[Saban]

Hello,

I was wondering about starting up a small business where I would do taxes for other people. Anyone can do their own taxes using a simple program such as Turbo Tax, so I was wondering, could I use it for other people for profit. Would this be legal?

I could help many people in my neighborhood that don't speak english. Most people from my country would rather come to me then go to some big corporation, and I would charge half as much.

It is hard to research something like this and please keep in mind that I just finished HS and I am doing this more for experience and something to put on a resume then to make $$$$$. But extra money is always helpful.

Thanks for you help.

[harrymcwealth]

No it would not be illegal, at all.
The business you describe is similar to what H&R Block does.

[Saban]

Originally posted by harrymcwealth
No it would not be illegal, at all.
The business you describe is similar to what H&R Block does.

Would be ok to use the program like Turbo Tax and use it to do taxes for other people? Thats the one that is concerning me.

And would anyone know what kind of lisences I would need? Just the regular lisences or would I need something more since I am dealing with taxes and I do not want to make IRS mad at me.

[harrymcwealth]

As far as my knowledge goes you do not need any particular license, nor do you need to register it as a business. If you simply operate under your name or no name at all it is not necessary.
In short just do it man.

[greling]

If you solicit yourself as a "tax preparer", then you need to have training and the required certification from the area you are working in. This is a licensing requirement. It's much like lobbying. You can lobby and be in the business of lobbying, but you can't solicit yourself as a "lobbyist" without a license and lobbyist registration. Still, the line in a thin one to cross, so I suggest getting certified as a tax preparer before deciding to go big.

Not all places require certification, but here in California, we have strict regulations on who does what and gets what title. This is mostly because of union laws.

[greling]

Also, a similar-natured business is Private Investigation. In some states you don't need a license. In California and New York, you have to go through training/apprentiship, certification, and licensing, and pay a hefy registration fee, while some states there is nothing at all.

[ericesquire]

You have to have your CPA to do public accounting and tax reporting.

[greling]

Not necessarily. But very few people would trust those who aren't with a CPA license.

[ericesquire]

True, you're going to struggle without a CPA...I know that I wouldn't give my books to someone who didn't have it. The IRS isn't something to play with - I need someone who's insured.

[bjohnson]

No...No...No...

Saban,

I have worked for a tax software company (TaxVision) for 7 years now and if I understand your original post your not looking to provide CPA type of services, but mainly 1040 tax preparation services. You don’t need to be certified to do this. Matter of fact most of our customers we have don’t bother with business tax preparation (CPA work) because it takes too long…they concentrate on personal taxes and providing Fast Refund services like H&R block.

The only requirement the IRS has on becoming a tax preparer and providing electronic filing services is that you have what they call an EFIN number (electronic filing identification number). This process is very easy; all you have to do is fill out the IRS form 8633 and send it to the IRS. We have this form posted on our home page at www.taxvision.com or you can go to the IRS’ website and under form search type in “8633”.

If you decide to do this call my sales department at 800-687-1096 and we can figure out what TaxVision package works best for you.

Good Luck!

Bob Johnson