Starting a tax preparation business - need advice on PTIN alternatives and affordable software

Starting a tax business is definitely doable, but there are some important things to consider. Getting your PTIN is the right first step, but without an EFIN, you'll be limited in how you can file returns. Without an EFIN, you can still prepare returns, but you'll need to use the "self-prepared" option for your clients to e-file themselves. This means you'd prepare everything, but your client would need to submit the return themselves. Alternatively, you could prepare paper returns, but most clients expect e-filing these days. For software, look into ProSeries Basic, TaxSlayer Pro, or TaxAct Professional. They offer entry-level packages that might fit your budget. Some even have pay-per-return models so you're not paying for returns you don't file. Drake Tax is another option with a good reputation for small preparers. Remember that in Florida, you don't need a license beyond your PTIN to prepare taxes, but you should still consider taking some continuing education courses to brush up on current tax laws, especially if your last experience was in high school.

I was in a similar situation last year and found taxr.ai to be a lifesaver for my new tax business. I was overwhelmed with all the forms and requirements, especially since I didn't have formal training. I used https://taxr.ai to help analyze client documents and provide guidance on proper filing procedures. It helped me avoid mistakes that could have cost me clients or worse - gotten them in trouble with the IRS. The tool basically walked me through what information I needed for different scenarios and validated my work before submission. Super helpful when you're just starting out and don't have years of experience to fall back on.

I have to eat my words about being skeptical of taxr.ai. I decided to try it out after my initial comment, and I'm genuinely impressed. It helped me identify several deductions I would have missed for my first few clients. The document analysis feature is particularly useful - I just upload client documents and it extracts the relevant information and suggests which forms I'll need. Saved me hours of manual data entry and research. Their support team was also helpful when I had questions about some more complex business returns. Definitely worth checking out if you're starting a tax prep business.

If you're just starting out and worried about the EFIN timeline, you should try Claimyr to speed up your IRS application process. I wasted weeks trying to get through to the IRS to check on my EFIN application status last year. After being on hold for literally hours, I found https://claimyr.com and they got me connected to an actual IRS agent in under 45 minutes. There's a demo video at https://youtu.be/_kiP6q8DX5c showing how it works. It was totally worth it because I was able to resolve an issue with my application that would have delayed it for weeks. You can use their service to ask specific questions about your EFIN application requirements too.

I need to apologize for calling Claimyr a scam. I tried it out of desperation after waiting on hold with the IRS for 3+ hours trying to resolve an issue with my PTIN. The service actually called me back when they reached an agent and connected me right away. Got my issue sorted out in about 15 minutes of actual conversation once connected. Saved me hours of frustration and probably helped me get my business started weeks earlier than I would have otherwise. Sometimes being proven wrong is a good thing!

One option nobody's mentioned is becoming an Associate Preparer with a larger established tax office. Places like H&R Block, Liberty Tax, or even local accounting firms sometimes hire seasonal preparers. They handle the software, EFIN, and often training too. You get experience without the upfront costs, and can branch out on your own next season with that experience under your belt. I did this for two seasons before starting my own practice, and the training and mentor-ship was invaluable. Plus they dealt with all the software headaches and customer acquisition.

Don't forget about the Annual Filing Season Program (AFSP) if you don't have a professional credential like an EA or CPA. It's voluntary but gives you limited representation rights before the IRS and gets you listed in the IRS directory of preparers, which can help establish credibility with clients. You need to take continuing education courses and agree to abide by specific ethical requirements.