Tax preparation refers to preparing several types of tax returns, the most common of which is an individual's income tax return. Tax preparation is typically performed for individuals other than the taxpayer and is typically done in exchange for payment. Tax preparation can be done by the taxpayer on their own, either with or without the assistance of tax preparation software and online services.
Tax returns can also be prepared by an unlicensed tax preparation service, in addition to being prepared by a licensed professional such as a certified public accountant, an enrolled agent, or an attorney. Many taxpayers in the United States request help with their taxes from a third party due to the perception that the regulations governing the United States income tax system are difficult to understand.