Understanding Tax Preparers: Roles, Responsibilities, and Certification Requirements

A preparer is a person who prepares something, such as a document, a presentation, or a meal. In the context of taxes, a preparer is someone who helps individuals or businesses prepare their tax returns and other related documents. This can include accountants, bookkeepers, and other financial professionals who have received training and certification in tax preparation.

Preparers may perform a variety of tasks, such as:

1. Gathering financial information from clients, including income statements, expense reports, and other relevant documents.
2. Reviewing tax laws and regulations to ensure compliance.
3. Completing tax forms, such as the 1040 form for individuals or the 1120 form for businesses.
4. Calculating tax deductions and credits.
5. Preparing supporting schedules and attachments.
6. Reviewing the tax return for accuracy and completeness before filing it with the IRS.
7. Providing guidance on tax planning strategies and other financial matters.

Preparers may work independently or as part of a larger tax preparation firm. Some preparers may also offer additional services, such as audit support or tax planning consultations.