News Item for Preparers I

[wv112]

I just read this in the Kiplinger Tax News Letter.


Bush wants to scrap tougher standards for return preparers
that took effect Jan. 1. Those standards require positions taken
on returns to have a better than 50% chance of being upheld by the IRS.
Otherwise, the preparer must disclose that position to the Service
to avoid penalties. Under Bush's proposal, the standard for preparers
in cases that don't involve tax shelters would be the same as the one
for taxpayers. Preparers would need to have substantial authority...
about a 40% chance the position is valid. Congress will go along.

[Fuzzy Faced Leader]

I think that's good news, but knowing the IRS, it will require a completely revised Circular 230, including about 50 pages of information necessary to define what "about 40%" means. Of course, this will be done after we get the rebates, and probably not retroactive, so I'm looking at a September timeframe. Like adding more mud to the swamp.