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Tax Preparers Speak Out Against New Regs, File Suit Against IRS

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    #16
    Originally posted by Koss View Post
    . But there is a valid question here.
    Can't deny that aspect.

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      #17
      Originally posted by Lion View Post
      Exactly, IRS Teleforums are free and need just a telephone, so even that 80-year-old plaintiff without a computer can get free credits. Not to mention, that since he does not use tax prep software, he is NOT required to e-file, so does not have to purchase $1,000s of equipment.
      Just because he doesn't use tax software he's not required to efile?

      I really think all paid preparers who file 10 or more; or is it more than 10?, are required to efile.
      ChEAr$,
      Harlan Lunsford, EA n LA

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        #18
        Originally posted by ChEAr$ View Post
        Just because he doesn't use tax software he's not required to efile?

        I really think all paid preparers who file 10 or more; or is it more than 10?, are required to efile.
        Maybe Lion's post turned on the definition of "file." No computer, no e-filing, so if no mailing by tax preparer, no "filing." (Is that where you were going, Rita?)

        http://www.irs.gov/taxpros/article/0,,id=231871,00.html

        3. Who is a specified tax return preparer?
        A specified tax return preparer is a preparer of covered returns (see below) who reasonably expects to file 11 or more covered returns in a calendar year. If you are a member of a firm, see below. The requirement does not apply to individuals who do not meet the definition of “tax return preparer” under the Internal Revenue Code and related regulations, such as an individual who provides tax assistance under a Volunteer Income Tax Assistance (VITA) program, a person who merely prepares a return of the employer (or of an officer or employee of the employer) by whom the person is regularly and continuously employed,...

        5. What tax returns are covered by the requirement?
        The requirement applies to any return of income tax imposed by subtitle A of the Internal Revenue Code on individuals, trusts, or estates, such as Forms 1040, 1040A, 1040EZ, and 1041. Forms 1040NR, 1041QFT, and 990T (when the exempt organization is a trust subject to tax on unrelated business taxable income under section 511(b)) also meet the definition of a return of income tax, but because these forms cannot be electronically filed at this time they are exempt from the requirement, and do not count towards the 11-return threshold. See also FAQ 19 for other returns that cannot be e- filed at this time.

        6. What does reasonably expect to file mean?
        When computing this number, estimate the number of covered returns you reasonably expect to prepare and file (or if you are a member of a firm, the firm reasonably expects to prepare and file) in the calendar year. See FAQ 7 for “When an income tax return is considered filed by a tax return preparer.” Do not include in this estimate the number of returns that you reasonably expect your clients (or the firm reasonably expects its clients) will choose to have completed in paper format and will submit (e.g., mail or otherwise deliver) to the IRS themselves. Also, do not include in this estimate the number of returns that you expect not to be able to electronically file for various reasons, e.g., a form not accepted in IRS e-file. See FAQ 19. This estimate is your reasonable filing expectation.

        7. When is an income tax return considered filed by a tax return preparer?
        For purposes of this electronic filling requirement, a return is considered filed by a tax return preparer or specified tax return preparer if the preparer or any member, employee, or agent of the preparer or the preparer’s firm submits the tax return to the IRS on the taxpayer’s behalf, either electronically or in non-electronic (paper) form. For example, the act of submission includes the preparer or a member of the preparer’s firm dropping the return in the mailbox for the taxpayer. Acts such as providing filing or delivery instructions, an addressed envelope, postage estimates, stamps, or similar acts designed to assist the taxpayer in the taxpayer’s efforts to correctly mail or otherwise deliver an individual income tax return to the IRS do not constitute filing by the tax return preparer or specified tax return preparer as long as the taxpayer actually mails or otherwise delivers the paper individual income tax return to the IRS.

        Comment


          #19
          Thanks Bees!

          I think the preparers in the article all failed the test! LOL. Such exaggerations by the preparers. Tax Attorney should know better.

          Actually, I welcome the test. In preparing for it, I have learned many things that I haven't confronted in a while or never. Circular 230 is just common sensical things that you can apply to many professions. I look forward to having the designation RTRP after my name-yes, professionally, but also personally.

          Why preparers are having a problem with this test is beyond me.

          Peachie

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            #20
            Form 8944

            Economic hardship:

            http://www.irs.gov/pub/irs-pdf/f8944.pdf

            Also, a couple of wordy 2011-25 and 2011-26 I think the numbers are, but the instructions right in Form 8944 are more direct.

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