Tax Preparers
Description OES Code: 21111
Prepare tax returns for individuals or small businesses but do not have the background or responsibilities of an accredited accountant or certified public accountant. May work for established tax return firm.

Wages, California
Entry Level Hourly Wage $6.33
25th Percentile $6.94
50th Percentile $10.23
75th Percentile $20.62

Wages by California County
• OES Survey
• CCOIS Survey

Hours & Benefits
Tax services are normally open seven days a week, 12 hours a day during tax season. Work schedules vary, with preparers working 12 to 40 hours a week or more. Self-employed Tax Preparers and Interviewers charge their customers fees, typically based on either the number of schedules used or time spent preparing the returns. In businesses employing interviewers, workers usually earn straight commission. Earnings vary with the individual's qualifications and length of service.

Employment Trends, California
Employment 1998 6,600
Projected Employment 2008 8,800
Percent Change 1998-2008 33.3%
Separations 1998-2008 1,700

Employment Trends, San Joaquin County
Employment 1999 170
Projected Employment 2006 210
Percent Change 1999-2006 23.5%
Separations 1999-2006 30

Employment Trends by California County

The number of Tax Preparers is expected to grow faster than average through 2005. Faced with complex and constantly changing tax regulations and the time-consuming paperwork involved in preparing even simple tax returns, more and more people are turning to Tax Preparers for help.

Working Conditions
The work of Tax Preparers and Interviewers is usually seasonal, with many offices open only during tax season, January through April. However, many enrolled agents work year-round doing tax and estate planning and audits. Preparing tax returns can be a very demanding job involving close concentration and considerable time pressure, particularly toward the end of the tax season.

Advancement
Tax Preparers and Interviewers can become enrolled agents. There are two ways to meet the requirements to become enrolled agents: five years of previous IRS employment at the auditor level or higher; or successful completion of a four-part, two-day written examination conducted annually by the IRS.

There are no educational or experiential requirements for taking the enrolled agent examination; however, candidates should be able to answer income tax accounting questions at the intermediate college course level. Applications, as well as free study materials for the exam, are available at local IRS offices. Candidates will also benefit from taking the exam preparation seminars and classes offered by the California Society of Enrolled Agents (CSEA). Enrolled agent must meet the continuing education requirements of at least 72 hours every three years. Enrolled agents may become members of the National Association of enrolled agents and its California affiliate, CSEA, which has chapters Statewide.

Getting the Job & Other Information
Tax preparers are usually hired in December for the following tax season. Jobs may be found by calling employers or through tax preparation schools. Qualified college students should contact their campus placement office where employers may place job orders. Job seekers may also register with the California Employment Development Department. The California Society of Enrolled Agent's monthly newsletter is another source for job leads.

For a list of current job listings, browse CalJOBS or America's Job Bank.

Education and Training
State law requires persons preparing tax returns for a fee to be registered. Basic qualifications for registration are the same for preparers and interviewers. Some preparers are exempt from State registration because they are regulated by other agencies. These include enrolled agents, CPAs, attorneys, and Tax Preparers employed by banks, savings and loans, or loan companies that operate tax preparation services.

Applicants for State registration must be at least 18 years old, with a high school diploma or the equivalent. They must have had either 60 in-class hours of approved instruction in basic personal income tax law, theory, and practice, or two years of equivalent work experience preparing personal income tax returns, covering both California and federal taxes. They must also post a $5,000 surety bond. Because many community and four-year colleges only cover federal taxation, students must take additional instruction in State tax laws. In order to be registered on the basis of work experience, applicants must have worked full-time for two tax seasons or part-time for four tax seasons, preparing both federal and State returns. Registration with the State of California must be renewed annually. Renewal requires the completion of 20 hours of continuing education, with eight hours in federal and four hours in State taxation. Some tax services offer instructional courses to help their employees become registered.

Skills & Other Requirements
Most employers look for the same qualities in applicants; these include good arithmetic and language skills, legible handwriting, the ability to concentrate on details and to do fast, accurate work, even under pressure. Equally important (except perhaps for checkers), are an even-tempered, friendly manner, and the ability to relate to all kinds of people. In some locations, working knowledge of a foreign language is a plus.

References
California Occupational Guide #482

Related Occupations: Accountants & Auditors, Bookkeeping, Accounting, & Auditing Clerks

Training: California Training and Education Providers (CTEP)