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.