How do I register as a tax preparer in Maryland?

Step 1. Check whether you must register. Maryland law says you must be registered by the Board before you do individual tax return work in the State, with exceptions in the State Government Article. The law covers preparing, advising or assisting in the preparation of, or taking final responsibility for, another person's federal or State income tax return for pay. The Board exempts actively licensed CPAs, IRS enrolled agents, attorneys in good standing, and state, local and federal employees doing tax return services as part of their duties.

Step 2. Confirm the basics. The law says an applicant must be of good character, at least 18 years old, and have a high school diploma or have passed an equivalency exam. Unless another route in the law applies, the applicant must also pass the Board's exam. First-time applicants file the Maryland application first, then add the supplement for the route they use: the exam, 15 years of experience, or the RTPR exam waiver.

Step 3. Pass the exam. PSI Examination Services administers the Maryland tax preparers exam. It is an open book exam, it costs $78 and the passing score is 70%. The Board says test takers can schedule up to one day before the date they want, and PSI sends the scores to the Board.

Step 4. Hold a current PTIN and pay the fee to register. Registered preparers must hold a current IRS PTIN and send the Board a copy of the PTIN Confirmation Certificate before each tax year begins. The Board lists a $100 fee to register. You renew every two years and need at least 16 hours of CPE then.