Tax Preparers Represent Taxpayers

[joanmcq]

However,

Since non-CPA, attorney or EA preparers CAN represent clients at the lower levels of audit if they prepared the return, IMHO, all tax preparers do have representation authority, and the IRS has full authority to regulate such.

[taxea]

I believe they have the authority under a different statute.

Congress says in IRC §6695 that a tax return preparer must sign a tax return prepared for a client and provide his/her identification number on that return, or pay a $50 per return penalty.

Congress also says in IRC §6109 that the identification number for a tax return preparer shall be whatever the IRS prescribes that number to be. The ID number for a taxpayer can be his/her Social Security number, but the ID number for a tax return preparer can be something other than the Social Security number, as prescribed by regulations.

Thus, at one time, IRS regulations did allow us to use our Social Security number as our ID number on a client’s tax return. But then later, IRS regulations were changed to require us to use PTINs, and in Brannen, the 11th Circuit Court of Appeals on June 7, 2012 ruled that the IRS does have statutory authority to require tax return preparers to use a PTIN and to pay a fee for the privilege of obtaining that PTIN.

Thus, since IRS has the statutory authority under Section 6109 to require the use of a PTIN and HOW to obtain such PTIN, I think the IRS should have used that power to enforce their RTRP regulations. The IRS could have said through their regulatory power that to obtain a PTIN, you also have to demonstrate competency, such as being a CPA, EA, attorney, or passing the RTRP exam, and take CPE each year.

Preparing a return is different than representing a client. This is why preparers other than CPA, EA, ATTY don't use the 2848 which is restricted to those that are regulated by Cir 230.

[taxea]

Since non-CPA, attorney or EA preparers CAN represent clients at the lower levels of audit if they prepared the return, IMHO, all tax preparers do have representation authority, and the IRS has full authority to regulate such.

"lower levels" that's the operative definition that makes them not "representative of" TP under tax regulations.

[Bees Knees]

Preparing a return is different than representing a client. This is why preparers other than CPA, EA, ATTY don't use the 2848 which is restricted to those that are regulated by Cir 230.

If you are following the court case, you will note that the Secretary of Treasury DOES IN FACT believe that preparing a tax return is representing a client. That is the reason why IRS went down the road of regulating ALL tax return preparers.

I happen to agree with IRS. Tax return preparation IS representing a client, as illustrated in the article I linked at the beginning of this thread. Go back and read that article and then explain to me why you disagree with every former IRS commissioner who wrote that article.