Professional tax software, or professional tax preparation software, is used by tax preparers, CPAs, and enrolled agents to file individual and business tax returns.
It streamlines the tax preparation process, ensuring high accuracy and compliance. Professional tax software can be deployed on-premise or in the cloud and sync with individual or business accounts to import transaction data automatically.
Professional tax software shouldn’t be confused with corporate tax software as they serve different purposes and cater to distinct taxpayer groups.
Corporations and enterprises use corporate tax software to handle complex taxation. Whereas tax professionals and firms who prepare and file tax returns for individuals and businesses use professional tax software.
These solutions provide robust features such as automated tax calculations, e-filing options, error-checking, and integration with other accounting software.
To qualify for inclusion in the Professional Tax category, a product must:
Manage client information, such as tax identification numbers, filing status, etc.
Calculate and file individual or business tax returns and oversee compliance
Import data from accounting software, previous tax returns, and other sources
Offer multiple tax forms across federal, state, and local tax programs
Provide built-in e-signature functionality to obtain client signatures
Provide tax reporting and planning based on current and historical information
Include payment option to collect, refund, or deduct fees from return