What rules/regulations should I be aware of before I start preparing other people's taxes?

Nothing personal, but asking someone with an AA degree in Accounting about taxes is like asking a podiatrist about a tooth ache.

Wait until next year and take a tax prep. course from a local tax preparer. The H&R Block class is the best in the industry.

Besides, why would people come to you for their tax returns? The people who come in early want their money fast which you can not do and the people who come in later in the season are too complex for you without some training.

You will want to see last year's return. This will tell you about deductions for last year's state income tax payment or refund. It will also give you a clue to what interest and dividends there might be. It might clue you into any sales of securities, etc. Read and understand the instructions for the 1040. CCH publishes a Master Tax Guide each year. This really is a great referece book for more complex problems. It is probably too late to get one for this year, but you might want to consider it for next year (2010). They usually are issued in December. Order in August.

You've been working in WHAT field for 3 years, as a tax preparer?

If you have to ask what to tell people to bring to get their taxes done, you shouldn't even be THINKING about doing this.

In some states you have to pass a test and be licensed, but since you don't say where you are, no way to tell that.

If you are going to take pay for doing taxes, be aware you could be sued if you screw them up. You must sign any returns you do for pay. Do you have a PTIN?

Do you plan to do them on paper by hand, or use software? You can't just get TaxAct or TurboTax and do them for pay - you'd be illegally violating the licensing agreement. And professional software is quite expensive.

Laws change every year, be aware of all the law. Getting your feet wet will prepare. In other words if you make a mistake, it can be fixed through amending, but you will remember next time. Be prepared don't over think things, most people now what is tax deductible and tell you. But relax and proceed, experience will come. Just beware of the new and changing law for your state.

If you make a mistake as a paid tax preparer, you are liable for all interest and penalties on the tax return you made a mistake on.

You are not allowed to sign as a preparer.

You must be bonded.

Also, they have CPA's for a reason.