Most of us do not look forward to filing our income taxes every year, but others see it as a part- or full-time income opportunity. If you know income tax filing procedures or are skilled in accounting and good with figures, this may be a good business for you. Of course, most of your business will be from January to April 15th, every year, but many professional tax preparers work for their clients year-round: they file any necessary extensions, help clients keep their records in order, and provide other services that make it easier to file each year's taxes. If this business venture interests you, talk to professional tax preparers, study tax preparation manuals, and survey if there is a need for a preparer in your community.

Start-Up Costs And Financing Sources

* $1,000-$4,000.
* Personal savings, lines of credit on credit cards, loans by family or friends.

Pricing Guidelines

Check with other preparers to see what the going rate per form is. Begin with basic charges for the simplest forms, and then figure a fee for preparing each schedule and additional form. Your fees should be based on the number of forms that the IRS requires to be filed, not based on your clients refund or payment. Some professional preparers charge from $30 to several hundred dollars, depending on the number of forms and time involved in preparing a client's taxes.

Marketing And Advertising Methods And Tips

* Place an ad in the business telephone directory.
* Post flyers on community bulletin boards.
* Place classified ads in the local newspaper.
* Hand out business cards to family and friends to pass on to others.
* Encourage word-of-mouth referrals.
* Put up road signs (if permitted by zoning) by your home office.
* Send direct mailings to business associates.

Essential Equipment

Calculator, tax forms, tax reference manuals, miscellaneous office supplies and equipment, business telephone line with answering machine or service, fax, computer hardware and software (if filing electronically), home office set up to receive clients (unless you rent office space during the tax season).

Recommended Training, Experience, Or Needed Skills

* Enroll in tax preparation courses and seminars.
* Take accounting courses at local schools or community colleges.
* Take home study courses (see below).
* Work for a tax preparation service.
* Need to have attention to detail and be accurate, honest, and patient.

Income Potential

$20,000 to $30,000 a year

Type Of Business

In-home business, unless you rent a temporary office during the tax season

Best Customers

Retirees, couples with complex filing schedules (medical expenses, divorced or separated, rental property owners), small business owners

Helpful Tips

* Make sure you have the proper training, experience, and license to be a professional tax preparer.
* Be current on each year's tax law changes and new forms to be filed. Check with local accountants and bookkeepers for locations of tax forms or updates.
* Contact your local tax and IRS offices and inform them you are a licensed tax practitioner. Ask if they would supply you with the tax forms and instructions.
* Make copies of all prepared returns for you and your client. Put copies in your files.
* Explain each line on the form to your client and have him or her sign and date it and return it in the proper envelope.
* Check and recheck each form you do. Do not be afraid to check with the IRS if you have any questions.

Additional Business Ideas

* Filing income tax forms electronically. Check with the IRS Office nearest you and request publications covering electronic filing procedures. You will need a computer, modem, and tax filing software.
* Tax consultant. Help individuals and couples with tax planning for retirement.