AICPA is now suing IRS re Voluntary program

[AZ-Tax]

Now the AICPA is suing the IRS on the new voluntary program. AICPA says in article "Worse yet, the new rule will do nothing to address the problem of unethical or fraudulent tax return preparers—which should be a top priority". I agree but I also believe the voluntary program is a step in the correct direction.

http://www.accountingtoday.com/news/irs_watch/aicpa-sues-irs-over-voluntary-program-for-tax-preparers-71366-1.html?utm_campaign=tax%20pro%20today-jul%2016%202014&utm_medium=email&utm_source=newsletter&taxpro=1&ET=webcpa%3Ae2830175%3A2578862a%3A&st=email

[taxmandan]

What it will actually do is give the shyster preparers a cover, they get the credential and then have "official" proof of their expertise. At least that's the way it rolls with our state licensing.

[David1980]

What it will actually do is give the shyster preparers a cover, they get the credential and then have "official" proof of their expertise. At least that's the way it rolls with our state licensing.

Well, getting the credential subjects you to circular 230. And unless there's a MAJOR advertising campaign done nobody is going to know what the credential even means. So much of the public assumes all tax preparers are CPAs even if they have no credentials at all. And beyond that, they wouldn't know the difference between an EA and an A+ certification. Choosing not to be subject to circular 230 by not pursuing the voluntary program seems the more likely choice that will be made by fraudsters.

That isn't to say it can't help eventually. I agree with the AICPA in that this won't help right now - but the IRS doesn't have the authority right now to require something like this. Let's assume congress eventually gives them the authority. If the voluntary system is already in place, they can have the whole system up and running before they even have the authority to require it. The CE providers, the testing centers and the tests themselves, the registration systems, etc. If congress then gives them authority to regulate preparers the IRS just changes it from voluntary to mandatory and does not have to build up from nothing.

[Roberts]

Is someone who's been filing taxes for people (was a CPA at one point), pleads guilty to not filing or paying his federal taxes for the last 5 years of about $160,000 and is sentenced to a short prison term and a fine allowed to then prepare, file and sign as preparer tax returns for clients?

Guy I know has been convicted and his sentencing has been delayed but they are expecting a 1-2 month prison term (he wants to get it over so he can be back for tax season). Can't even begin to imagine how he still has any clients but I've seen people going in and out of his home office.

[ATSMAN]

According to the IRS, they plan on changing the rules in 2016 so that unenrolled tax preparers without this IRS registration can NOT even discuss with IRS agents, customer service etc. on a tax return they prepared!

But if this law suit is not thrown out, it will be a while before they can achieve that.

[taxea]

ASPCA should be urging Congress not the IRS to be doing this. Just as we all, who believe in RTRP, should be urging Congress to pass a bill so the IRS can legally have this program.

[Uncle Sam]

ASPCA should be urging Congress not the IRS to be doing this. Just as we all, who believe in RTRP, should be urging Congress to pass a bill so the IRS can legally have this program.

Make sure to get the AKC involved in this process too - if it involves ASPCA.