MukatA

Yes, you can do tax returns.
You need to get PTIN from IRS (for free), which you will use on the tax return instead of SSN.

perini1975

what about the business tax returns part of the question - can I fill out business tax returns? where can i learn about what needs to be done for these returns?

AtlantaTaxExpert

Given your accounting background, and with the purchase of a good professional-level tax software package, setting up a business to prepare individual returns should NOT be a problem. To date, there is no specific licensing or testing requirement to prepare federal returns.

You MAY have a licensing requirement to prepare NJ returns within the state of New Jersey, however. A visit to the NJ state tax website should resolve that question.

Since it is likely that you will also prepare New York state tax return, note that there is a new requirement to register with the NY state tax department and pay a $100 fee to enjoy the right to prepare NY state tax returns. See the link below for more information, though NY state is NOT YET accepting registrations.

New York State tax preparer registration

perini1975

Could you elaborate on the "Good professional level tax software package" - it seems like there are too many out there in market, and i can not decide which is best for me to be able to 1) fill number of diff tax returns using the same software and 2) be able to efile for all customers right through the package - let me know.

also, how do u market your services? word of mouth is definitely one way but what else do you do?

AtlantaTaxExpert

I use the professional version of TaxAct, which serves my needs quite well.

It has an excellent interface, supports the state tax returns for every state that has a state income tax, is fairly priced (for BOTH the software and the efile option), plus they have software packages for corporate and partnership returns.

It is NOT as sophisticated as some of the more expensive tax software packages (which can cost as much as $4,000), but I have not had a need for that level of sophistication.

How you market depends on your target audience.

If you are going to compete with H&R Block, Jackson Hewitt and Liberty for the average taxpayer, you need to advertise in your local paper, put out flyers, take out ads in your church bulletin, etc.

If you targeting a niche market, or only want to work high-end returns (small business, corporate, partnerships), you need to specifically target that niche.

You should definitely join the National Association of Tax Professionals (National Association of Tax Professionals), because they offer, research, support and training, plus they publish a monthly newsletter and a quarterly magazine which offers guidance on how to run and market your practice.

perini1975

Tax Software for CPAs, Accountants, Tax Professionals, Prepare & Efile Income Taxes : TaxACT

on this page, there are a number of options which has me confused - like preparer's 1040, Preparer's 1040 state, 1065 and 1065 state etc. how do i pick the one I would need? do I need to buy all of them?

There are also 1040 Enterprise and 1040 Edition bundles...can't decide which one I need especially since i am just starting out and don't even have the first customer in door yet?

AtlantaTaxExpert

Perini1975:

For sure, buy the Preparer's 1040.

You will also at least need the NJ and NY state return programs. That will run you about $28. You can probably expect to prepare returns for Pennsylvania and Connecticut as well. This being the case, it would be best for you to buy ALL of the state return programs for a low $52. Even if you do NOT use more than four state return programs in the upcoming tax season, you WILL prepare 2009 returns (both federal and state) in future years when someone hires you to prepare back tax returns or to amend incorrect returns already filed.

Avoid the Enterprise editions for now.

I would not buy either the 1065 or the corporation returns software until someone walks through the door and hires you to prepare a partnership or corporate return. You will be able to buy this software when you need it anytime in the next five years with no problem.

Five Rings

You may wish to consider studying to becoming an Enrolled Agent as you get your business rolling. It's not easy but it will put you head and shoulders above the run of the mill tax preparer. See:
Enrolled Agent Information

As to tax programs I like Drake.

AtlantaTaxExpert

Drake IS an excellent tax program (I have reviewed their read-ahead software), but it is rather expensive IMHO.