[Anonymous]

Last Chance CPA here. My other account is gone somehow. So I didn’t get a job as an accountant given how experienced I am in IT healthcare consulting. No biggie, I have a full-time job that pays really well. Now I am looking to do taxes on the side to get experience.

Question: How do you all find clients? I don’t know many people in San Diego, so friends/family could be a challenge. I joined VITA, but I can’t solicit in any way while volunteering. Suggestions?

Question: Is there any free software out there I can use to do taxes? I posted on Craigslist, so let’s say someone responds, how would I be able to do their taxes – State and Federal – without having to buy tax software.

Thanks!

[jbergmann1]

You should not be doing taxes on your own unless you have experience. You also need a PTIN from the IRS. And no, you have to pay for software.

Passed all 4 parts of the CPA exam!
License application in progress

[SeattleCPA]

This idea probably doesn't work if you've got a full-time job now, but what would make way more sense would be to work for some smaller firm where you can get some real experience.

BTW, if you want to do tax, you don't want to do the simple returns. You want to do the complex returns. That's where you can earn a professional's income…

Except at very high volume (probably with modest return quality and low customer service), there's very little profit in doing low-end, simple 1040 tax returns…

[Missy]

You'll need a PTIN to accept payment for even one tax return, and as far as I know there are no free software for a paid preparer.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Anonymous]

Wow ok. I wonder if I have any business doing VITA then? I really don't have experience, except that I passed the CPA exams and VITA advanced exams.

[Missy]

Here's my .02, for what it's worth and that's less than .02. Doing simple individual taxes isn't rocket science and you certainly don't need a CPA. You can do them no problem. The value of actual experience is more than I can put into words. You're going to get people with questions you're likely not prepared to answer (like, I got married in July and my new wife had no health insurance from January-June, do we have to pay a penalty?) And even after passing VITA tests are you savvy enough to tell the couple in front of you that their now 16 year old daughter will not get them the child tax credit next year because she'll be 17 in September? I've been doing mine and a few friends taxes since high school and can tell you I learned more last year actually doing taxes at Jackson Hewitt than I did in my college courses, cpa exam, and passing the h&r block exams combined.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[tangerinemdr15]

Thanks for the valuable info. I have been thinking about taking this route after my exams as well!

[RyonT]

I started doing taxes on my own last year after I left my old firm. I only do maybe 20 returns a year, but its a few extra dollars. Like the others said, you do need a PTIN, and if you want to be able to E-File, you also need an EFIN. The EFIN is a bit a a process. You have to fill out an application, get fingerprinted, and then wait for approval, which takes about 6 weeks. Some softwares offer a pay per return option where you pay like $20 for each return (I use Drake). If you want to make a go out of it, start doing your friends' returns, and then get them to reccomend you. Get some experience first, though.

[ForgottenOne]

There are a couple ways of doing this:

1. The cheapest way, for tax returns that qualify for free e-file (low income, age, blah blah)
a. create an email address
b. create a tax software account (turbo tax, hnrblock, etc)
c. prep the return as the taxpayer, you need taxpayer last year AGI to efile
d. by doing this, you totally ignore Circular 230. I only recommend doing this method to close/best friends and family

2. Alternatively, buy a tax software for individual, tax software like hnrblock or turbotax has five free e-file. This method is basically same as method 1 but you dont have to create an email address per taxpayer, and you could print out unlimited tax returns to mail in

3. The legit expensive way:
a. get PTIN
b. get EFIN
c. get E&O (error and omission) insurance
d. get a tax software for preparer, it seems like the economically software out there is Drake
e. comply to Circular 230
f. optional: get bank products
g. optional: get credit card processor
How many people out there could pay for prep fee upfront? and how many are carrying cash around? Without bank products and credit card processor, you are limiting yourselves to potential clients.

Good luck and stay out of trouble

[NYSCPA]

Just to give figures to Forgotten One's “Legit Expensive Way”. I too am employed full time and have started a tax prep business for extra income.

1) PTIN – $50, must renew annually.
2) EFIN – Free to apply but you must have a physical address for your Business. Note: If you use your home address this will show up on every return you file. (i've looked into renting Virtual Office Space (just a place to have an address to use and receive mail), they go for $75+/month in NYC. You don't need to be finger printed if you have your CPA license. This application takes about 2-3weeks to process.
3) I purchased insurance through AICPA less than $300.
4) I purchased a Professional version of ProSeries (I use it at my full time job and I like the interface) It was $265 for software license plus $50-60/return (Fed and State). You could minimize this cost by buying “unlimited” authorizations. I think this is like $1,500/year
5) I'm not sure what Bank Products are, but if he's referring to refund loans, etc. I personally am staying away from what I consider to be Gimmicks. (I'm competing with the likes of HR Block, Liberty, etc.)
6) I purchased Square Reader to use with an Ipad I already owned. That was less than $100, plus they take a fee for each transaction.
7) I purchased a laptop to use solely for business $1k.

If you want to know anything else feel free to ask. From one Professional to another please do not bite off more than you can chew. If you have absolutely no tax experience, I would do VITA just to get used to the process and the Forms.

Good Luck!

[Author]

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