IRS Fingerprinting For Registered Tax Preparers

[Peachie]

Good afternoon fellow preparers:
I am really getting a bit tired of having to pay all of these extra costs to prove that I am a legitimate tax preparer.

First, I had to pay to get the same number I’ve had for many years to disguise my social security number from unsavory person’s intent on causing harm. Now, they want us to pay to be fingerprinted when we had to submit our fingerprints to become Electronic File Originators early on. What is going on? In addition, I learned recently, I am paying an additional $135 per year for sanitation because I am a home-based business. Are you kidding me? I don’t even use the twice weekly pick up—why am I paying extra.

I am venting now because I am just so frustrated. This is an attempt to line the coffers of the U.S. Government. It has little to do with trying to weed out unscrupulous tax preparers. I understand in the scheme of things I am just a bit player in this game of getting the small guys out, but the income I earn preparing returns is modest but it is a good supplement to an income that’s modest as well. Let’s not forget-this is something I have loved to do since I was 17 years old. It’s as bad as telling someone they can no longer drive because they are 80 years old.

It saddens me that I may be giving up a profession I love. It’s beginning to not be cost effective.

Share your thoughts with me. I don’t need to be attacked. Be constructive and humor me, please.

Thanks.

Peachie

[lenboush]

I honestly do sympathize with you. It is going to be very difficult for a lot of folks who have been doing this for years.

I also agree that, for the most part, this is just another bureaurocratic nightmare that won't accomplish nearly what the powers that be think it will.

I further know for a fact that there are many, many unlicensed preparers out there who are not just good, but are exceptional tax practitioners. One of the best tax preparers I know has never taken the EA exam or any other testing.

Having said all of that, I also believe that there are an extremely large number of preparers out there who have no business being in this business. I know some personally. Further, I don't think it necessarily has anything to do with how long they have been in the business. I have hired or worked with too many preparers over the years who just never grew. I used to say that there are people who have 10 years of experience and other who have one year of experience 10 times over because they never grew beyond the first year level.

With that thought in mind, grandfathering would not solve the problem. On the other hand, I also feel that licensing will not solve the problem to the extent the bureaucrats think it will but I do think licensing is at least a start towards a resolution.

I know it is a trite argument but it is a fact that the barbers, hairdressers and other individuals with far less responsibility than a tax profession must already be licensed. It is my humble opinion that licensing, including testing is long overdue.

[joanmcq]

The federal government has nothing to do with your garbage issues. Sorry, but complain to your city/county or whomever runs that.

I think the registration and licensing is long overdue. As lenboush mentioned, your barber or hairdresser requires more licensing than tax preparers have, and I needed to get fingerprinted to sell cars in CA. And get a special photo ID as well.

And I have long been paying much more for my CPA license and the required CPE (also much more than you will be required to have) as well as all the other costs of doing business; $300 per year biz license, increases in software costs...even paper this year since the bulk of my clients had to paper file due to the new RDP rules for community property. I also had to pay to get the same PTIN as I've had since they were offered.

It's a cost of doing business. If you can't raise your fees or otherwise recoup the costs, then yes, it's time to get out. We as practitioners should know, or should know, the basics of how to run a business.

[Gary2]

I generally agree with the cost of doing business comments, but I'm wondering about the value of fingerprinting. Are fingerprints normally required for attorneys or others who represent people before government agencies or courts? Or is this something new for the tax preparation business?

[JG EA]

EA's didn't have to be fingerprinted, at least when I became an EA.. And because I was an EA I didn't have to get fingerprinted for efiling.

I got my first finger printing when I got my passport.

[S T]

Fingerprints

Well I didn't have to have my fingerprints for my EA in 1982 (at least not that I remember), but I certainly have enough of them on record, for all of my many other licenses, such as Insurance License, and Notary, Drivers License, and I am sure a few others in there somewhere.

With technology, all of my fingerprints should now be in a Central Data Bank Heaven help me if my fingerprints end up at a crime scene that I didn't attend (oops to much CSI TV programs)

I would guess IRS like any other licensing agency needs to start somewhere - so now the accumulation of much information. Afterall they are now suppose to be accountable and assisting those of us that are "Professionals" from all of the around the street corner, Turbo Tax, Back room Barber Shop "preparers"
- Whether this program will work or be better, it is anyone's guess.

Peachie, I feel your pain on fees, but between these fees and your CPE credits needed, you will have to find a way to raise your fees on your clients $ 5-$10 or ?? to offset

On your sanitation problem, maybe call another Service Provider - not sure about your licensing as a Home Based Business - I guess I wouldn't have told anyone

Hang in There, you will find a way!

Sandy

[Black Bart]

Hey Joan,

Good afternoon fellow preparers...I am just so frustrated...the income I earn...is a good supplement to an income that’s modest as well...It’s beginning to not be cost effective.

Share your thoughts with me. I don’t need to be attacked. Be constructive and humor me, please.

...It's a cost of doing business. If you can't raise your fees or otherwise recoup the costs, then yes, it's time to get out...practitioners should know...how to run a business.

In New York people get tea and sympathy; here in Arkansas they get a glass of water and a kind word; whaddaya call this California version?

[taxea]

" I am paying an additional $135 per year for sanitation because I am a home-based business. Are you kidding me? I don’t even use the twice weekly pick up—why am I paying extra."

I fortunately don't pay for garbage pickup and I too have a home business. I can tell you that since I send all papers to a professional shredder the family of 7 next door uses their garbage cans a lot more often than I do. I would certainly contact the city and complaint. The service should be based on how much you use it not what you do at home!

As for the fingerprinting, join the crowd of teachers, cops, govt employees who all have to be printed to keep their job....IRS needs a valid way to ID us. E.A.s are printed when they apply. Cop shops used to do it for free.

[Bonnie]

I was fingerprinted when I got my origianl PTIN. Went to the local Police Station and they did it for me and I mailed it to the IRS so didn't cost a thing. Are we expected to do this again? Hadn't heard.

[taxea]

I was fingerprinted when I got my origianl PTIN. Went to the local Police Station and they did it for me and I mailed it to the IRS so didn't cost a thing. Are we expected to do this again? Hadn't heard.

I don't think so...they don't need your fingerprints on file more than once...

[S T]

New

Beginning in the Fall of 2011, the IRS will require that all "registrered tax return preparers" submit their fingerprints for a background check. Seems like the fees for fingerprinting will vary depending on the vendor - maybe $ 60 to $90

Another notice said that Daon, was a worldwide provider of identity assurance was awarded a contract with IRS. and they are suppose to offer a cost-effective way - works closely with "some" of The USPS Stores locations.

See http://www.irs.gov/taxpros/article/0,,id=238830,00.html

I hope this info helps

Sandy

[VT-EA]

And the contracts for testing and fingerprints are without charge to the IRS!

https://www.fbo.gov/index?s=opportunity&mode=form&tab=core&id=95ad45657c05b54a7f1555d7ae533cea

https://www.fbo.gov/index?s=opportunity&mode=form&id=95ad45657c05b54a7f1555d7ae533cea&tab=core&_cview=0

[Mike Mac]

Which Finger??!!

If I'f have to pay to get finger-printed again, I know what finger I'd send them!!!

[taxxcpa]

Fingerprinting

I see nothing wrong with fingerprinting. However, the IRS should not be requiring people to pay a fee for a PTIN. The fee is fairly small, but, it seems to me that the IRS should be paying people to become EAs or CPAs or some other category that requires testing and proof of competency. If it were not for tax preparers, and everyone had to do their own tax return, just imagine how difficult it would be to administer the IRS and audit the numerous returns of people who can't add two and two.

[kpangelinan]

The federal government has nothing to do with your garbage issues. Sorry, but complain to your city/county or whomever runs that.

I think the registration and licensing is long overdue. As lenboush mentioned, your barber or hairdresser requires more licensing than tax preparers have, and I needed to get fingerprinted to sell cars in CA. And get a special photo ID as well.

And I have long been paying much more for my CPA license and the required CPE (also much more than you will be required to have) as well as all the other costs of doing business; $300 per year biz license, increases in software costs...even paper this year since the bulk of my clients had to paper file due to the new RDP rules for community property. I also had to pay to get the same PTIN as I've had since they were offered.

It's a cost of doing business. If you can't raise your fees or otherwise recoup the costs, then yes, it's time to get out. We as practitioners should know, or should know, the basics of how to run a business.

I'm with Joan and this post on this one.....I've read all the replies and I also believe it's long past due. I spend thousands of dollars and countless hours obtaining CPE's for my license, not to mention the schooling to obtain it in the first place.

Cost of doing business for sure.