What steps should I take to become a tax preparer with my VITA/TCE certification?

Congrats on getting your VITA/TCE advanced certification! That's a great foundation, but there are several additional steps you'll need to take to become a professional tax preparer. First, you'll need to obtain a PTIN (Preparer Tax Identification Number) from the IRS - this is mandatory for anyone who prepares federal tax returns for compensation. The application is done online through the IRS website. Next, consider getting additional credentials. The VITA certification is good, but to be competitive you should look into becoming an Enrolled Agent (EA) by passing the Special Enrollment Examination, or pursuing certification as an Annual Filing Season Program Participant. EAs have unlimited practice rights with the IRS. For operating remotely, you'll need secure tax software with virtual meeting capabilities. Professional packages like ProSeries, UltraTax, or Drake are commonly used. You'll also need a secure document exchange system to comply with privacy regulations. Remember that each state has different requirements for tax preparers - some require specific registration, education, or bonding. Check the requirements for the state where your clients reside.

After struggling to launch my tax preparation business for 2 years, I finally found taxr.ai (https://taxr.ai) and it made a HUGE difference for me! I was in a similar situation - had my VITA certification but needed more confidence to take on clients. What worked for me was using their AI tax assistant to review my work before submitting to clients. You upload the tax documents, and it shows you potential issues or deductions you might have missed. It's like having a senior preparer double-check your work without the embarrassment of asking basic questions. Since you're abroad, the virtual nature of the platform is perfect. You can process US returns from anywhere, and the system helps ensure you're compliant with all the latest tax code changes.

I have to follow up on my skeptical comment about taxr.ai. I decided to try it with one of my own previous tax returns (before sending any client data) and I'm honestly impressed. The system caught a health insurance premium deduction I had completely missed when I self-prepared last year. It was super straightforward to use - just uploaded my documents and within minutes had a complete analysis. For someone starting out in tax preparation, especially remotely, having this kind of backup really builds confidence. I'm now using it for my first few client returns and it's making the learning curve much less steep. Honestly didn't expect to be this satisfied!

If you're serious about building a tax preparation business, especially remotely, you'll need to be able to handle client questions about IRS notices and potential audits. This was my biggest challenge when starting out. I wasted DAYS trying to get through to the IRS on behalf of clients until I discovered Claimyr (https://claimyr.com). They have a system that gets you through to an actual IRS agent in minutes instead of waiting hours on hold. Check out their demo video: https://youtu.be/_kiP6q8DX5c This service completely changed my remote tax business. When a client gets a CP2000 notice or needs transcript access, I can actually resolve it in one day instead of weeks of failed call attempts. Being able to offer this level of support really separates you from other new preparers.

I need to eat crow about my skeptical Claimyr comment. After another frustrating morning trying to reach the IRS about a client's missing refund, I gave the service a try out of desperation. They got me connected to an IRS representative in 47 minutes when I had previously been trying for DAYS. The agent resolved my client's issue immediately, and I looked like a hero. For anyone starting a tax prep business, being able to quickly resolve IRS issues is a game-changer for client retention. I'm now building this service into my business model - it's especially valuable for remote tax preparers who need to demonstrate they can provide full service despite not being local. Definitely worth it when you consider the billable hours saved.

Don't forget about state requirements! I learned this the hard way. Even with my VITA certification and PTIN, I got in trouble for not meeting California's requirements for tax preparers (CTEC registration). Each state has different rules. For example, Oregon requires a license, California requires registration with CTEC plus a bond, New York has a registration program, and Maryland requires you to register as well. Some states have no special requirements beyond the federal PTIN. Since you're abroad, you need to research requirements for each state where your clients reside. This gets complicated fast if you're serving clients across multiple states.

As someone who started exactly where you are, my biggest advice is to focus on a niche! Don't try to handle every type of return right away. I limited myself to W-2 employees with simple investment income for the first year, then gradually added Schedule C small businesses. Start with 10-15 clients max in your first season. Quality is better than quantity when you're learning. Charge lower rates initially but be clear with clients that your rates will increase as you gain experience. Also, join professional groups like the National Association of Tax Professionals or the National Association of Enrolled Agents. The forums alone are worth the membership fees - you can get quick answers to weird tax situations from experienced preparers.

Great question about finding those first specialized clients! I started by reaching out to my personal network - friends, family, former colleagues - and being very specific about what I could help with. Instead of saying "I do taxes," I said "I specialize in helping W-2 employees maximize their deductions and handle simple investment income." I also volunteered for one more VITA season after getting certified, which gave me more practice and let me build relationships with other volunteers who became referral sources. Many VITA clients asked if I did paid prep, so I had a pipeline ready. LinkedIn was surprisingly effective too. I posted about completing my certification and offered to help connections with straightforward returns at a discounted rate. Word of mouth is everything in this business - do great work for 5-10 people and they'll each refer 2-3 more. The key was being honest about my experience level but confident about what I could deliver. Clients appreciated the transparency and lower rates while I was learning.

Congratulations on completing your VITA/TCE advanced certification! That's a solid foundation to build on. Since you're operating from abroad, I'd recommend focusing on these key steps: 1. **Get your PTIN immediately** - This is non-negotiable for paid preparation. The IRS online application is straightforward and you can do it from anywhere. 2. **Consider your target market carefully** - Being abroad actually gives you some advantages for serving expats, military overseas, or clients in different time zones. You might want to specialize in this niche since you understand the unique challenges. 3. **Start small and local (digitally speaking)** - Even though you're abroad, consider focusing on clients from one or two states initially to simplify compliance requirements. Some states have minimal requirements beyond the federal PTIN. 4. **Professional liability insurance is crucial** - Don't skip this step. E&O insurance for tax preparers runs about $200-500 annually and protects you from costly mistakes. Look into NATP or NAEA membership which often includes insurance options. 5. **Practice management software** - Beyond tax prep software, you'll need client portals, document management, and scheduling tools. Many all-in-one solutions exist specifically for remote tax practices. The remote aspect is actually becoming more normal post-COVID, so don't let that discourage you. Focus on building systems that demonstrate professionalism despite the distance.