What is a Certified Tax Preparer?

[Zee]

I didn't know such a title exists? But, there is a local CFP that uses this title in their large widow sign near my home? I don't know if their an EA, or not. Are EA's allowed to call themselves Certified Tax Preparers? Anyone else?

Geesh! I did a search and see I asked the question in May 2006, but I'm not sure I got a good answer. So, let's try again... Is there a recognized Certified Tax Preparer designation, or not? I don't think so.

[WhiteOleander]

Maybe you could call them and ask them what it means. What kind of education is involved?

[SunTaxMan]

Ctp

I have not investigated lately but several years ago NSTP issued CTP (Certified Tax Preparer) and CITP (Certified Individual Tax Preparer) - CITP being limited to 1040s.

[Zee]

I have not investigated lately but several years ago NSTP issued CTP (Certified Tax Preparer) and CITP (Certified Individual Tax Preparer) - CITP being limited to 1040s.

I looked at the website of the National Society of Tax Preparers (NSTP), but must admit I've never heard of them. The website doesn't say anything about a Certification program.

[Uncle Sam]

Ctp

That must be a credential that a "professional" membership organization gives to a person who has met certain requirements.
It has absolutely NO official government recognition - either IRS, or State Governments.
Every accountant organization dreams up its own credential program to give its members status.
The only officially recognized titles by tax authorities and other government entities are CPA, EA, PA (Public Accountant), and variation of PA titles.

[Zee]

That must be a credential that a "professional" membership organization gives to a person who has met certain requirements.
It has absolutely NO official government recognition - either IRS, or State Governments.
Every accountant organization dreams up its own credential program to give its members status.
The only officially recognized titles by tax authorities and other government entities are CPA, EA, PA (Public Accountant), and variation of PA titles.

This brings up another question. Isn't this awfully confusing for the consumer? Why doesn't the IRS prohibit advertising of such certifications?

[Gene V]

LTC license

In Oregon, in order to have your own tax business, you have to be license as a LTC (License Tax Consultant) or be a
CPA. In order to get your LTC license, you have to work for another LTC or CPA for two years (as a LTP license tax preparer), and then take the Test for the LTC license. Even being an EA, doesn’t exempt you from taking the test and getting the LTC license. I got my EA license before I got my LTC license, I only had to take the Oregon part of the test, I’m not sure how they do the process now. Therefore, lots of the preparer have LTC after their name or LTP.

[Uncle Sam]

Ctp

The credentialing and licensing of any occupation is a State issue, not a Federal one.
The only title I'm aware of that has uniform acceptance is the EA license (both Enrolled Agent and Enrolled Actuary), because the exam is administered BY the IRS.
Every State has different Accountancy laws that govern the rules of practice, ethics etc in that State.

[bullroot]

See IRS Publication 6744.

[myerstaxes]

If You are in

California, many preparers that are registered with the State erroneously use the term "Certified" for their CRTP designation which means (California Tax Education Council)CTEC Registered Tax Preparers Registered Tax Preparer and NOT "Certified"

[OtisMozzetti]

OR and CA state laws

It is true that Oregon and California have laws concerning who may prepare federal or state tax returns in their states. A federally-authorized Circular 230 practitioner, for example an EA, does not have to get registered with CTEC in order to prepare returns in California.

I would ask the question as to who can, and who cannot, prepare returns for each of those two states if one does not reside in or conduct business in Oregon or in California? For example, can an EA who is located in Kansas City prepare part-year Oregon returns for clients who have recently moved there from Oregon?

[Zee]

The credentialing and licensing of any occupation is a State issue, not a Federal one.
The only title I'm aware of that has uniform acceptance is the EA license (both Enrolled Agent and Enrolled Actuary), because the exam is administered BY the IRS.
Every State has different Accountancy laws that govern the rules of practice, ethics etc in that State.

Of course, you're correct. But, Circular 230 seems to cover rules of practice, doesn't it? Practicing Accountancy is very different than simply preparing taxes. So, why aren't states more diligent in prohibiting the use of misleading certification claims in advertising?

[Zee]

See IRS Publication 6744.

Yes, I suspect many of those advertising themselves as "certified tax preparers" are indeed VITA volunteers that must be certified by the IRS to perform volunteer tax services after passing a series of tests.

According to this website(which seems to focus on CA):

http://www.vita-volunteers.org/vita_training.htm

The IRS training for VITA volunteers does not qualify a volunteer to give tax advice or complete tax returns for pay; different requirements apply for preparing tax returns for pay. In addition, VITA volunteers prepare simple return.

I don't think, however, that this certification is to be advertised by a paid preparer, is it?

[Uncle Sam]

Of course, you're correct. But, Circular 230 seems to cover rules of practice, doesn't it? Practicing Accountancy is very different than simply preparing taxes. So, why aren't states more diligent in prohibiting the use of misleading certification claims in advertising?

Because the Accountancy laws and regulations for each State were passed at different times during the past century.
The Public Accountant title and license didn't come into existence in many states until the 1930s and 1940s.
When the accountancy laws were developed, the EA status wasn't as publicized as it is now, and the laws were written to comply with the CPA licensure - perhaps never envisioning that various credentialed titles would ever be created.

[myerstaxes]

Otis

To the best of my knowledge, all States recognize Circular 230 preparers eg EA, CPA, Attorney...I prepare returns for all States for clients that have resided outside of CA...