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Tax Preparers and Interviewers

THE JOB

TAX PREPARERS and INTERVIEWERS prepare tax returns for others for a fee.
Their job is to accurately fill out all the required forms and to use all
appropriate adjustments, deductions, and credits to keep their clients'
taxes to a minimum.  Those who are self-employed are classified as Tax
Preparers, while those employed by tax services are called Tax Interviewers.

Tax Preparers and Interviewers are registered by the California Department
of Consumer Affairs.  There is another group of tax practitioners, enrolled
agents, who are licensed by the Internal Revenue Service (IRS).  In addition
to preparing federal and State tax returns for individuals and businesses,
enrolled agents are legally entitled to represent any taxpayer in any type
of audit before the IRS or the State Franchise Tax Board.  This guide does
not cover certified public accountants (CPAs) or attorneys, although these
professionals also prepare tax returns and represent taxpayers in audits.

Tax Preparers and Interviewers gather information by interviewing clients
and by using copies of previous tax returns, wage statements from employers,
year-end interest and dividend summaries, and other tax records.  Clients
are asked about their work, their investments, their expenses, and any
unusual or significant events of the previous year, such as a new job,
retirement, home improvements, or capital losses or gains.  In this way,
preparers pick up clues to possible deductions and credits and then follow
up with additional questions to obtain the necessary details. 

Tax Preparers often try to complete the entire return at the interview, but
complex returns may require additional work.  Some preparers fill out
detailed data sheets instead of the actual returns, which are processed
later by computer (generally by an outside service).  In these cases, after
interviewing the client and gathering the data, most experienced preparers
can give clients a rough idea of what their return will look like.  They
usually calculate the client's fee at this time.

Some preparers in larger firms check the returns of other preparers, and do
not deal directly with clients.  By law, preparers must sign every return
they complete, enter their social security number or federal identification
number, and retain a copy of the return.

Some Tax Preparers also do tax planning with their clients, help their
clients respond to notices from the State and federal tax agencies, and
advise them about payment and collection problems.  They may assist clients
when they are audited, help them set up estimated tax payments or correct
withholding from wages, and advise them about record-keeping for tax purposes.

In addition, Tax Preparers and Interviewers keep their clients informed of
the current interpretation of tax laws and the effect of new tax legislation.


WORKING CONDITIONS

The work of Tax Preparers and Interviewers is usually seasonal, with many
offices open only during tax season, January through April.  However, many
enrolled agents work year-round doing tax and estate planning and audits.
Preparing tax returns can be a very demanding job involving close
concentration and considerable time pressure, particularly toward the end of
the tax season.

Many people working as Tax Preparers and Interviewers have other careers;
some are college students or retirees.  Only a few preparers do tax-related
work year-round, preparing late or amended returns. 


EMPLOYMENT OUTLOOK

The following information is from the California Projections of Employment
published by the Labor Market Information Division.

Estimated number of workers in 1993            10,890
Estimated number of workers in 2005            15,180
Projected Growth 1993-2005                        39%
Estimated openings due to separations by 2005   2,660

(These figures do not include self-employment or openings due to turnover.)

The number of Tax Preparers is expected to grow faster than average through
2005.  Faced with complex and constantly changing tax regulations and the 
time-consuming paperwork involved in preparing even simple tax returns, 
more and more people are turning to Tax Preparers for help.

As of early 1998, there were approximately 28,400 Tax Preparers and
Interviewers with active registration with the California Department of
Consumer Affairs.  


WAGES, HOURS, AND FRINGE BENEFITS

Self-employed Tax Preparers and Interviewers charge their customers fees,
typically based on either the number of schedules used or time spent
preparing the returns.  In businesses employing interviewers, workers usually
earn straight commission.  Earnings vary with the individual's
qualifications and length of service.  Until their commissions are
calculated, preparers are paid an hourly draw, ranging from minimum wage to
about $8.00 an hour.  Total earnings vary widely, from the minimum wage to
$30.00 an hour or more depending on commission rate, individual
productivity, and the volume of work in the office.  A few preparers
(including checkers) are paid straight wages, ranging from $6.50 to
$12.50 an hour.

Tax services are normally open seven days a week, 12 hours a day during tax
season.  Work schedules vary, with preparers working 12 to 40 hours a week 
or more. 


ENTRANCE REQUIREMENTS AND TRAINING

State law requires persons preparing tax returns for a fee to be registered.
Basic qualifications for registration are the same for preparers and
interviewers.  Some preparers are exempt from State registration because
they are regulated by other agencies.  These include enrolled agents, CPAs,
attorneys, and Tax Preparers employed by banks, savings and loans, or loan
companies that operate tax preparation services.

Applicants for State registration must be at least 18 years old, with a high
school diploma or the equivalent.  They must have had either 60 in-class
hours of approved instruction in basic personal income tax law, theory, and
practice, or two years of equivalent work experience preparing personal
income tax returns, covering both California and federal taxes.  They must
also post a $5,000 surety bond.  Because many community and four-year
colleges only cover federal taxation, students must take additional
instruction in State tax laws. 

In order to be registered on the basis of work experience, applicants must
have worked full-time for two tax seasons or part-time for four tax seasons,
preparing both federal and State returns.  Registration with the State of
California must be renewed annually.  Renewal requires the completion of 20
hours of continuing education, with eight hours in federal and four hours in
State taxation.  Some tax services offer instructional courses to help their
employees become registered.

Most employers look for the same qualities in applicants; these include good
arithmetic and language skills, legible handwriting, the ability to
concentrate on details and to do fast, accurate work, even under pressure.
Equally important (except perhaps for checkers), are an even-tempered,
friendly manner, and the ability to relate to all kinds of people.  In some
locations, working knowledge of a foreign language is a plus.


ADVANCEMENT

Tax Preparers and Interviewers can become enrolled agents.  There are two
ways to meet the requirements to become enrolled agents: five years of
previous IRS employment at the auditor level or higher; or successful
completion of a four-part, two-day written examination conducted annually by
the IRS.  There are no educational or experiential requirements for taking
the enrolled agent examination; however, candidates should be able to answer
income tax accounting questions at the intermediate college course level.
Applications, as well as free study materials for the exam, are available at
local IRS offices.  Candidates will also benefit from taking the exam
preparation seminars and classes offered by the California Society of
Enrolled Agents (CSEA).  Enrolled agent must meet the continuing education
requirements of at least 72 hours every three years.

Enrolled agents may become members of the National Association of enrolled
agents and its California affiliate, CSEA, which has chapters Statewide.


FINDING THE JOB

Tax preparers are usually hired in December for the following tax season.
Jobs may be found by calling employers or through tax preparation schools.
Qualified college students should contact their campus placement office
where employers may place job orders.  Job seekers may also register with
the California Employment Development Department.  The California Society
of Enrolled Agent's monthly newsletter is another source for job leads.


ADDITIONAL SOURCES OF INFORMATION

California Tax Education Council
P.O. Box 2890
Sacramento, CA 95812-2890
(916) 492-0457

California Society of Enrolled Agents (CSEA)
3200 Ramos Circle
Sacramento,  CA 95827
(916) 366-6646

RELATED OCCUPATIONAL GUIDES

Accountants                                     No.  1
Bookkeeping, Accounting, & Auditing Clerks      No. 26

OCCUPATIONAL CODE  REFERENCES

DOT (Dictionary of Occupational Titles, 4th Ed., 1991)
Tax Preparer                               219.362-070

OES (Occupational Employment Statistics) System
Tax Interviewers and Preparers                  211110


Source:  State of California, Employment Development Department,
         Labor Market Information Division, Information Services Group,
         (916) 262-2162.