Start Your Tax Business Now In Time for the Upcoming Tax Season

The tax season starts in January, so it’s almost here and more than half of the 300 million Americans will be looking for someone to prepare their tax returns. If you have been thinking of starting a tax preparation business, now is the time to do it. There is a market of about 150 million US citizens, who will be willing to have their taxes prepared for a fee.  start-tax-business

Tax business will always be in demand, because the US population continues to swell. There is also no indication that the Tax Code will get simplified or the existing taxes will be reduced. People who are always scared and confused of filing their returns on their own will be asking for your services every tax season. With the introduction of the Affordable Care Act and the complications that come with it, many people that thought they would be able to do their taxes on their own, will be reaching out for help.

Of course, you can’t expect to become successful in your tax business overnight. You will need to work hard before you can get profit; but the important thing is that you start now. Preparing other people’s taxes is a life long job. You may or may not work full time. This means that you may opt to work only during the tax season, which is from January to April or work year long, as businesses are required to file their returns quarterly.

Things That You Need To Start A Tax Business


  1. First thing first, you need to have yourself educated and trained in tax preparation. You may choose to learn on campus or enroll at an online course with instructor support.
  2. Get the documents required by the IRS, such as the:


(a)  PTIN (Preparer Tax Identification Number) and

(b)  EFIN (Electronic Filing Identification Number) – Zip Refund will provide you an EFIN to work under


These ID numbers are issued by the IRS and give you authority to prepare taxes and file them electronically at the agency’s e-services.


  • Choose tax preparation software depending on the type of tax returns that you will be working on, from a simple to a basic software package. This should help you prepare taxes in a manner that is both fast and effective.


  • You will also need space for an office. People’s personal and business taxes are important documents, so you should have a place to work on those and have a meeting with your clients. A home office is ideal for starting your business; and as you gain more clients, you may want to expand to a real brick and mortar office.

As in any other businesses, it will be challenging to start a tax preparer’s business. The result, however, is very rewarding and offers many advantages. The start up cost is very inexpensive.  Acquire a computer, software and some office supplies and you’re ready to go. Your client base will be small, at first, so start offering your services to family and friends and connecting to your locality.  These people will become your repeat customers because they will be coming back year after year.  Make your tax preparer’s business known to as many people as possible in your state, so you can find and add new customers to your current client base.

Let Zip Refund do the majority of this for you. We offer free software, an EFIN to work under, marketing material, the bank products, and so much more so learn more about qualifying with us today.

Certain Characteristics Every Good Tax Franchise Owner Should Possess

Due to its confusing nature, filing of tax returns is a dreadful thing for many Americans. Due to this, they choose to pay for the services of tax preparers’ rather than make the computations and file the returns themselves.  tax franchise

The great number of people, who require the assistance of professional tax preparers has caused the tax franchise business to bloom. So, if you have tax experience of some type , and like working with numbers and people, you may be interested in starting your own tax business. There are benefits to gain from this venture, such as being able to set your own working hours and earning from home. You become your own boss, as this is your own business that you will operate.

However, once you start out as a tax franchise owner, you should show these 3 characteristics in order to be successful in your business. Here they are:

Good Learner

The job does not require any skill sets or educational requirement, but you must display a willingness to learn. In a tax franchise, especially when you are just in the starting phase, there will always be some aspects that require training and continuing knowledge regarding the same. You may be trained by online or off, but it will be up to you to get the required knowledge from either other people or your franchiser when opening a tax business. You need to understand the ins and outs of the business, so be willing to take advice at all times.

Self Discipline

 Yes, you are your own boss; and yes, you are not reporting to anyone. This does not imply that you work, only when it is convenient for you. You must be capable of working hard.  This is important to make your franchise a success. Manage your time effectively; allot specific hours for your personal affairs and also for business. Being the boss of your own business also commands good communication skills with others and dealing with people. These traits will come in your favor and will play a big role in your success and progress.

Not Afraid to Ask For Help When Required

 When you are faced with a difficult issue to be resolved, you should never be afraid to ask for help or advice, either from your franchiser or other people.  When you ask for assistance from others in running your business, you can be relieved of the stress associated with your tax franchise. You can also make your business grow and become successful.

Being trustworthy is another trait that you must possess. Trust and loyalty are important characteristics when dealing with customers and staff and you must be able to maintain these.

Remember that every business carries a risk with it, although the tax franchise has less risk compared to others. Having good judgment is important; this will allow you to assess whether or not something is worth of a risk.

There are many other qualities required when you are starting a tax franchise business, however, as an owner; you should be exhibiting all these characteristics to guide you through success.

Zip Refund can help you as long as you have previous tax experience as it is important to know taxes when operating a tax franchise. Although not an actual franchise, Zip Refund provides you 99% of what franchises offer and a few things in addition. Why pay a large franchise fee when there is a better way.

Obtaining Your PTIN -Preparer Tax Identification Number

A preparer tax identification number must be obtained by a person who, for a fee, prepares or assists in the preparation of individuals’ or the tax returns of a ‘business’, refund claims or other forms of federal compensation. Enrolled agents are also required to have a PTIN. If you already have this number, you must have it renewed every year.   how to get a ptin

You can apply for or renew your PTIN, either online or by mail. There is a list of requirements that you should first make available before working on your application. The list includes the following:

• Your name, mailing address, date of birth and other personal information
• Your Social Security Number
• Your business’ name, mailing address, telephone number and other information
• Your tax return of the previous years
• Credit/Debit card for payment of application/renewal fee. It will be $63 for renewal and $64.50 for initial application (in some sources, it is $64.25)
• Your professional credentials
• Your explanation, if you were convicted of felony. This is necessary so that your identity can be authenticated and
• Your explanation if you have had issues with business tax obligations. This problem and your felony conviction may impact the issuance of your PTIN.

When you apply or renew your PTIN online, you just need to follow 4 steps.

(1) Go to the site and understand the information provided therein.

(2) Follow the instructions given on the site. Create an account (for new application) or log into your account (for renewal), then provide all the required information, as listed above. Make sure that the application form is completely filled up.

(3) Pay the application/renewal fee. The system will direct you to an IRS partner bank where you should pay by debit/credit card.

(4) Get your PTIN after confirmation of your payment by the bank. It usually takes about 15 minutes to obtain a PTIN online.

If you prefer to apply or renew your PTIN by mail, then you need to complete the form w-12 application and renewal manually. Fill in the required spaces and send the form either by mail or delivery service. Enclose a money order or check as payment of the fees. The address to which you have send the form and the money are:

IRS Tax Pro (Preparer Tax Identification Number Processing Center)
104 Brooke-ridge Drive No. 5000
Waterloo, IA 50702.

Processing time for your PTIN can take four to six weeks. So if you want to pursue this profession, see that you abide by all these rules and regulations.


IRS Adjusts Tax Rate and Deduction Levels for 2015

IRS Adjusts Tax Rate and Deduction Levels for 2015

360 WASHINGTON. D.C. (OCTOBER 30, 2014)
The Internal Revenue Service announced the annual inflation adjustments for tax year 2015 for more than 40 tax provisions, including the tax rate schedules, and other tax changes.


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2014 Federal Refund delay FALSE!

Rumor has it! The payment of federal tax refunds for 2014 will be delayed

Rumor has it!
The payment of federal tax refunds for 2014 will be delayed

We have been contacted by many people asking if this article is true or false…..
it is FALSE!


Affordable Health Act Instructions Issued for Tax Preparers

This tax season will be slightly different with the new Affordable Health Cara Act in full force. Here is some preliminary info on the forms that will be needed to be completed.

If you are a Zip Refund preparer then all of this will be in the easy to use process in the software!

IRS Issues New Instructions for Obamacare



The Internal Revenue Service has issued new draft instructions, notices and a publication to help taxpayers and tax practitioners deal with the Affordable Care Act.

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All Accounting Today articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, podcasts, blog discussions, and conference discounts. Registered members may also choose to receive our exclusive Tax Pro Today e-newsletters covering the latest breaking news, opinions from industry leaders and developing trends.


Healthcare Form May Delay Tax Season For Some

Good info for tax preparers to add to their education packet to clients for this upcoming season.






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IRS Start Date 2014 is January 31

Although this is the latest ever the IRS has started accepting returns, they seem to think it will not affect the season significantly. They recently announce their start date to be Jan 31, 2014 for the first efile acceptance. They will not be accepting any returns including paper before that and if someone files by paper, it is more likely to take even longer to get processed.

Last year the season started a week earlier on Jan 24th but this was also later than normal. However, last year the IRS seemed have a good reason with all the last minute tax code changes that occurred with the bill from Congress. This year their are no such changes, so why do you think they have delayed it another week than the initial announced delay and do you think this will be a regular occurrence annually?

IRS start date

IRS Delays Tax Season For the Second Season In A Row

This past week the IRS announced they will be delaying tax season for the second year in a row. Based on the government shutdown, the IRS feels they can not be ready to start accepting returns on January 21, 2014 and must push out the start date a week or two. Some groups including the NCCPAP feel this is ridiculous as there have been no tax law changes and are taking appropriate actions to have tax season start on time including appealing to the IRS to do so…but don;t hold your breath on that.

Based on the politics of the nation changing regularly, tax preparers might want to be ready for anything when it comes to timing this 2014 tax season. There is still a chance that the government will shut down again after the holidays if Congress can not come to agreement on the the debt ceiling and Obamacare, so tax preparers should keep apprised to our site and to the IRS site in order to help their clients the best.

irs delays

Tax Preparers and Obamacare

This upcoming tax season tax preparers will be responsible for discussing the health care mandate under Obamacare and this is sure to cause some confusion. Obamacare states that everyone has to have health insurance or pay a fine. The fine starts out minimal (under $100) and year year will increase for those uninsured.

Tax software companies have been adding health insurance related products for preparers to share with their clients so are you ready for this upcoming change in the Tax industry? You can review the Obamacare mandate compliance form here.

obamacare and tax preparers