Current Fed interested in tax prep

[MaybeEA]

Good evening,

I’m a current federal employee, but have always been interested in tax prep. If I am to pursue this, I’d like to end up in a position where this is perhaps a seasonal side-gig while I maintain my current employment. I have a couple questions as it relates to my federal employment:

1) Can a preparer be paid to prepare without the client expecting that they be represented before the IRS, should the need arise? (Current feds can’t represent a client before any federal agency).

2) if I obtained an EA certification, how does that change the dynamic of my previous question?

3) My agency will not allow me to be engaged in the preparation of self-employment tax returns specifically. Does that limit my options when pursuing this?

Any advice appreciated. Thank you all in advance.

-MaybeEA

[secondcor521]

I don't know the answers to your questions, but I'd suggest you consider volunteering for the AARP Foundation Tax Aide program.

[MDM]

I don't know the answers to your questions, but I'd suggest you consider volunteering for the AARP Foundation Tax Aide program.

+1

IRS Tax Volunteers | Internal Revenue Service has more details.

[NorCal]

I looked into this a long long time ago. My memory is a bit hazy on this, and the knowledge is dated, so do your own research.

H&R Block and other similar places offer training classes that lead to employment. This is probably the path of least resistance for getting started. I think you can take the class without working for them.

Also, I learned that tax prep pays peanuts. It was a common saying that the person on the street dressed like the Statue of Liberty and swinging a sign made more money than the actual tax preparers.

[secondcor521]

I looked into this a long long time ago. My memory is a bit hazy on this, and the knowledge is dated, so do your own research.

H&R Block and other similar places offer training classes that lead to employment. This is probably the path of least resistance for getting started. I think you can take the class without working for them.

Also, I learned that tax prep pays peanuts. It was a common saying that the person on the street dressed like the Statue of Liberty and swinging a sign made more money than the actual tax preparers.

I don't think Liberty or H&R Block or whoever is in Walmart these days would accept the restriction that the OP has about not doing self-employment tax returns.

Then again, some self-employment tax returns are in scope for AARP Foundation Tax Aide, so that might be a problem there too.  But AARP is all volunteer, and maybe they'd just have OP not do those.  Depending on where OP lived, returns involving self-employment may only be 5% or less of the returns done through Tax Aide.

[JJ-]

As a current fed I assume you have cleared this with the agency ethics counselor? If there are explicit restrictions against self employed returns it may not be advisable to do other types. Additionally if you choose to leave service there may be time limits as well.

I'd suggest a brief conversation with them before sinking too much time into exploring this.

[seemsright]

Hubby is currently going this route. We do not mind paying for classes but most of the programs have a insane NCA.

He has found Jackson Hewitt to not have the NCA and is free. They just want to have the first chance to hire you after the class.

There are steps to have more certifications to talk to the IRS on the clients behalf.

Yes your options are very limited due to your job. The hoops DH had to go though to make sure he can even take the tax class was insane due to his companies policies. Make sure you have every T crossed and I dotted before you even think about taking the tax class.

[MaybeEA]

As a current fed I assume you have cleared this with the agency ethics counselor? If there are explicit restrictions against self employed returns it may not be advisable to do other types. Additionally if you choose to leave service there may be time limits as well.

I'd suggest a brief conversation with them before sinking too much time into exploring this.

Yes, I’m in the process of doing that now. Awaiting their response. I’ve heard of employees of my agency volunteering with VITA, but that’s dated information and I have no idea if there have been any legal or policy changes since then. Thank you for the info!