Capitol Hill Tax Beat!

This writer was on Capitol Hill recently for the unveiling of a major milestone for the benefit of the Tax Paying general public.

Currently, anyone may prepare a federal tax return for anyone else and charge a fee. While some preparers are currently licensed by their states or are enrolled to practice before the IRS, many do not have to meet any government or professionally mandated competency requirements before preparing a federal tax return for a fee.

It was announced that new rules are coming to regulate the Tax Preparer community which would mean protection for the general public in many more ways than one.

Rule No. 1

The requirement that all paid tax return preparers that sign a federal tax return will now be required to register with the IRS and obtain a unique tax preparer tax identification number.

Rule No. 2

Competency tests will be administered for all paid preparers before they are permitted to prepare tax returns for the general public with no exceptions and no grand-fathering.

Rule No. 3

Requiring ongoing continuing professional education for all paid tax return preparers. There is an exception for Enrolled Agents who are already subjected to this requirement.

Rule No. 4

Extending the ethical rules found in Treasury Department Circular 230 to all paid preparers. This expansion would allow the IRS to suspend or otherwise discipline tax return preparers who engage in unethical or disreputable conduct.

This Journalist holds a M.B.A. degree in Taxation and is Licensed to Licensed to Practice before the I.R.S. For Church Seminars and Information: 212-560-7177.