Are You Prepared for the New Tax Preparer Rules?

Source: Journal of Accountancy

The target date for beginning implementation of the IRS's proposed registration requirements for paid tax preparers is September 2010. Here are some things you should know:

The registration requirements apply to all preparers, including CPAs, attorneys and enrolled agents, although these professionals are exempt from the new testing, criminal background check and CPE requirements. Note, however, that CPAs considered "inactive" will be subject to testing.

 All preparers must have a Preparer Tax Identification Number (PTIN) and include that number on any returns they sign.

The requirements are not limited to preparers of income tax returns. They also apply to preparers of payroll and other returns.

The IRS has indicated that employees who prepare business tax returns for their employer will not be subject to the new requirements.

For the complete article, click here and read "Registration of CPAs, Other Paid Tax Preparers to Start in 2011."

From Journal of Accountancy, American Institute of Certified Public Accountants, May 2010, http://www.journalofaccountancy.com/Issues/2010/May.