Here you are—it’s the beginning of 2025, and you’re ready to finally launch the tax preparation business of your dreams.

So, where do you actually start?

While the tax industry is competitive, standing out is possible when you add accreditation, strategic business management, and client relationship building to your technical expertise.

How do I get professional tax prep credentials?

Before offering tax preparation services, cover your bases with all legal and professional requirements and decide what level of additional credentials you would like to have.

Get a Preparer Tax Identification Number (PTIN). To legally file returns on behalf of clients, you will need a PTIN. This number will go on any returns that you file to identify you to the IRS. The online application (which you can prepare for with this IRS PTIN application checklist) takes about 15 minutes and costs $19.75.

Look into additional accreditation. Legally, all you need is a PTIN to prepare and file tax returns—but there are additional certifications you can pursue to increase your expertise, client representation rights, and even your paycheck.

  • The Annual Filing Season Program (AFSP) is a voluntary initiative promoting tax education. Participants are listed in an IRS database after earning an AFSP Record of Completion.
  • Enrolled agents (EAs) are IRS-licensed professionals who pass a three-part exam covering tax planning, preparation, and representation. They must complete 72 hours of continuing education every three years.
  • Certified public accountants (CPAs) are licensed by state boards, have passed the Uniform CPA Exam, completed college-level accounting studies, and met experience and ethical requirements. They must continue their education to maintain an active license.
  • Tax attorneys are licensed by state courts, hold law degrees, pass bar exams, and meet continuing education and ethical standards.

One difference between these levels of accreditation is the right to represent clients before the IRS in audits, payment or collection issues, and appeals.

  • Enrolled agents, CPAs, and attorneys have unlimited representation rights.
  • AFSP participants can only represent clients before specific IRS employees on matters related to tax returns they prepared.
  • PTIN holders without other credentials (except for returns filed before 2016) have no representation rights.

The IRS maintains a public directory of qualified tax professionals, including attorneys, CPAs, enrolled agents, and AFSP participants with valid PTINs.

Research state-specific licensing and certification mandates. Naturally, it is crucial to make sure you are in compliance with local laws regarding tax preparation. Check with your state’s department of revenue (or similar department) to find any additional rules or regulations to provide services where you are located.

Invest in continuing professional education (CPE). Not every tax preparer is required to earn CPE credits, but professional education is a great way to stay informed about changing tax laws and industry best practices.

How do I choose the best tax software for my practice?

Reliable tax software for professionals is a crucial investment that directly impacts efficiency, accuracy, and client satisfaction. When selecting tax software, key factors to consider include:

  • E-filing and compliance capabilities to meet IRS and state regulations.
  • Comprehensive tax law resources to ensure up-to-date compliance with evolving tax codes.
  • Seamless integration with bookkeeping and client management tools to streamline workflow.
  • Data security measures, such as encryption and multi-factor authentication, to protect sensitive client information.
  • Scalability options to accommodate business growth and increased client demand.

We know a thing or two about professional tax software—and we’d be delighted for you to explore our tax preparation solutions.

How do I design an efficient tax preparation office?

Whether you plan to work from a home office or a commercial space, some things are crucial for a tax preparation business.

  • How do you want your clients to feel? Are you the helpful friend with expertise? The buttoned-up professional? Make sure the space where you meet clients reflects your goals.
  • Are clients’ sensitive documents going to be secure? Cybersecurity and data protection are a must. Make sure that you are using reliable tax preparation software and are following your Written Information Security Plan (WISP) to the letter.
  • Do you have essential office equipment? Reliable computers, printers, and document scanners are a good place to start.
  • Are your client communication channels professional? Now’s the time to ditch the taxes_5eva@happytaxprep.com address that you set up in middle school (just us?). Set up a professional email address to have a home for your client interactions—and maybe even a designated phone line.

How do I implement a marketing strategy for my professional tax preparation business?

Now that you have the business infrastructure, it’s time to get your name out there. A strategic marketing plan meets prospective customers where they are, draws them in, and converts them into happy clients.

  • Website development. Create a professional, SEO-optimized website featuring service offerings, client testimonials, and informative blog content.
  • Social media engagement. Utilize platforms like LinkedIn, Facebook, and Twitter to build brand authority and attract new clients.
  • Email marketing campaigns. Send targeted newsletters with tax updates, business tips, and service promotions to engage potential and existing clients.
  • Local networking opportunities. Partnerships with financial advisors can help build your network, as can participation in community business groups.
  • Client referral incentives. Offer discounts or rewards to satisfied clients who refer new business.

How do I connect with my peers in the industry?

The tax industry is constantly evolving due to regulatory updates, economic shifts, and technological advancements. To remain competitive, tax professionals should:

  • Subscribe to IRS newsletters and tax law updates to stay informed about changes that impact tax preparation.
  • Attend tax training seminars, industry conferences, and online webinars to enhance expertise and adopt best practices.
  • Join professional organizations such as the National Association of Tax Professionals (NATP) or the American Institute of CPAs (AICPA) for networking and educational resources.
  • Explore additional service offerings, such as bookkeeping or business tax planning, to diversify revenue streams.

Hungry for more? Grab our e-book to get started.

Building a thriving tax preparation business in 2025 involves more than just filing returns—it requires strategic planning, technological integration, and proactive client engagement.

To help you accomplish your goals, grab our Start Your Practice e-book for tips on forming your business, building your practice, and growing it with marketing strategies.

Ready to take your tax business to the next level? Tax Act Professional offers affordable software that’s fully loaded with features for today and tomorrow’s tax practice.

  • Easy-to-use software. Seamlessly switch between forms view and Q&A interview, and see side-by-side comparisons of prior and current year returns.
  • Money-Back Guarantee. You’re guaranteed to love our software, or we’ll send your money back!*
  • Scalable solutions. We have e-filing options and powerful software for all firm sizes plus reports that enable you to offer customized tax planning services.

Discover how Tax Act Professional can streamline your workflow, enhance client satisfaction, and support the growth of your practice.

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*TaxAct guarantees you are completely satisfied with your TaxAct software purchase. If you are not completely satisfied, simply return the product for a full refund within 30 days of receipt and you will receive your money back. No questions asked!

 

Disclaimer: This article is for informational purposes only and not legal or financial advice. Download requires submission of contact information and consent to receive marketing messages. Additional terms and conditions may apply. Offer subject to change. TaxAct makes no representations or warranties of any kind, express or implied, about the content and suitability of a download for any purpose. All TaxAct offers, products and services are subject to applicable terms and conditions.