The IRS Helps Americans Plan for Retirement

The IRS is interested in helping Americans save for the future and has taken time to create some guidance that will enable taxpayers to better choose a retirement plan that suits their unique needs.

In a March 21, 2012 press release, the IRS detailed four ways they are helping Americans put their savings to better use:

1. Automatic enrollment.  The Treasury and IRS have issued more information on their retirement and savings initiatives which enable 401(k) plan sponsors to include automatic contribution increases.  To help with this, the IRS provides sample automatic enrollment plan language and guidance to interested employers and other plan sponsors.  For more information, visit the IRS.gov.
2. Receive tax refunds as US Savings Bonds.  While you and your clients may have received your tax refund weeks ago, it’s good to remember that IRS has enables taxpayers to buy up to $5000 in US Series I Savings Bonds with their income tax refunds.
3. Save payments that would be received for unused vacation or similar leave.  There are some employees that can choose to receive cash payments for unused vacation, etc. when they quit or even in the duration of their employment.  These cash payments can be used as contributions to retirement plans for which the Treasury and IRS have issued guidance.  Learn more here and here at IRS.gov.
4. Roll over retirement distributions into IRAs or other plans.  The press release explains, “A key risk to lifetime savings is when an employee spends his or her lump sum payment, instead of electing to roll over the payment to an IRA or other retirement plan.”  The IRS refers to Notice 2009-68 in explaining how the rollover option works.

It’s important that you understand all the retirement options available, not only so that you can prepare for your own comfortable retirement, but so that you can help your clients do the same.

Universal Accounting Helps Tax Preparers Succeed

At Universal, we believe it’s important to prepare for the future, and we’re interested in seeing your future success as a tax preparer. Our online tax training, the Professional Tax Preparer Program, is designed to help professionals like you master tax preparation, become efficient in the completion of individual and business returns, and establish thriving home-based tax businesses.  If you would like to learn more, visit Universal for a free video today!

5 Tips in Negotiating a Win-Win Situation

If you’re a self-employed tax preparer, you’ll encounter many situations where you must negotiate a favorable outcome for your small business.  These may be large or small deals and could occur with clients, colleagues and other businesses.  In order to be a successful negotiator you must know how to achieve a win-win situation.  Selling yourself short or taking too much from the negotiating party can be damaging long-term.  Here are a few things to remember the next time you find yourself planning a negotiation:

1. Know what you want. First you must know what you want.  Many negotiations fail because one or both parties did not determine beforehand what their objectives where.  It’s difficult to hit the mark when you’re not even sure what your own target is.  Don’t be too vague (“a favorable outcome”) and don’t be too rigid (“X amount or nothing”).  Negotiation is all about modifying terms so that both parties can feel satisfied with the deal.

2. Come to the negotiation with different options. Negotiation requires flexibility.  Come to the negotiation with different options in order to illustrate your willingness to achieve a favorable outcome for both of you.  Perhaps you’ll be asked to lower your fee in order to get a larger company as a client.  Don’t lock yourself into a situation where you’re not getting paid what you’re worth, but recognize that you can agree to a lower fee in the beginning which can be increased at a predetermined time.

3. Leave room to bargain. Be sure that you’ve determined a bottom line, or what you must see happen in order to accomplish your purposes, and then aim high.  Seasoned negotiators recognize that they must aim high in order to get what they want.  Determine your bottom line and pad it.  If your initial offer is your bottom line you’ve left no bargaining room.  Ask for more than what you expect to get and realize that the party you’re negotiating with is doing the same thing.  But there’s a fine line between insulting the party by asking too much and low-balling yourself by asking too little.

4. Get to know the party you’re negotiating with. It’s important to not only know what you want but why you want it.  You’ll probably be asked to express your objectives and why they are important to you.  It’s equally important that you get the same information from the negotiating party.  You should know them and understand their motives and objectives.  When you know these things, you’ll be able to work a deal that’s favorable for them while being profitable for you.

5. Be patient. Good negotiations can require a series of meetings, phone calls, and email exchanges, so don’t feel pressured to reach an agreement after just one appointment.  And sometimes it’s necessary to take a break and evaluate what has already been presented.  Don’t feel pressured to end a negotiation too soon; often that means you’re getting the short end of the stick.  Holding firm and allowing the negotiation to carry out a bit will demonstrate just how serious you are.

Negotiations are sometimes a frightening but necessary part of business.  Don’t let the fear paralyze you.   As long as you take these steps and follow your instincts, you’ll find yourself securing more and more favorable negotiations.  Practice makes perfect and you have to start somewhere.  Happy Negotiating!

Universal’s IRS-Approved Tax Training Will Help Meet IRS Regulations

Universal Accounting recently announced its approval as an IRS Continuing Education Provider, enabling individuals desiring to become Registered Tax Return Preparers to fulfill their CE requirements through Universal’s self-study and online tax courses.

The IRS oversees the approval of all CE providers.  Because Universal’s tax training was already recognized as a sponsor of Quality Assurance Service (QAS) self-study courses, after meeting the National Association of State Boards of Accountancy’s (NASBA) rigorous standards, the Professional Tax Preparer program was easily adopted by the IRS. Universal is happy to join the ranks of IRS-approved Continuing Education Providers and is confident that their tax training will enable countless graduates to advance their careers in the finance industry.

If you would like to learn how the Professional Tax Program can enhance your career, call Universal Accounting at 1-877-833-7909.

Universal Helps Students Stay Current with Tax Code Updates

Income tax preparation is a dynamic and fast-moving field. Each year, the IRS makes a number of adjustments to the tax code, including significant alterations tax professionals must be aware of.  It can be difficult to stay current with those changes which impact tax preparers and their clientele.

Universal Accounting’s tax course, the Professional Tax Preparer (PTP) Program, consists of four volumes that cover over 95% of the tax issues a preparer will likely encounter when completing returns.  While this course does help students master the tax code, eventually some of the information becomes outdated.  Purchasing a new version of the course each year would be too expensive for most students.  But the alternative—having a set of manuals that are a year behind—is equally unthinkable.

Universal Accounting has created a reasonable solution.  We provide our students with a concise volume of tax updates to supplement the course many purchased in 2011. This year’s edition, 2012 Changes to the Federal Tax Code, will bring the 2011 Professional Tax Preparer Program current, as far as Form 1040 is concerned (corresponding with Modules I and II of the course).

We have made this volume available online or via PDF, which students can print off and keep as a hardcopy reference.  The changes are broken down by module, chapter, and part so that it aligns with the PTP course outline.  Here we also summarize the new rules that will affect student learning and, more importantly, federal income tax preparation activities in the coming year. If chapters or parts from the student version of the course do not appear in this volume, it is because no meaningful changes were made to those sections for the 2011 tax year.

It is important to note that Universal Accounting refers to the versions of its tax publications, including this one, by the year in which they are published, as do most other reputable publishers. But because the IRS only updates the tax code at the end of the year for which the changes apply, it refers to those changes by their tax year, which is therefore a year behind the calendar. Thus, the 2012 Changes to the Federal Tax Code is written in reference to TY2011, the most current year for which tax laws exist.

Universal invites its students to refer to this new resource as they complete their training and/or prepare tax forms for their clients.

If you are interested in enrolling in the Professional Tax Preparer Program, please call Universal at 1-877-833-7909 for more information.

The IRS Releases the Dirty Dozen Tax Scams

Recently the IRS released its annual list of “Dirty Dozen” tax scams in attempts to warn taxpayers of fraudulent activity that could cost them considerably if they are caught unaware.

IRS Commissioner Doug Shulman says, “Taxpayers should be careful and avoid falling into a trap with the Dirty Dozen. Scam artists will tempt people in-person, on-line and by e-mail with misleading promises about lost refunds and free money. Don’t be fooled by these scams.”

You should alert your clients to the 2012 list of Dirty Dozen tax scams which include the following:

1. Identity theft.  These scams involve thieves looking to use a legitimate taxpayer’s personal information to file a fraudulent return and receive a refund.  The IRS has an intense screening process that attempts to filter out fraudulent returns, and in 2011 they were able to prevent $1.4 billion in taxpayer refunds from going to identity thieves.  For more information visit www.IRS.gov/identitytheft.
2. Phishing.  In this scam, individuals receive unsolicited emails or are lured to fake websites in attempts to get them to disclose personal and financial information.  The IRS warned, “If you receive an unsolicited email that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), report it by sending it to phishing@irs.gov.”
3. Return preparer fraud.  While the majority of tax preparers are honest and submit accurate and legitimate returns, some will overcharge with promises of helping clients secure extreme refunds.
4. Hiding income offshore.  Some US residents try to evade taxes by hiding income in offshore accounts.  In the last few years, the IRS has taken extreme measures to root-out and pursue these individuals who, if discovered, will be required to pay exorbitant fines and face possible criminal persecution.
5. “Free Money” from the IRS & Tax Scams Involving Social Security.  Many scammers prey on low-income taxpayers with promises of free money in submitting returns that include little or no documentation.  They also lure the elderly with promises of nonexistent Social Security refunds or rebates.
6. False/Inflated Income and Expenses.  Some taxpayers falsely claim more income in efforts to secure the Earned Income Tax Credit or a greater refund.  The IRS warns, “This could result in repaying the erroneous refunds, including interests and penalties, and in some cases, even prosecution.”
7. False Form 1099 refund claims.  In this scam, taxpayers are encouraged to file Form 1099 Original Issue Discount (OID) to make a false refund claim.
8. Frivolous arguments.  These scams encourage taxpayers to make “unreasonable and outlandish claims” in order to avoid paying their taxes.
9. Falsely claiming zero wages.  In this scam Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 is used to fraudulently reduce taxable income to zero.  In this same scam taxpayers sometimes submit a false statement rebutting wages and taxes.
10. Abuse of charitable organizations and deductions.  This scam involves the intentional abuse of 501(c)(3) organizations where income and/or assets are improperly shielded from taxation.
11. Disguised Corporate Ownership.  The IRS explains, “Third parties are improperly used to request employer identification numbers and form corporations that obscure the true ownership of the business.”
12. Misuse of Trusts.  In this scam, taxpayers are urged to transfer their assets into trusts in order to avoid paying taxes.  Taxpayers are urged to consult with a tax professional before transferring money into trusts at the encouragement of someone else.

It’s important that taxpayers be aware of these predominant scams in effort to protect themselves from being taken advantage of.  If you’re a tax professional, you should take the time to alert your clients to these Dirty Dozen tax scams.

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Allen Bostrom, President and CEO of Universal Accounting, has written two books that help make businesses more profitable.  Designed specifically for small business, In the Black presents 9 practical principles that enable readers to improve their business’s profitability, or the profitability of their clients’ businesses, immediately.  Red to Black in 30 Days is a guideline for financial professionals who work with disheartened small business owners in need of a good turnaround plan.

Recently, these two books were made available in Kindle format.  Take advantage of this amazing deal!  These books, purchased at regular price, would cost you $50.  But when you download the Kindle versions—which give you immediate access to this valuable information—they only cost you $5; that’s 10 times less than retail.

If you would like to learn more about these two books, visit their corresponding websites at In the Black and Red to Black.  Or order your Kindle copies today!

January 2012 Tax News

Extended Tax Deadline

Because April 15^th is on a Sunday this year and is followed by Emancipation Day on Monday (a District of Columbia holiday), the IRS has extended the tax deadline to Tuesday, April 17^th, 2012.  They continue to encourage taxpayers to e-file their returns in order to ensure greater accuracy and quicker refund receipt.

To make the filing process more taxpayer-friendly, the IRS has added a number of improvements which include new navigational features on the official website as well as interactive videos designed to help users with certain tax issues.

IRS Commissioner Doug Shulman explains, “At the IRS, we’re working hard to make the process of filing your taxes as quick and easy as possible. Providing quality service is one of our top priorities. It not only reduces the burden on taxpayers, but also helps in filing an accurate return right from the start.”

The IRS also reminds paid tax return preparers they must have and include a Preparer Tax Identification Number (PTIN) on all returns they complete. All PTINs must be renewed for the 2011 tax year.

For more information on the extended deadline, visit the IRS website.

Innocent Spouses Relief

On January 5^th, the IRS released new proposed deadlines extending relief to innocent spouses from income tax liability.  The Notice revises threshold requirements as well as the factors used in evaluating these requests.

The press release explains, “The factors have been revised to ensure that requests for innocent spouse relief are granted under section 6015(f) when the facts and circumstances warrant and that, when appropriate, requests are granted in the initial stage of the administrative process.”

In July, 2011 the IRS made their first major change to the innocent spouse program in which the two-year time limits for requesting equitable relief were eliminated.

The IRS invites public comment on the proposed revenue procedure.  The deadline for submitting feedback is February 21, 2012.  For more information visit the IRS website.

National Taxpayer Advocate’s Annual Report

Nina Olson, National Taxpayer Advocate, released her annual report to Congress on January 11^th.  There she identified the most serious problems taxpayers face: the combination of the IRS’s expanding workload and declining resources which she claims results in “inadequate taxpayer service, erosion of taxpayer rights, and reduced tax compliance.”  Olson also expressed concern that the IRS’s use of automated systems is harming taxpayers and suggested that Congress enact a comprehensive Taxpayer Bill of Rights.

For detailed information about the report, visit http://www.irs.gov/newsroom/article/0,,id=252284,00.html.

The Universal Practice Builder Program

Now is as good a time as any to grow your clientele.

In all our years working with accountants, bookkeepers and tax preparers we’ve come to understand how to best market your services.  Our Universal Practice Builder Program will provide you with 12 marketing strategies that will enable you to secure 15 to 25 qualified leaders per month, a guarantee of $30,000 in new annualized billings in only 12 months, three months of master coaching, and access to a proven plan that will help you retain clients.  Again, you can complete this amazing program on your time and at your own pace.

When you order this program now, you will receive a second valuable program, QuickBooks Made Profitable, for free! Designed to help you attract even more clients using your QuickBooks expertise, this course will enable you to start and maintain an even more lucrative practice.

80% of small businesses use Intuit’s QuickBooks software.  Learning QuickBooks will help you keep more efficient records, enabling you to teach your clients how to use the software so that you can get the information you need which will make your job much easier.  In addition, this program will teach you how to attract more clients using your QuickBooks setup, help, and consulting services.

Take advantage of this marvelous opportunity to stay the course and thrive the current economic recession.  Call Universal at 1-877-833-7909 to order now!

Resources

–.  “IRS Kicks Off 2012 Tax Season with Deadline Extended to April 17.”  4 January 2012 IRS.gov

–.  “More Innocent Spouses Qualify for Relief Under New IRS Guidelines.” 5 January 2012 IRS.gov

–. “National Taxpayer Advocate Delivers Annual Report to Congress; Focuses on IRS Funding and Taxpayer Rights.”  11 January 2012  IRS.gov

Tax News for Businesses

In a recent newsletter intended for small businesses, the IRS shared key points informing taxpayers of specific credits and news releases that apply to the self-employed.  Consider whether or not any of the following might impact you and/or any of your small-business clients:

Work Opportunity Credit

The work opportunity credit has been expanded in order to encourage employers to hire certain unemployed veterans.  On November 21, 2011, President Obama signed the VOW to Hire Heroes Act of 2011, providing businesses and tax-exempt organizations with an expanded work opportunity tax credit when they hire unemployed veterans (after 11/21/2011 and before 1/1/2013).  For more information, visit www.IRS.gov/form8850.

Federal Unemployment Tax Credit Reduction

Employers in the 21 credit-reduction states are required to adjust the FUTA tax on their 2011 Form 940.  The adjustment must comply with the table indicating the reduction rates as dictated by the Department of Labor and found on Schedule A (Form 940–which must be attached to Form 940).  For more information, refer to Instructions for Form 940 on the IRS website.  According to the press release, “if employers pay wages that are subject to the unemployment tax laws of a credit reduction state, the employers must pay additional FUTA tax. Employers must include liabilities owed for credit reduction in calculating their fourth quarter deposit.”

The SSA/IRS Winter 2011 Report

The SSA/IRS Reporter is a quarterly online publication for employers and other organizations that deal with payroll and employee issues.  New editions are posted in March, June, September and December.  To access the December issue, visit the IRS website.

Offer in Compromise

The IRS has recently redesigned their website providing OIC guidance.  An offer in compromise allows individuals and businesses to settle a tax debt for less than the amount owed.  This site enables visitors to determine whether or not they are eligible and how to submit their OIC.  The newly designed website and an instructional video are now available.

Revisions to FBAR and Form 8300 Explained

Businesses that have already filed certain Bank Secrecy Act paper forms but need to correct an error can follow a simpler process, as outlined by the IRS.

To correct the error, file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, or TD F 90-22.1, Report of Foreign Bank and Financial Accounts.  The IRS gives detailed instructions on their website.

Secure More Clients with the Universal Practice Builder Program

It can be difficult to keep up with changing tax laws and procedures while also marketing your business.  If you’re looking for help promoting your practice more effectively in order to increase revenue, consider the Universal Practice Builder (UPB) Program.  Also called Marketing on Steroids, this course was designed by our own growth specialists who know not only how to market your specialized financial services, but how to market them effectively to qualified, prospective clients.

The UPB program provides the following:

Flexibility. You complete the course on your own time and at your own pace.  And the engaging DVDs enable you to review key concepts and instruction as necessary.

Complete education.  This comprehensive training program will give you everything you need to build a thriving practice.

A qualified professional to answer questions.  For six months you will have access to our professional coaches for personal, professional guidance via phone or email.

The Universal Practice Builder Program will equip you with all the tools you need to grow your business.  If you struggle to market your practice, call Universal at 1-877-833-7909 to register for this phenomenal program now!!

Due Diligence Checklist, Extended Filing Deadline and Payroll Tax Cut

New in 2012: Due Diligence Checklist Filing Requirement

On December 20, 2011, the IRS released regulations requiring paid tax preparers to file due diligence checklists with every return claiming the Earned Income Tax Credit (EITC).  The Paid Preparer’s Earned Income Credit Checklist, Form 8867, was previously required of tax preparers to complete and retain in their own personal records; it was intended to help them acquire the necessary eligibility information from their clients.

The IRS press release explains, “The regulations also reflect recent congressional action to increase the penalty for noncompliance with the due diligence requirement from $100 to $500.”

For more information on these final regulations, refer to the Treasury Decision 9570 published in the Federal Register.

Extended Deadline for Various Tax-Exempt Organizations

On December 16^th, 2011, the IRS announced that it had extended the January and February filing deadlines for tax-exempt organizations until March 30, 2012.  Due to portions of the IRS’s e-filing system being offline during January and February of this year, the IRS has granted the extension.  The rest of the system will be fully operational and all businesses and individuals are expected to file accurate and timely returns.

The extension applies to all those tax-exempt organizations whose normal filing deadline is either January 17^th or February 15^th of this year; this includes those organizations that had an extension deadline for these same dates.  The majority of tax-exempt organizations have a May 15^th filing deadline and will be unaffected by this extension.

For more information, refer to Notice 2012-4 posted on IRS.gov.

Payroll Tax Cut Extended into 2012

The reduced payroll tax rate effective in 2011 has been temporarily extended into 2012, benefiting nearly 160 million workers.  The cut, which reduced the Social Security tax withholding rate from 6.2 percent to 4.2 percent, will continue to be in effect through February 29^th, 2012 and will have no effect on employees’ future Social Security benefits.

Employers are expected to implement the new tax rate as soon as possible in 2012 but no later than January 31, 2012.  Any Social Security tax over-withheld in January should be compensated in an offsetting adjustment in employee pay as soon as possible and no later than March 31, 2012.  Employers and payroll companies must manage the withholding changes; employers are not required to take any action.

The press release explains, “The IRS will issue additional guidance as needed to implement the provisions of this new two-month extension, including revised employment tax forms and instructions and information for employees who may be subject to the new “recapture” provision.  For most employers, the quarterly employment tax return for the quarter ending March 31, 2012, is due April 30, 2012.”

Earning a Professional Designation is Good for Your Professional Reputation

Whether it’s enhancing your skill-set with a current employer or distinguishing yourself by building credibility with your own clients, the QS designation will stand as proof of your expertise.  To earn this QuickBooks designation you must complete the Professional Bookkeeper’s Guide to QuickBooks (PBG) and pass the final exam with a score of 90% or higher.  And just like that you receive professional certification!

Additional Benefits

In addition to the skills you acquire in completing the PBG, you will also receive the following:

• Thorough and complete training on the latest and greatest version of QuickBooks Pro
• 6 months’ worth of access to our experienced, qualified QuickBooks professional accountants and CPAs to answer your questions
• Accounting 101 Review
• 30 hours of Continuing Professional Education (CPE) in most states
• A 100% money-back guarantee
• A valuable addition to your reference library

The PBG offers the most competitive QuickBooks training on the market.  Master QuickBooks and become the premier QuickBooks consultant in your area.  Call Universal at 1-877-833-7909 and enroll in the Professional Bookkeeper’s Guide to QuickBooks today!

IRS Tax Updates

Standard Mileage Rates Remain the Same

On December 9^th, the IRS announced the 2012 optional standard mileage rates which are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car will be:

• 55.5 cents per mile for business miles driven
• 23 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.

More information on calculating mileage rates, refer to the IRS website at Rev. Proc. 2010-51.

US and Dual Citizens Living outside the States

Because some taxpayers are dual citizens of the US who sometimes fail to meet the filing deadline for income tax returns or Reports of Foreign Bank and Financial Accounts (FBARs), the IRS is helping them achieve compliance by issuing a fact sheet summarizing information about their filing requirements.

Penalties will not be imposed in all cases of noncompliance.  In fact, those taxpayers who owe no U.S. tax (e.g., due to the application of the foreign earned income exclusion or foreign tax credits) will owe no failure to file or failure to pay penalties.

This fact sheet is provided for information purposes only and covers the following topics:

1. US income tax filing requirement
2. Penalties imposed for failure to file income tax returns or to pay tax
3. Possible additional penalties that may apply in particular cases
4. FBAR filing requirement
5. How to file an FBAR
6. Possible penalties for failure to file FBAR
7. New reporting requirement for foreign financial assets

For more information, visit the IRS website.

Foreign Financial Asset Reporting

The IRS has released a new information reporting form that taxpayers will use this coming tax filing season to report specified foreign financial assets for tax year 2011.

The new form, 8938 (Statement of Specified Foreign Financial Assets), will be filed by taxpayers with specific types and amounts of foreign financial assets or foreign accounts. You must determine if your clients are subject to this new requirement because failing to comply will result in significant penalties.

This filing requirement is the result of a new effort by the IRS to improve tax compliance by U.S. taxpayers with offshore financial accounts.  Those who may be required to file Form 8938 include U.S. citizens and residents, nonresidents who elect to file a joint income tax return and certain nonresidents who live in a U.S. territory.

Form 8938 is required when the total value of specified foreign assets exceeds certain thresholds.  For more information on the new form and the specific thresholds, visit FATCA page of irs.gov.

UAC’s Training Programs Will Help You Gain That Competitive Edge

Universal Accounting Center offers the best accounting, bookkeeping and tax training available.  Consider growing your tax preparation business by offering additional services to potential clients, like accounting.

Most of your competitors don’t offer specialized small-business accounting services.  But after completing the Professional Bookkeeper (PB) program, you can!  Consider a training program that is catered to your needs and busy schedule—one that will enable you to earn a professional designation after just 60 hours of your valuable time.

When you enroll in the Professional Bookkeeper Program you receive to the following:

• Flexible training you complete on your own schedule
• Rich and engaging training DVDs you can view again and again
• Hands-on instruction and practice sets through which you gain much-needed experience
• Training in building and marketing your new practice
• 6 months of valuable follow-up support
• The opportunity to earn professional certification
• Our iron-clad risk-free guarantee

Expand your service offerings by enrolling in UAC’s valuable training programs.  Call 1-877-833-7909 to enroll today!

Resource

–.  “Information for US Citizens or Dual Citizens Residing Outside the US.” Dec. 2011 IRS.gov

–. “IRS Announces 2012 Standard Mileage Rates, Most Rates Are the Same as in July.” 9 Dec. 2011 IRS.gov

–. “IRS Releases Guidance on Foreign Financial Asset Reporting.” 14 Dec. 2011 IRS.gov

Standards for IRS Continuing Education Providers and Accrediting Organizations

On December 6^th 2011, the IRS announced the standards they will use to approve Continuing Education (CE) Providers and IRS CE Accrediting organizations.  This enables the IRS to move forward with the new CE requirements where registered tax preparers must earn 15 hours of continuing professional education (CPE) credits each year, including 2 hours of ethics, 3 hours of federal tax updates, and 10 hours of general federal tax law topics.  This in addition to the requirement that tax preparers register with the IRS, secure a PTIN and pass a competency exam.

Preparers who must take the Registered Tax Return Preparer competency exam by the end of 2013 must also complete their CE courses in 2012.  These courses must be taken by IRS-approved providers.

According to the press release, the IRS requires organizations be one of the following in order to qualify as a provider:

• An accredited educational institution,
• Recognized for continuing education purposes by the licensing body of any state or U.S. territory,
• Approved by a qualifying organization as a provider of CE on subject matters designed for registered tax return preparers, enrolled agents, and enrolled retirement plan agents (such qualifying organizations will be known as accrediting organizations), or
• Any other professional organization, society or business recognized by the IRS as a provider of CE on subject matters designed for registered tax return preparers, enrolled agents, and enrolled retirement plan agents.

In order to become an accrediting organization, the required documentation—as outlined in section 4 of Revenue Procedure 2012-12—must be submitted to the address provided.  When approved, the organizations will be publicized by the IRS.

All approved organizations must obtain an IRS CE provider number which can be secured through an online application process.  An annual fee will also be required to cover third-party vendor costs for administering the CE provider application and renewal processes.  The fee includes the cost to be included on a public listing of all approved providers and to collect course collection information from providers; this enables the IRS to identify those individuals (via PTIN) who have completed a program. Qualifying organizations must renew their status with the IRS every three years.

For more information, visit the IRS at www.irs.gov/taxpros/ce.

Universal’s IRS-Approved Tax Training Will Help Meet IRS Regulations

Universal Accounting recently announced its approval as an IRS Continuing Education Provider, enabling individuals desiring to become Registered Tax Return Preparers to fulfill their CE requirements through Universal’s self-study and online tax courses.

The IRS oversees the approval of all CE providers.  Because Universal’s tax training was already recognized as a sponsor of Quality Assurance Service (QAS) self-study courses, after meeting the National Association of State Boards of Accountancy’s (NASBA) rigorous standards, the Professional Tax Preparer program was easily adopted by the IRS. Universal is happy to join the ranks of IRS-approved Continuing Education Providers and is confident that their tax training will enable countless graduates to advance their careers in the finance industry.

If you would like to learn how the Professional Tax Program can enhance your career, call Universal Accounting at 1-877-833-7909.

Resource

–.  “IRS Announces Standards for Continuing Education Providers and Accrediting Organizations.”  6 Dec 2011  IRS.gov

General Report of the IRSAC

The Internal Revenue Service Advisory Council (IRSAC) was established in 1953 and has since served as an advising body to the IRS Commissioner.  According to a recent IRS press release, the IRSAC, “reviews existing tax policy and recommends policies regarding both existing and emerging tax administration issues.  In addition, the IRSAC suggests operational improvements, conveys the public’s perception of professional standards and best practices for tax professionals and IRS activities, offers constructive observations regarding current or proposed IRS policies, programs, and procedures, and advises the Commissioner and senior IRS executives on substantive tax administration issues.”

One way the IRSAC accomplishes this mission is through their annual report which was recently released to the public.  It’s important that tax professionals be apprised of all the key recommendations put forth by the IRSAC and all its subgroups.

In the 2011 General Report of the Internal Revenue Service Advisory Council, the IRSAC makes two key recommendations:

1. Congress must ensure that the IRS is adequately funded in order to experience continued success in service, compliance and enforcement.  Their findings conclude that taxpayers and the tax system will continue to suffer if adequate resources are not diverted to the IRS.
2. Resource allocation must ensure the proper balance among service, compliance and enforcement at the IRS.

The IRSAC is divided into four subgroups: Wage and Investment (W&I), Small Business/Self-Employed (SBSE), Large Business and International (LB&I), and Office of Professional Responsibility (OPR).  The focus of each group for this report is noted as follows:

Wage and Investment Subgroup: asked to recommend the best ways to simplify the Schedule D redesign and revise the corresponding instructions.

Small Business/Self-Employed Subgroup: recommended nine actions relating to nine issues raised in the report.

1. Empower exam managers as an alternative to SBSE fast track settlement program
2. Enhance worker classification compliance with increased publicity for the voluntary classification settlement program
3. Provide tentative independent contractor status for appropriate compliant taxpayers that provide notice to the IRS
4. Update de minimis fringe guidance
5. Revise IRS streamlined installment agreement program and related electronic payment systems including online and direct debit programs to improve collection
6. Enhance collections by taking unsecured debt into consideration
7. Revise the IRS’s penalty abatement processes and the Reasonable Cause Assistant (RCA) to provide efficient and consistent treatment for abatements
8. Adopt technology to make taxpayer examinations more efficient and less burdensome to the taxpayer
9. Use appropriate performance measures to enhance customer service and increate collections

Large Business and International Subgroup: reported on six issues which included 1. The IRS’ use of remote work, 2. ways the LB& I can gain greater commercial awareness, 3. improvement of Schedule UTP, 4. improvement of IRS’ distance learning methods, 5. expanding the use of Fast Track Settlement, and 6. the IRS’ use of academic research.

Office of Professional Responsibility: provided feedback and recommendations on five key topics: 1. exclusive authority over discipline, 2. coordination of administrative responsibility over discipline, 3. additional guidance to tax practitioners, 4. recision of changes to final regulations, and 5. suggested adoption of USPAP by OPR in judging appraiser conduct.

To read this report in full, visit the official IRS website.

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Resource

–. “2011 IRSAC Public Meeting Briefing Book.”  16 November 2011 IRS.gov