NATP Discussion Paper

[BHoffman]

Discussion Paper Submitted to the House of Representatives Committee on Ways and Means Subcommittee on Oversight on July 28, 2011:

http://waysandmeans.house.gov/UploadedFiles/Cinquemani.NATP_testimony_July_28.pdf

In regard to non-CPA and non-EA preparers:

“They believe they are being singled out as though they’re responsible for all the unscrupulous behavior and incompetence in the preparation of tax returns,” said the paper. “They believe that all of the effort and resources expended in this process will have little effect in ridding the system of the incompetent and/or unscrupulous. They believe that they’re being unfairly punished and that they’re put into the same category as mobile scam artists that proliferate from January 15 through April 1. They believe they’re being discriminated against on the basis of credentials. They believe they’re effectively being governed by professionals that would like to put them out of business. They are going through ‘test anxiety.’ Since the average age of our members is 56 years old, it’s been quite awhile since they’ve had to take an exam. Some of them have indicated that they will work right up to December 31, 2013 and then retire. Others will sell their businesses. Some are studying to pass the EA examination so that they’re part of the 'governing group.' For some, the lack of due process and the restraint of trade provisions in revised Circular 230 were the last straw. They talk of taking to the courts.”

[okie1tax]

NATP Paper

Thought it was the best of those presented.

[oceanlovin'ea]

education

My thoughts are that anyone preparing tax returns for other people need to have training and education.
As an EA, we are required by the government and by NAEA (if we belong) to take a certain number of continuing education credits each year to keep up to date with new laws and to refresh us on aspects we might not deal with everyday.
CPA's also have to have continuing education, although it doesn't have to be only in tax preparation.
So why should they NOT be required to have continuing education so that they are qualified?
No one is trying to run them out of business or single them out. We just want them to be qualified too.

Linda, EA

[BHoffman]

I think you have to have letters after your name to really, really screw something up

[Burke]

My thoughts are that anyone preparing tax returns for other people need to have training and education.
As an EA, we are required by the government and by NAEA (if we belong) to take a certain number of continuing education credits each year to keep up to date with new laws and to refresh us on aspects we might not deal with everyday.
CPA's also have to have continuing education, although it doesn't have to be only in tax preparation.
So why should they NOT be required to have continuing education so that they are qualified?
No one is trying to run them out of business or single them out. We just want them to be qualified too.Linda, EA

I don't have any problem with these requirements. Face it, we are interpreting tax law all the time, as well as researching opinions, CCA's, regulations, judgements, court cases, if we are doing our job. There should be some measurable expertise here -- CPA, EA or not.

[okie1tax]

NATP Paper

I guess one of the points I picked up on was that they are concerned that the person "doing" the tax return does not necessarily have to pas the exam, the person who "signs" the tax return does have to have initials after their name. I don't think they are saying they don't want to take CPE, just that IF they do , why should not those who prepare returns for a CPA,EA or Attorney? Also, if your local hairdresser or barber can give tax "advice" why can't they?
I think they just want the playing field to be reasonably level.

[Uncle Sam]

NATP Paper

You must remember - NATP represents multiple conflicting classes of membership - and of course, in my opinion, they're going to promote agenda to accommodate the lowest level of member with the least amount of credentials to build their power base.
Cut to the chase - their fear is of failing a standardized exam to measure competency - so they'll find a number of excuses to avoid having to knuckle under to professional discipline.
To those who will wait until 12/31/13 and close up shop - it leaves more opportunity for those of us already credentialed (licensed) people to provide service to those clients.
Right now - EAs, CPAs and Attorneys, have to pay for liability insurance, license fees, continuing education - where most of these uncredentialed NATP people and totally unaffiliated people don't.
The whole goal for this Registered Tax Return Preparer program is to put preparers not already on the radar screen - into the view of tax regulators so they've got more control over the quality of preparers. It's not foolproof and won't guarantee anything. But it at least is a start.

[erchess]

Reactions

I understand that some people have trouble translating their knowledge and skill into a standardized test. Adequate study should overcome this problem.

People who are credentialed as CPA, EA, or Tax Attorney can be incompetent and/or unscrupulous. Furthermore most of the unenrolled who do returns openly probably do good honest returns. On the other hand, most of the incompetent are unenrolled and possibly also most of the unscrupulous. Also an enrolled person was under the old rules easier for the IRS to track, and in the case of NAEA members and all CPAs and Tax Attorneys had professional organizations riding herd on them. Too, under the old rules an enrolled person received harsher consequences for the same wrong action. Both of those situations should move more toward fairness under the new rules.

The preparers who do the greatest harm as a group are probably the non signing preparers. The current changes do nothing about this problem. To me it seems that the problem could be cleared up if the IRS really cared. Just lessen the consequences for "self preparers" caught in the wrong who claim under penalty of perjury that they paid someone else to do their return without signing it and provide the individual's home or work address. Then seriously go after the people named by a significant number of taxpayers.

[Uncle Sam]

NATP Discussion Paper

The one way to control a good part of the abusive preparers - is to mandate to the software companies that no printouts of their software data can be printed out unless the tax preparer's block has been completed with a legitimate PTIN, EI# and preparer name and address, or a checkbox that the preparer was the taxpayer.

[S T]

Including

Turbo Tax
self prepared returns should have a special PTIN signature

Sandy

[okie1tax]

Cpe

This is one of the major issues the NATP has, that someone who works for a CPA, EA, or Attorney, does NOT have to take the exam OR any CPE. See Notice 2011-6

http://www.irs.gov/pub/irs-drop/n-11-06.pdf

[Davc]

CPA's also have to have continuing education, although it doesn't have to be only in tax preparation.

Actually, none of it has to be in taxation.