Tax Preparer Registration - 4 Facts You Need to Know
- Author Deysi Alcala
- Published August 22, 2010
- Word count 587
As time ticks closer to the beginning of new tax preparer certification rules, many in the tax industry say it's a bad move for everyone. Critics say the new tax preparer regulations will drive some companies out of business, while also making it tougher for everyday tax-paying citizens.
On September 1, 2010, the tax preparer registration process will begin, meaning that each tax preparer will have to be approved by the IRS. By the spring of 2011, each tax preparer will have to take competency tests and enroll in continuing education classes. Once the tax preparer certification process is complete, each tax preparer must follow ethical rules created by the Department of Treasury.
As would be expected, there will be tax preparer registration fees and other costs associated with this tax preparer certification process. It's those costs that could be very damaging to the tax industry and taxpayers. Consider the following:
- Tax preparer registration is only good for three years, and the fee to register ranges from $75-$300 per tax preparer. That means tax preparation companies will have to spend thousands of dollars just to get all of their employees registered. Then, there's the cost of the competency tests and continuing education classes. Think about how those costs could affect a small, local business. If they cannot afford to go through the tax preparer certification process, they will have no choice but to go out of business.
Now, think about how those added costs could affect regular citizens. Companies likely will not absorb all of the costs of tax preparer certification; they'll simply pass the costs onto consumers, making it more expensive for you to get tax help.
Or, if small tax companies start to go out of business, it will be harder for taxpayers to get tax help. It's simple supply and demand; if there are fewer tax preparers, there are fewer people to help you prepare your taxes. Would you be able to do your taxes without any help?
-
Tax preparer registration begins in September, and everyone must be registered by the 2011 tax season. That means the IRS only has a few months to certify more than a million tax preparers. What if paperwork gets lost in the bureaucratic shuffle? A tax preparer who registered on time may have to miss a season's worth of business if his paperwork is not reviewed in time. For most businesses, missing out on an entire season would ruin them.
-
The IRS has not released much information about what happens if people do not prepare with the new tax preparer regulations. According to the IRS, they will be on the lookout for people who are not complying with tax preparer certification rules, but they have not said what the punishments will be. This has left many tax preparers afraid of the unknown.
The good news for tax preparers is that several organizations like the National Board of Tax Practitioners are offering assistance. The NBTP is offering a free workshop titled "How to Survive IRS Tax Preparer Regulations" these workshops are being offered in select cities throughout the nation. Over 45 workshops presentations will be offered, in both English and Spanish. Attendees will receive detailed information on how to comply with the new IRS regulations. The workshop will also provide valuable industry details regarding client retention and the future of bank products known as refund anticipation loans and electronic refund transfers.
For more information you can visit their website are http://www.nbtponline.com or the Internal Revenue Service at http://www.irs.gov
Deysi Alcala is the administrator at the National Tax Academy a leading provider of online tax courses designed to ready students for the exciting and growing field of tax preparation. For more information about our online tax courses , visit www.NationalTaxAcademy.com
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- 10 essential tax-saving strategies for landlords: Maximise your rental income
- A Comprehensive Guide to Navigating the Process and the Role of Customs Brokers in the UK
- Outsourced Accounting Services for UK Businesses: A Cost-Effective Solution for Financial Management
- Top 8 Self Assessment tax return software
- How to Close a Limited Company in the UK
- Maximizing Your Finances: Unleashing the Power of CPA Services
- VAT penalties – New rules
- TAX-FREE STRATEGIES IN AN UNCERTAIN ECONOMY
- 2022 Energy crisis and failure to connect Reality.
- When Are Corporate and Personal Taxes Due in Canada in 2021?
- You Would Never Have Thought That Having Accounting Internship Could Be So Beneficial
- ACTIVATION OF UAN
- Focal motivations behind getting a Tax direct for Small Business Firms
- Avoiding the flood — tax issues with water rights in agribusiness
- Social security benefits for a family (COVID-19)
- How to use QuickBooks Component Repair Tool?
- Do you want to reduce your taxes for next year?
- Will you be responsible with your tax refund?
- Getting started with QuickBooks Enhanced Payroll in Brief
- Are DSTs Right For Your 1031 Exchange
- Tax Return Makeovers By Kenya Woodard
- Why have all crypto tax attempts failed?
- Are You a Corporation? Know Why Consulting a Tax Accountant Is Vital
- Share capital or share premium for your Dutch company?
- Everything investors should know about 1031 sponsors
- Why is the income tax so high in UK?
- Should I do my own tax return?
- Get More Money Back on Your Tax Return with help from the Tax Cuts and Jobs Act
- Don’t Fall Victim to these 3 Tax Scams in 2018
- Find Out If 72(T) Penalty Free Income Is a Solution for You