Preparer Registration Raises Concerns In Congress

[Edward]

From NATP TAXPRO WEEKLY, 8/12/10: "Last week 31 members of Congress sent a letter to Treasury Secretary Timothy Geithner expressing concerns on two provisions in the IRS proposal regulating tax preparers. The concern raised was with regard to the registration of nonsigning preparers and the competency testing requirement. The Congressmen stated that the competency testing requirement may impose unnecessary burdens on the IRS' limited resources and tax return preparers and ultimately increase taxpayers costs for return preparation. They also are not convinced that testing will eliminate some of the problems the IRS has identified within the tax preparation industry and they do not believe the IRS has adequately demonstrated that testing is needed. They feel that once the PTIN and registration system is operational, the IRS will have the resources necessary to track preparers and determine which ones need discipline. Their concerns are not unlike the concerns NATP has expresssed from the beginning of this process. As always, NATP will keep you informed as these issues develope."

[Uncle Sam]

Preparer Registration

Isn't that too bad?

After attempting to find a way to regulate the profession from unscrupulous preparers these idiots are now looking to protect the very people for whom the registration was meant for.

If you don't have qualifications - you shouldn't be preparing returns.

This is one reason I refuse to be a member of NATP - protecting the interests of the unlicensed.

This is also why I have remained only a paper member, and have refused to actively participate in NSA - where because of financial hardships of the organization - are willing to take in anyone - regardless of their license (or lack of one) or credentials, and expect to simultaneously protect the interests of multiple classes of practitioners.

[MAJ]

If congress is presenting it.... then...

Isn't that too bad?

After attempting to find a way to regulate the profession from unscrupulous preparers these idiots are now looking to protect the very people for whom the registration was meant for.

If you don't have qualifications - you shouldn't be preparing returns.

This is one reason I refuse to be a member of NATP - protecting the interests of the unlicensed.

This is also why I have remained only a paper member, and have refused to actively participate in NSA - where because of financial hardships of the organization - are willing to take in anyone - regardless of their license (or lack of one) or credentials, and expect to simultaneously protect the interests of multiple classes of practitioners.

THere's an alternate agenda. They don't just decide oh.. That's not fair. Lobbyists are pushing this. Which means one thing. How does the testing impact the standard H&R or JH Employee? If this puts additional testings costs on them or their offices then their employee base will hurt.

I for one only see good out of it. However, I do agree that in many ways many non signing preparers will continue to function. Their client know they don't sign and could care less. They are paying less & that's all those clients care about.

I know someone that works for H&R & has a practice on the side - They can't sign because of H&R Block rules. That hole thing drives me nuts. How will that impact them? It won't.

I've been registered for a few years. You used to be able to go to IRS & Look up by Zip PTIN holders. I can't seem to find that link anymore - I think they took it down. Anyone else find it recently?

[New York Enrolled Agent]

From NATP TAXPRO WEEKLY, 8/12/10: "Last week 31 members of Congress sent a letter to Treasury Secretary Timothy Geithner expressing concerns on two provisions in the IRS proposal regulating tax preparers. ...
As always, NATP will keep you informed as these issues develope."

What NATP did NOT tell you is that the letter was directed primarily to the interests of CPAs. Does anyone think these 31 members did this on their own? Or do I sense lobbying by the AICPA?

http://www.macpa.org/content/Public/Documents/PDF/Geithner.pdf

[taxea]

Leave it to Congress to attempt to screw up the best thing that has happened in this profession in eons!

[gkaiseril]

Which means one thing. How does the testing impact the standard H&R or JH Employee? If this puts additional testings costs on them or their offices then their employee base will hurt.

H&R Block's company offices have had mandatory class and testing requirements for years. The IRS has recognized some of this training for EA CAPE requirements. H&R Block even offers an EA preparation course for the EA exam.

I know someone that works for H&R & has a practice on the side - They can't sign because of H&R Block rules. That hole thing drives me nuts. How will that impact them? It won't..

Do not CPA firms have similar restrictions on their professional staff? Many professional and industrial companies have non-compete agreements written into their employment contracts. Even the IRS prohibits their employees from outside employment and tight restrictions for any tax related work outside of the IRS. I am aware that in the past that some IRS tax agents did outside returns and did not sign them.

[Bees Knees]

The fact is, some of the worst offenders are licensed CPAs and licensed EAs...people who have already been tested.

All NATP is doing is pointing out that more regulation means more burden on those who already follow the rules. Those who do not follow the rules will continue to find ways to screw things up.

As far as I am concerned, let the new testing take place. Let all the new regulation and restrictions burden the tax industry. I plan on doubling my fee the minute preparer registration is required, and my clients will be sent letters explaining why tax preparation just got a whole lot more expensive.

You might also want to consider that other costs in this industry are also going to go up. You think software companies aren't thinking the same as me?

[zeros]

Software Going UP?

The fact is, some of the worst offenders are licensed CPAs and licensed EAs...people who have already been tested.

All NATP is doing is pointing out that more regulation means more burden on those who already follow the rules. Those who do not follow the rules will continue to find ways to screw things up.

As far as I am concerned, let the new testing take place. Let all the new regulation and restrictions burden the tax industry. I plan on doubling my fee the minute preparer registration is required, and my clients will be sent letters explaining why tax preparation just got a whole lot more expensive.

You might also want to consider that other costs in this industry are also going to go up. You think software companies aren't thinking the same as me?

I would think if the licensing requirements causes a lot of preparers to drop out, that the tax software people would have to raise prices to make up for the loss of business. Was the reason for the licensing to weed out the dishonest preparer? Are the dishonest preparers numbered mostly among the unlicensed?

[tpnl]

Congress or IRS doesn't care . . .

about correctly prepared returns. If all returns were prepared "correctly" many people at the IRS would be out of a job. This is a money grab by the GOVT to make us pay a TAX.

By the way, the IRS produces a list of the most fraudulent items, why not just target those. Audit everyone who takes the home office deduction, audit everyone who takes EIC, audit everyone who takes mileage, audit everyone who has rental property, and so on. I would fall into this category and get audited, but people would think twice about taking deductions they should not be.

[JohnH]

Bee is absolutely correct about pricing. It's all about supply & demand. If the supply of licensed preparers goes down and the demand for their services remains fairly constant, then price increases are justified and inevitable. If demand for tax prep services happens to increase, then even larger fee increases will be the norm. This will not be the time to be timid about charging what the market will bear for your work.

[DaveO]

I see the major problem with testing to be with those people who only prepare payroll forms. I see no benefit to them getting 1040 training and testing if they never prepare a 1040 for pay.