Pronto Tax Class Blog
New Tax Preparers Should Try Tax Prep Software Programs Before Buying
"What tax preparation software should I use?" This has been one of the most common questions from the graduates of our 60-hour online income tax course Pronto Tax Class.
We are currently working on our reviews of the best tax preparation software for new beginning tax preparers and we should be able to release those reviews of professional tax prep software within 7-14 days once we complete our testing.
However, newly minted tax preparers should not wait for us (or anyone else) to tell them what is the best tax preparation software to use. Instead, beginning tax preparers should request free "demo" version of various tax preparation software options and test these programs out for themselves. Read more to find out why it's best to test!
How Many Tax Returns Do You Need to Do to Make It "Worth It" to Become a Tax Preparer?
We received an interesting report yesterday from our partner bank, Refund Advantage. The report showed how many tax returns were e-filed in the 90745 Carson, California zip code during the 2011 tax season. We were happy to see that our Carson team with Kent Frye and Joel Earnest and Sonia Lugo e-filed more tax returns in 2011 than any other tax preparation company in Carson, California. That was gratifying to see all the hard work that Kent, Joel, and Sonia put into serving clients pay off by having the most clients in the 90745 zip code.
But what was a bit troubling was our realization, by looking at this report, that many tax preparers are not doing barely any tax returns per year. This is unfortunate, is somethikng that we'd like to help our Pronto Tax Class Students avoid, and brings us to the question: How many tax returns do YOU need to do this tax season to pull a decent profit as a first-year tax preparer?
IRS Sending Out "Warning" Letters to Tax Preparers
It is never a good feeling when you receive mail from the Internal Revenue Service (except, of course, when it's a refund check). Yesterday, one of our tax preparers here at Pronto arrived home to an IRS letter from the IRS essentially saying that this tax preparer needs to "watch out" when filing Schedule A, Itemized Deductions. Click "read more" to find out more about these IRS letters that are going out to "at-risk" tax preparers.
All Tax Preparers Are Entrepreneurs
All tax preparers are entrepreneurs--but some of them haven't realized it yet. What do we mean by this statement?
Well, it's as simple as this: every year as a tax pro, you must COMPETE for your clients' business, and in order to compete effectively, you have to summon your inner entrepreneur and market yourself effectively, "close" sales, and then market more and close more.
If you don't compete with an entrepreneurial spirit, you won't win clients like you can and should! Click "read more" to read more, but before you do that, make sure to watch this classic movie clip:
IRS PTIN System Overloaded, Not Yet Processing New Tax Preparer PTINs
We heard from a Pronto Tax Class Student today that she was not able to get her Preparer Tax Identificatin Number (PTIN) from the IRS website. Normally, new tax preparers are able to get their PTINs completely online at: http://www.irs.gov/taxpros/article/0,,id=210909,00.html. But now it appears that the IRS system is not processing new tax preparer PTIN applications, they are only renewing PTINs for existing tax preparers.
What is the deal, when will IRS start processing PTIN applications for new tax preparers?
Click "read more" link below to see what we've found out about this issue, also here is a link to the IRS PTIN video so you can keep in mind the overall IRS PTIN initiative: