Are You Prepared for Tax Preparer Registration?

Source: Journal of Accountancy

Despite concerns expressed by the AICPA and members of Congress, the IRS has issued proposed regulations that would implement much of its plan to register and regulate tax return preparers. Among other things, the proposal would clarify the definition of “tax practice,” establish a new “registered tax return preparer” designation (for preparers who aren't CPAs, attorneys, or enrolled agents), and set forth tax return preparation standards. The IRS is also developing a new online preparer taxpayer identification number (PTIN) application system, which is expected to go live in September.

All tax preparers would have to obtain a PTIN. Also, to become a registered tax return preparer, individuals other than CPAs, attorneys, and enrolled agents would have to pass a minimum competency examination.

The AICPA has submitted extensive comments on the proposal. Among other things, the association has urged the IRS to exempt CPA firms from the registration requirements for “non-signing” tax preparers and to delay implementation of the competency exam until it has been demonstrated that such an exam is necessary.

For the complete article, click here and read “IRS Moves Forward With Preparer Registration Plan.”

From Journal of Accountancy, American Institute of Certified Public Accountants, August 19, 2010, www.journalofaccountancy.com.