Tax Preparation and Advisory Credentials
Overview
Apart from the CPA exam and the Enrolled Agent exams, there does not seem
to be any exam that can serve as a solid, universally recognized credential for
tax preparation and advising. However, there are several private, industry-
specific certifications that can enhance one’s qualifications in tax preparation
and advising, though they tend to be more niche and less broadly recognized.
Below are some of the credentials available.
Private Certifications
1. Accredited Tax Preparer (ATP)
Offered by: Accreditation Council for Accountancy and Taxation (ACAT)
Focus: This certification is designed for individuals who prepare individual and
business tax returns. It covers more than basic tax preparation, with an em-
phasis on various tax planning techniques.
Recognition: While respected within certain circles, it’s not as widely recog-
nized as the CPA or EA.
2. Accredited Tax Advisor (ATA)
Offered by: ACAT
Focus: This credential goes beyond tax preparation and focuses on tax planning
and tax consulting for more complex tax issues, including estate and retirement
planning.
Recognition: Like the ATP, it is well-regarded in some areas, but doesn’t carry
the same universal recognition as a CPA or EA.
3. Chartered Tax Professional (CTP)
Offered by: The Income Tax School
Focus: The CTP designation is earned through a series of courses that provide
training on individual and small business tax returns, eventually covering more
complex topics such as corporations, partnerships, and advanced tax prepara-
tion.
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Recognition: It’s a good credential for those looking to gain extensive tax
knowledge, but again, it’s not universally recognized.
4. Registered Tax Return Preparer (RTRP)
Offered by: The IRS (formerly)
Focus: This exam was created by the IRS to provide a basic level of competence
for paid tax return preparers, but it was suspended following a court ruling in
2013. The RTRP credential is no longer available, though some preparers still
list it on their resumes.
Recognition: Although defunct, it was originally designed to be a basic cre-
dential.
5. Certified Financial Planner (CFP)
Offered by: CFP Board of Standards
Focus: While not solely focused on tax, CFPs often deal with tax planning as
part of broader financial planning services. This can be an excellent credential
for individuals who wish to offer tax advice in the context of overall financial
strategy.
Recognition: CFP is widely recognized in the financial advisory space, though
not as a tax-specific credential.
6. Certified Tax Coach (CTC)
Offered by: American Institute of Certified Tax Planners (AICTP)
Focus: This designation is designed for those who want to provide proactive
tax planning strategies to individuals and businesses. It emphasizes strategies
to legally reduce tax liability.
Recognition: Gaining popularity in the niche of tax coaching but not as widely
recognized in the mainstream tax preparation industry.
7. Certified Public Bookkeeper (CPB) – with a Tax Spe-
cialization
Offered by: National Association of Certified Public Bookkeepers (NACPB)
Focus: This designation includes specialization in payroll and income tax prepa-
ration, combining bookkeeping and tax preparation skills.
Recognition: Primarily recognized within bookkeeping circles rather than tax
advisory circles.
8. Annual Filing Season Program (AFSP)
Offered by: IRS
Focus: This is a voluntary program for tax return preparers who are not en-
rolled agents, CPAs, or attorneys. Completing it allows a tax preparer limited
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representation rights before the IRS.
Recognition: The AFSP is not a credential but provides a form of recognition
for uncredentialed preparers who wish to stand out in the tax industry.
Private Courses and Credentials
Many tax firms and professional organizations offer courses or certificates in
tax preparation, but these often serve more as continuing education rather than
universally recognized credentials. Some private online platforms like Udemy,
Coursera, and LinkedIn Learning also offer tax-related courses, but these cer-
tificates don’t hold the same weight as government-recognized credentials.
Summary
The CPA and EA exams are the gold standard when it comes to universally
recognized tax preparation and advising credentials. Other certifications like the
ATP, ATA, and CFP offer valuable specialized training, but their recognition
and scope tend to be more limited. Most other credentials come from private
organizations and carry weight only in certain sectors or regions.
