How to become a Tax Preparer

In India, a tax consultant is a professional who gives advice relating to direct tax (eg. income tax, wealth tax, property tax) and indirect tax (eg. GST, customs duty tax). Tax consultants, often also referred to as tax advisors or tax preparers or tax accountants, are professionals, having financial proficiency and training in tax law, tax compliance, and tax planning of a country.

Both individuals and organizations hire a tax consultant to help them optimally complete their tax returns every financial year. Tax advisors use their knowledge of the tax code to assist their customers in making informed financial decisions about tax matters.

A Tax consultant in India is trained and educated about Indian tax laws and regulations. They attempt to minimize their client’s tax liabilities and maximize tax deductions and/or credits by advising their clients about tax laws and penalties.

They extract and analyse information from the client’s financial documents such as, wage, employment and mortgage, investment statements, etc. for the submission of prepared documents to the Internal Revenue Service and coordinate with tax authorities.

Along with tax filing, the job of a tax consultant is also extended in services such as:

• Income-tax and income-tax return filing.
• Planning with clients to reduce tax liability.
• Filing e-returns.
• Conducting research on tax laws and compliance issues.
• Captivating gains of current economy enhancing tax laws.
• Deferring taxes to future years.
• Completing and submitting tax forms like Form 16, Form 12 B, etc.
• Help clients make legitimate investment plans such as life insurance, term insurance, health insurance, pension plans, child plans, estate planning, and other tax-saving schemes by the government.
• Handling profit and losses on capital assets to counterbalance each other.
• To measure the tax and co-ordinate with the tax authorities.
• Oversee state and central audits.
• Help clients or companies to be aware of the state-run, local as well as global tax structures.
• Meeting clients and discussing their financial situation.
• Gathering information and data to calculate the amount of tax due.
• Auditing clients’ tax records.
• Explaining tax laws to clients and finding ways to reduce their tax liabilities.
• Producing reports or presentations for clients.
• Negotiating with HM Revenue and Custom on your client’s behalf.
• Keeping up to date with changes in tax laws and regulations.
• In some jobs, you may also provide other accountancy services for clients..

• A career in taxation demands an individual to be a good communicator, be comfortable with numbers, be out-of-the-box thinkers and be creative.
• Besides accountancy skills, it requires excellent problem-solving skills, negotiation skills, commercial skills and analytical ability. 
• They also need to be efficient in time management such as meeting deadlines, prioritizing tasks, and taking personal responsibility for a professional workload. One could take up this job if they have commercial awareness, willingness to learn about the taxation sector and current market scenario.
• One needs to pay great attention to details, as well as the ability to understand and explain complex regulations in a way non-specialists can understand. 

Tax preparers can find employment opportunities in various industries where individuals and organizations require assistance with their tax obligations. Here are some industries that commonly employ tax preparers:

• Accounting Firms: Many tax preparers work in accounting firms, ranging from small local firms to large multinational organizations. These firms offer tax services to individuals, small businesses, and corporations and employ tax preparers to assist in preparing tax returns and providing tax planning advice.
• Financial Services: Banks, investment firms, and financial service providers often have tax departments or teams that help clients navigate their tax responsibilities. Tax preparers in these industries may assist clients in understanding tax implications related to investments, retirement accounts, and other financial activities.
• Tax Preparation Firms: Specialized tax preparation firms focus exclusively on tax services. These firms employ tax preparers who handle tax return preparation, tax planning, and related services for individuals and businesses.
• Corporate Tax Departments: Large corporations often have in-house tax departments to handle complex matters. Tax preparers in corporate tax departments work on corporate tax returns, tax compliance, and tax planning for the company.
• Nonprofit Organizations: Nonprofit organizations, including charities, foundations, and religious institutions, may employ tax preparers to ensure compliance with tax regulations and handle tax reporting for the organization's activities.
• Government Agencies: Government agencies at various levels, such as the Internal Revenue Service (IRS) or state revenue departments, employ tax preparers to assist in reviewing tax returns, conducting audits, and providing guidance to taxpayers.
• Self-Employment and Freelance: Some tax preparers work as self-employed professionals or freelancers. They serve individual clients or small businesses, providing tax preparation services contractually.
• Retail Tax Preparation Services: Tax preparation services, such as tax software companies and walk-in tax preparation firms, often hire tax preparers to assist clients during the tax season. These positions involve preparing individual tax returns and providing essential tax advice.