends your fee to you after the refund arrives. Fees collected through bank products depend on the refund being issued, so clear policies matter.

Common approaches are per-form pricing, flat fees by complexity tier, or a minimum fee plus add-ons. Base your prices on your costs and time per return and on what local preparers charge, and give clients an estimate before you start. Some states and cities, including New York, require you to post a price list.

A service bureau provides independent tax offices with professional software, bank-product enrollment, training and support, and helps with setup and troubleshooting during the season. You run your own office and set your own prices while the bureau supplies the tools and support. Read What is a service bureau for more.

A sub-bureau is an experienced office owner who recruits, supports and trains other preparers under a service bureau's software and bank-product programs. It suits people who already have a team or a network of preparers. Earnings structures and requirements are discussed during the consultation; learn more at Become a service bureau.

As an independent office, the business and client relationships are yours to build. The specific terms of your agreement, including anything about client data and what happens if you leave, are spelled out in your enrollment documents, so review them before you sign. Ask us any questions during your consultation.

Many experienced preparers do switch. Review your current contract for notice periods, non-compete or non-solicitation terms, and client-data rules before you move, and get legal advice if anything is unclear. Section 7216 also limits how client return information can be used or transferred without consent.

Yes, many preparers work from a home office or serve clients remotely with secure portals and electronic signatures. You still need to follow local business-license and home-occupation rules and protect client data at home just as you would in an office. Remote features vary by package and are confirmed during your consultation.

A Written Information Security Plan describes how you protect client data. The FTC Safeguards Rule covers tax preparation firms, and IRS Publication 4557 explains that the rule requires a written security plan. IRS Publication 5708 is a free template built for small tax offices.

Under the FTC Safeguards Rule, covered firms must designate a Qualified Individual, use multi-factor authentication for anyone accessing customer information, encrypt customer data, and train staff. You must also notify the FTC within 30 days of discovering a security event involving the unencrypted information of 500 or more consumers. Your software and service bureau can help, but the responsibility is yours.