About 1 out of every 8 of the nation's professional tax return preparers failed to comply with new regulations for 2011, according to information released by the IRS.
It is essential to have a PTIN. The IRS is really cracking down on people who prepare taxes for money without being properly registered. The change has occurred over the last three years, starting in 2009. The certification of tax professionals is a regulatory procedure to make sure people are not taking advantage of tax preparation and the IRS submission process. Realistically, hiding a lack of certification has been possible in the past without following IRS filing requirements.
In the fall of 2010, the new PTIN registration started. It is an online system to make sure that tax professionals are certified.
Basically, anyone who receives payment for tax filing must meet certain requirements. These include an exam and necessary continuing education.
Like anything, there are exceptions to the rule. Lawyers and CPA’s do not have to meet the minimum requirements for certification. According to the IRS, the profession meets the necessary requirement for approval.
This seems practical, but it does raise some questions as well. For lawyers, they can take continuing education on many aspects excluding tax laws. Also, the bar examination for lawyers includes a wide range of legal issues, not just taxes.
Things have gotten a little trickier than that as well. The IRS announced that, “certain tax preparers who will not be signing returns would also be exempt from the exam and the continuing education requirements.”
This incentive basically gives larger companies an outlet for their employees. This includes tax preparation companies like H&R Block, Jackson-Hewitt, Liberty Tax, and other franchise type tax preparers.
This is what makes TaxSlayer Pro different. We understand that if you are a certified tax preparer, you should have access to a reliable program that offers unlimited e-file for your clients. You may think it is hard to compete with the larger franchises, but that is where the Pro support is so crucial. Feel free to contact us at anytime for more information.
There is a new extension for those that drive trucks for a living. The IRS has extended the federal highway tax return. For those truckers and other owners of heavy highway vehicles, their tax federal tax returns will be due Nov 30, 2011 instead of Aug 31.
The highway use tax applies to that weigh 55,000 pounds or more. Vans, pick-up trucks, and panel trucks usually don’t count because they do not reach the minimum weight.
The extension is used to alleviate any complications with possible multiple filings. This could occur if Congress because the highway use tax is supposed to expire on Sep 20, 2011. The extension will be helpful if Congress reinstates or modifies the tax after that date.
The Federal Registrar recently proposed regulations that apply to Form 2290, Heavy Highway Vehicle Use Tax Return. The tax period begins July 1, 2011, and it applies to all vehicles used during July to September. According to this, truckers should not file returns or make payments before Nov 1.
In order to make the process easier for those that applying for state vehicle registration, states must accept the Schedule 1 of Form 2290 issued by the IRS ending on June 30, 2011. Usually, states normally accept a stamped Schedule 1 as a substitute proof of payment only through Sept 30.
If you are registering a new or used vehicle between July and November, new regulations require a state to register the vehicle if the owner purchased the vehicle in the past 150 days.
Remember, the maximum tax of up to $550 per vehicle is calculated by the weight of the vehicle. Other variables include logging or agricultural vehicles and those with minimum road use.
The IRS received approximately 650,000 Form 2290 that totaled $886 million dollars. Trucking is big business, and the drivers are great potential clients. TaxSlayer Pro offers guidance in how to deal with all customers. If you live in a urban area, or near a prominent interstate, there are bound to be transportation by truckers everyday. Take advantage of these client opportunities by using a an efficient tax preparation program with unlimited e-filing and great support.
As a professional tax preparer, you want to provide the best possible service to your clients. In many cases, it is easy to take care of your clients with reliable tax preparation software with unlimited e-filing and great support. Even if you don’t have TaxSlayer Pro yet, we still want you to be aware of recent changes in IRS legislation.
When taking care of clients and gaining new business, it is important to consider the customer’s point of view. They are looking for the most affordable and efficient way to file their taxes. In most cases, they take their forms to a professional and expect their refund in the allotted time frame.
Nevertheless, some clients are aware of the Tax Advocate Service within the IRS. The service can be very helpful for those seeking assistance, but possible budget cuts may affect the service tremendously.
“The IRS has made significant progress on important fronts over the last year, including the implementation of return-preparer regulation, the transition to the Customer Account Data Engine 2 (CADE 2) to improve returns processing, and the streamlined processing of offers-in-compromise,” Olson said in releasing the report. “At the same time, the IRS faces significant challenges in the year ahead, particularly if its budget is reduced.”
This is actually an opportunity for seasoned tax professionals. Many taxpayers try to contact the IRS directly for help with tax preparation. Due to the millions of people required to pay taxes, the challenge has become bigger and bigger each year.
According to the IRS Newsroom, “The IRS’s ability to respond to taxpayer phone calls and correspondence has declined. Comparing FY 2010 with FY 2004, the percentage of phone calls the IRS answered from taxpayers seeking to reach a telephone assistor declined from 87 percent to 74 percent, and the percentage of unanswered correspondence classified as “overage” at year’s end increased by 135 percent.”
Given all the IRS’s overwhelming responsibility, the Tax Advocate Service has suffered. Therefore, tax professionals must be as aware as possible in providing correct information to clients. TaxSlayer Pro is extremely knowledgeable, and they offer great support for the very complex issues regarding tax preparation. Take advantage of our company’s great product and support and contact us soon.
Keep updated as a tax professional with IRS webinars. Since January of 2010, the IRS has been conducting IRS Live. This is a panel discussion with industry professionals and IRS experts. The program intends to further educate tax professionals on the most recent and intricate tax issues that affect them and their clients.
During a live webinar, you can submit questions by email while the discussion is going on. You can ask specific questions regarding your current tax dilemmas with forms or clients. You don’t want to disclose any personal information of course.
The best part about IRS Live is you can earn Continuing Professional Education credit. The credit is based on the following criteria:
• Enrolled agents earn one CPE credit for at least 50 minutes of attendance from the start of the webinar.
• You can receive credit if the webinar meets state CPE or organization requirements.
• In order to get the CPE credit, you must use the same email address to register and log in to attend the webinar. This guarantees a Certificate of Completion. So if you want to do it as a group, each person must register separately.
• The Certificate of Completion will come in about a week by email.
• You can receive the CPE credit by watching archived webinars if you don’t need a Certificate of Completion.
IRS Live comes on at 2 p.m. Eastern Time every two months. You can even download Microsoft Outlook reminders for upcoming events.
Archived seminars are listed below and here.
• The Examination Process for Employment Tax Returns (June, 2011)
• Requirements for Federal Tax Return Preparers (March, 2011)
• Getting Ready for Filing Season 2011 - Individuals and Businesses (January 2011)
• Making a Noticeable Difference (November, 2010)
• Collecting Employer Taxes on Tips (September, 2010)
• New Requirements for Tax Return Preparers - Learn the Who, What When, Where and How (June, 2010)
• Tips on Tips Reporting, Filing Form 8027, Employer’s Annual Income Tax Return of Tip Income and Allocated Tips (March, 2010)
• Getting Ready for Filing Season - Individuals and Businesses (January, 2010)
As always, keep up to date with the blog from Taxslayer Pro. We understand that CPEs are very important, and there are many avenues to obtain them. Also, it’s key to have affordable tax software with unlimited e-filing if you want to be a successful professional tax preparer. Staying educated with the most up to date tax preparation software will make you desirable in the tax preparation market.