Certified Tax Preparer

[joanmcq]

They can't 'certify' their preparers. They can REGISTER them, but only CPA's can use the term 'certified'.

Read Circ. 230.

[David1980]

They can't 'certify' their preparers. They can REGISTER them, but only CPA's can use the term 'certified'.

Read Circ. 230.

I'm not sure on that one actually. EA, ERP, RTRP in describing their professional designation, may not utilize the term "certified" or imply an employer/employee relationship with the Internal Revenue Service.

It goes on to give acceptable descriptions for EA, ERP, and RTRP. The way I read that, you cannot say that being EA, ERP, or RTRP makes you "certified" with the IRS. However, if I were a CPA I could obviously use "certified". There's other entities that certify people for various things as well, I would imagine an MCP could still call themselves a Microsoft Certified Professional even if they happened to do taxes (though it would be unrelated, obviously.)

So, I think if Liberty "certifies" their preparers, they probably could call the preparer "Liberty Tax Certified Tax Preparer" meaning that Liberty Tax certified the preparer, NOT the IRS. Totally meaningless designation but sounds good.

Kind of like how all those "guarantee" work. A guarantee to ... what? I HATE that. "Buy our product, it's guaranteed!" Guaranteed how? If it fails you'll eat a snail? That would be one form of a guarantee. Will you replace the product/refund the money? No, simply stating there is a guarantee does not mean that. It could mean that, but the word alone does not imply that. When you're looking to purchase something with a guarantee it's a good idea to see what exactly that guarantee does for you. On tax software for example, the calculations might have a guarantee - up to $500, up to $5,000, that the CEO will eat a snail, and so on. Or on an LCD monitor for example, it may have a guarantee to have no more than 7 bright pixels - which is terrible, who wants 7 bright red/white/blue/whatever dots always on on their screen and be stuck with it?? On the other hand, it may have a guarantee to have 0 bad pixels which is a great guarantee. For how long? Again, it's all in the details.

With respect to certified, the certifying organization is also important. A CPA is a very well established certification done by a recognized organization. On the other hand, what the heck is a RGCE? And Liberty tax certified prepaper? Someone in the know would recognize a company that certifies it's own preparers has a certification worth the paper it's printed on.

Unfortunately the general public isn't always so keen on these things. Words like guarantee, warranty, certified are often enough to go with product A instead of product B even if those words are completely meaningless.

Sorry for the long-winded reply...

[thomtax]

"Kind of like how all those "guarantee" work. A guarantee to ... what? "

This is sort of like the "lifetime guarantee". Although I have never tried to collect on one, I would half way expect an answer such as "Yep - that was obviously the lifetime of it. Since it is past it's lifetime - tough luck"

Or do they mean the lifetime of the company selling it - which is on its last leg and probably will be closed in six weeks?

LT

[Uncle Sam]

Certified "WHAT"?

I might be wrong - but I was under the impression that it was individual STATE professional licensing jurisdiction that dictated authorized acceptable credential titles.

Those "wannabees" who believe it's cute to deceive the public by throwing out a misleading description of their occupation such as "Certified Tax Preparer" even though there is NO such title, should be sanctioned. Even by IRS - for using unauthorized titles without the license or experience or other requirement to back it up.

Years ago - I saw a lawn sign for a "Certified Tax Practitioner". I actually wrote to the state board of accountancy about this - and as long as it didn't state the word accountant or accounting in the title - the board couldn't take any action.
Incidentally - the person who had that sign on the lawn - is now serving jail time for unethical conduct for fraud. (I doubt the sign by itself caused the jail time - but his actions DID).

[luke]

uncle

Sam - I have 2 very impressive looking certficates (from 1990, 1991) stating that I am a "Certified Tax Professional" (from "National Certification Board" & "Institute of Certified Practitioners") - I paid good money for them but I have never used those designations! haha

[DonPriebe]

Certifications and initials are very important.

Don Priebe, CNI [Currently Not Incarcerated]

[ruthc]

Certification

What does that mean? What exactly is being certified?

[thomtax]

What does that mean? What exactly is being certified?

Read the qualification of the company/institute/agency issuing the certificate. They spell out what their certifications are.

LT

[Black Bart]

FYI Liberty Tax Service is certifying all thier preparers and may be using this next tax season for Marketing purposes. Be prepared to explain to your clients what all this means

What does that mean? What exactly is being certified?

I think that John of PA is using the word "certifying" in a broad sense to say that Liberty is getting all its employees ready for next season by having them to apply for a PTIN and take the RTRP exam (he is not saying that "certified" will be part of their title).

As Joan says, they won't be a "certified" anything; they will then be "registered" with IRS and as Bees Knees pointed out, they can then use the designation of RTRP (Registered Tax Return Preparer).

As far as your competitor's use of "certified/registered/super-duper/max-taxer" or any other jazzed-up title harming your business, you can forget about that. Talk to/turn them in if it gives you some personal satisfaction, but as a practical matter, the majority of people neither know nor care what you (or they) call yourselves as long as the prep fee and/or refund amount suits them.

There are exceptions of course (some seek out CPAs/EAs/other specialists for difficult returns) but, in my opinion, it's immaterial to the public at large.

[John of PA]

My mistake, sorry, I meant Liberty is REGISTERING thier preparers, not certifying. This is new where credentials are issued by The Fed Govt. and not the state boards.

[David1980]

My mistake, sorry, I meant Liberty is REGISTERING thier preparers, not certifying. This is new where credentials are issued by The Fed Govt. and not the state boards.

If you mean paying for the prepares to take the RTRP exam, then yeah of course they can do that. I think HRB does the same - a reimbursement as long as you pass.

[okie1tax]

Rtrp

Yes, HRB is reimbursing their preparers, BUT, the main point is that only a person with a PTIN can access a tax return in their software. Once the RTRP exam is fully in operation, end of 2013, unless they have their PTIN even the office manager/supervisor cannot input/change a tax return, is the way I understand it at this time.