| Over 80% of United States taxpayers are now using | | | | ALL paid tax preparers to register with the IRS and |
| either a paid professional or computer software to | | | | get a valid PTIN, which essentially serves as tax |
| assist in preparing their taxes each year. The IRS is | | | | preparation certification from the IRS. The process will |
| interested in knowing who these professionals are as | | | | include a compliance check to ensure that all individuals |
| well as how qualified they are to help the average | | | | charging fees to file others people's taxes have, in |
| taxpayer file his return. | | | | fact, paid up on their own taxes, a veritable no-brainer |
| As it stands now, anybody, with or without a tax | | | | from my perspective. |
| preparation certification, can charge a fee for | | | | The Internal Revenue Service will start requiring all paid |
| preparing someone else's tax return; and while some | | | | tax preparers to complete a competency test. This will |
| of these individuals are licensed by their respective | | | | not be enforced on attorneys, CPA's, and other |
| states or certified by the IRS, there is no mandate in | | | | professionals as long as they are in good standing. The |
| place for any paid tax preparer to meet even | | | | initial competency test will not be the end of things, |
| minimum government or professional certification | | | | however. This certification will also require a pursuit of |
| standards. So basically, anyone claiming to have even | | | | higher levels of ongoing professional education. This |
| a little bit better understanding of tax law and filing | | | | measure also excludes practicing professionals |
| practices can demand a fee for filing my tax return. | | | | (attorneys, CPAs, etc.) who already adhere to industry |
| So after a lengthy six month study, the IRS, in their | | | | continuing education requirements. |
| infinite wisdom, has launched an aggressive effort to | | | | Lastly, the IRS is set to extend the ethical rules outlined |
| reach these free-wheeling tax preparers with higher | | | | by the Treasury Department to include ALL paid tax |
| levels of education and enforcement. The hope is that | | | | preparers. In previous tax seasons, these rules only |
| higher standards for tax preparation will ultimately | | | | applied to attorneys, CPSs, and other IRS-recognized |
| provide greater protection for the droves of taxpaying | | | | agents; but with this extension, the IRS will be able to |
| citizens who seek out some form of support in | | | | discipline any paid tax preparer for 'unethical or |
| navigating the undeniable complexities that tax season | | | | disreputable conduct.' Despite these efforts by the IRS |
| brings. | | | | to standardize paid tax preparation, it is still your task |
| So let's take a look at some for the changes | | | | to seek out a reputable tax preparer. As the taxpayer, |
| proposed by the Internal Revenue Service. The first | | | | you are still legally responsible for the information |
| requirement comes in the form of the Preparer Tax | | | | stated on your return, regardless of who put it there. |
| Identification number, or PTIN. The measure requires | | | | |