Regarding the discussion a couple of weeks ago about whether or not employees of the big box tax prep services would be subject to the new regulations....I sent an email to the person at NATP who is liasion with the IRS. This is his response to my question...I am happy to say that his opinion is...yes! they will.,.......yea!!!!!
Hello Laura –
The Return Preparer Review Report states that only those preparers who are compensated for preparing returns and who are required to sign returns are required to obtain a PTIN and undergo this regulation, to include testing and continuing education. Therefore, I suppose it is possible/likely that “intake” persons at a franchise and data entry people may not be subject to these rules. Circular 230 as well as Code section 6694 and its regulations address “who is considered a tax return preparer.” I don’t know whether the IRS will adopt the same rules for these purposes or not. It would seem logical that they would. A great deal of discussion has been held on this issue…so much so that the Report also states: “Although the IRS initially will require only signing tax return preparers to register, it will consider extending the registration requirement to all tax return preparers, and in particular to non-signing tax return preparers who are not attorneys, CPAs, enrolled agents, or otherwise licensed as tax professionals.” So the answer to your question is that not every preparer employee of franchises will be subject to these regulations initially. I know that’s not what you were looking for as an answer Laura, but that’s where things stand at present.
Paul
Paul C. Cinquemani, MBA, CPA National Association of Tax Professionals (NATP) P.O. Box 8002 Appleton, Wisconsin 54912-8002 920.749.1040 920.968.7417 fax pcinquemani@natptax.com
Hello Laura –
The Return Preparer Review Report states that only those preparers who are compensated for preparing returns and who are required to sign returns are required to obtain a PTIN and undergo this regulation, to include testing and continuing education. Therefore, I suppose it is possible/likely that “intake” persons at a franchise and data entry people may not be subject to these rules. Circular 230 as well as Code section 6694 and its regulations address “who is considered a tax return preparer.” I don’t know whether the IRS will adopt the same rules for these purposes or not. It would seem logical that they would. A great deal of discussion has been held on this issue…so much so that the Report also states: “Although the IRS initially will require only signing tax return preparers to register, it will consider extending the registration requirement to all tax return preparers, and in particular to non-signing tax return preparers who are not attorneys, CPAs, enrolled agents, or otherwise licensed as tax professionals.” So the answer to your question is that not every preparer employee of franchises will be subject to these regulations initially. I know that’s not what you were looking for as an answer Laura, but that’s where things stand at present.
Paul
Paul C. Cinquemani, MBA, CPA National Association of Tax Professionals (NATP) P.O. Box 8002 Appleton, Wisconsin 54912-8002 920.749.1040 920.968.7417 fax pcinquemani@natptax.com