On September 6th, the IRS released specifications regarding the new competency test required for individuals desiring to become Registered Tax Return Preparers.
The test will be available this fall, and the specifications, which can be found in PDF format on the IRS website, indicate which topics will be covered. Those who have obtained a provisional tax preparer identification number (PTIN) will have until December 31, 2013 to pass the exam, although they can also take it as soon as it becomes available.
The test, which will be administered by Prometric, Inc., will have about 120 multiple-choice and true-false weighted questions. Individuals will receive a pass or fail score, and those who fail the exam will also be given diagnostic feedback. The IRS expects to provide individuals with a test limit somewhere between two to three hours. The exam can be taken at one of Prometric’s 260 nationwide facilities.
The IRS has recommended the following study materials:
Some reference materials will be available to individuals when they are taking the test, and Prometric will provide individuals with Publication 17, Form 1040 and Form 1040 instructions as well.
The fee for the test has not been finalized but is expected to run somewhere between $100 and $125, which is separate from the PTIN user fee. The IRS has not yet set a limit on the times the test can be retaken; however, the fee is required each time. The exam only needs be passed once.
Certain individuals are not required to take the exam due to current professional requirements considered more rigorous than the new IRS requirements: Attorneys, Certified Public Accountants and Enrolled Agents (EAs).
So far about 730,000 return preparers have registered and received PTINs; more than 60% do not have professional credentials. The IRS will provide those required to take the exam with more details. When the test becomes available, individuals with online accounts can use them to select a test time and a Prometric testing site.
For more information, visit IRS.gov.
Universal Accounting’s Tax Training
Our income tax training, the Professional Tax Preparer course, will help you comply with the new tax preparer regulations established by the IRS. Not only could you earn the Professional Tax Preparer Designation, but you could also learn everything you need to know to pass the IRS Competency Exam and receive up to 60 CPE credits, depending on the number of modules you complete.
Acquire the expertise necessary to become a Professional Tax Preparer. UAC’s Professional Tax Preparer (PTP) program will not only give you hands-on training in completing full individual (1040) and business returns (1065, 1120, 1120S), but it will also provide you with the following:
- 20 hours of valuable video instruction
- 2 instructional manuals
- Step-by-step instruction in becoming a sole practitioner
- One year of follow-up support from expert tax preparers
- The opportunity to earn valuable professional certification
- Our iron-clad, risk-free guarantee
Be prepared for the changes impacting paid tax preparers. Improve your competitive advantage while securing your professional standing in the tax industry. Register for our online tax course by calling 1-877-833-7909 and build your home-based tax business.
Please post your comments and thoughts regarding the new IRS regulations.
Resource
–. “IRS Releases Specifications for Registered Tax Return Preparer Test.” 6 Sept 2011 IRS.gov
The IRS Requests Your Submission of Tax Issues for the IIR Program
In a recent press release, the IRS asked that business taxpayers, associations, tax preparers and similarly interested parties submit tax issues to the Industry Issue Resolution (IIR) Program which attempts to resolve problems, controversies, disputes or unnecessary burdens common to many taxpayers. The IRS explains, “In past years, issues have been submitted by associations and others representing both small and large business taxpayers, resulting in tax guidance that has affected thousands of taxpayers.”
The IRS selects issues they wish to focus on and creates a team of IRS and Treasury personnel to research the issues and gather pertinent information from taxpayers or other individuals similarly impacted by those issues. They then attempt to recommend potential resolutions, thus benefiting both taxpayers and the IRS.
To review issue criteria, refer to Revenue Procedure 2003-36. The IRS receives submissions anytime throughout the year and reviews them semi-annually. To see the results of previous resolutions, visit IRS.gov and review guidance published in April of this year.
Interest Rates Decline Once Again
In a press release published on August 18, the IRS declared the following changes in interest rates for the fourth quarter of 2011:
- three (3) percent for overpayments [two (2) percent in the case of a corporation];
- three (3) percent for underpayments;
- five (5) percent for large corporate underpayments; and
- zero and one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.
The interest rate is determined quarterly, per the Internal Revenue Code and took effect August 1, 2011.
For more information, visit IRS.gov.
Universal Accounting Will Help You Master Tax Preparation
If you find your skills and knowledge regarding tax laws and IRS regulations lacking, Universal’s tax training will help you acquire the expertise you need. UA’s Professional Tax Preparer (PTP) program will not only help you master tax preparation, but it will also enable you to hone your skills and comply with the new IRS tax preparer regulations. Not only could you earn a professional designation, but you could also learn everything you need to know to pass the IRS Competency Exam and receive up to 60 CPE credits, depending on the number of modules you complete. The four models include the following:
1. Establishing the Tax Foundation. Learn the entire process for determining income and adjustments to income, which will factor into the Adjusted Gross Income. In fact, you’ll cover all the information necessary to prepare Page One of Form 1040.
2. Becoming the 1040 Expert. This module deals with background information and forms that go into the 1040, Page 2. We also discuss all the adjustments that can be made to gross income, including credits that are allowed and different types of deductions and exemptions that can be taken against that adjust gross income number.
3. Profitable Business Returns. Here we introduce you to the world of business organizations and their tax concerns. This module is a practical companion to Module 2, as it give you experience in completing each of the schedules and forms common to business organizations.
4. Building Your Successful Tax Practice. Get a head start in creating and running your own tax preparation service. You will find yourself light years ahead of the competition as you put these strategies into play.
UAC’s PTP program will not only give you hands-on training in completing full individual (1040) and business returns (1065, 1120, 1120S), but it will also provide you with step-by-step instruction in becoming a sole practitioner, one year of follow-up support from expert tax preparers and our iron-clad, risk-free guarantee.
Hone your skills, earn a designation, and comply with IRS regulations. Three birds, one stone. Call Universal Accounting at 1-877-833-7909 to enroll today.
We want to know what you think! Please post your feedback.
Resource
–. “IRS Statement: IRS Seeks New Issues for the Industry Issue Resolution Program.” 17 August 2011 IRS.gov
–. “Interest Rates Decrease for the Fourth Quarter of 2011.” 18 August 2011 IRS.gov
As the economy continues to flail, many taxpayers find themselves struggling financially. Countless individuals are grappling with job loss, debt forgiveness and the necessity of drawing from a retirement fund, all of which can have various tax implications.
In an effort to help taxpayers understand how a new financial status will affect tax liability, the IRS has created a site of FAQs entitled “The ‘What Ifs’ of an Economic Downturn.’ The information provided can help you work with clients who have encountered new and unexpected financial difficulties this year.
Some of the more common questions include the following:
What if I lose my job?
“The loss of a job may create new tax issues. Severance pay and unemployment compensation are taxable. Payments for any accumulated vacation or sick time also are taxable. You should ensure that enough taxes are withheld from these payments or make estimated tax payments to avoid a big bill at tax time. Public assistance and food stamps are not taxable. The IRS has updated a helpful publication which lists a number of job-loss related tax issues. For more information, see Publication 4128, Tax Impact of Job Loss and the Tax Center to Assist Unemployed Taxpayers.”
What if my income declines?
“There are many tax credits that are subject to income limitations. If you had a reduction in income this year you may be eligible for some credits or deductions. For example, the Earned Income Tax Credit is available for working families and individuals. Eligibility is determined by income and family size. You must file an income tax return in order to claim EITC. See 1040 Central for more information on EITC, other tax credits and tax law changes.”
What if I withdraw money from my IRA?
“Generally, early withdrawal from an Individual Retirement Account (IRA) prior to age 59½ is subject to being included in gross income plus a 10 percent additional tax penalty. There are exceptions to the 10 percent penalty, such as using IRA funds to pay your medical insurance premium after a job loss. For more information, see Publication 590, Individual Retirement Accounts.”
What if I lose my home through foreclosure?
“Under the Mortgage Forgiveness Debt Relief Act of 2007, taxpayers generally can exclude income from the discharge of debt on their principal residence or mortgage restructuring. This exception does not apply to second homes or vacation homes. In some cases, you may be able to file an amended tax return for previous tax years. For more information, see The Mortgage Forgiveness Debt Relief Act and Debt Cancellation.”
What if I can’t pay my taxes?
“Don’t panic. If you cannot pay the full amount of taxes you owe, you should still file your return by the deadline and pay as much as you can to avoid penalties and interest. You also should contact the IRS to discuss your payment options at 1-800-829-1040. The agency may be able to provide some relief such as a short-term extension to pay, an installment agreement or an offer in compromise. In some cases, the agency may be able to waive penalties. However, the agency is unable to waive interest charges which accrue on unpaid tax bills. For more information, see The Collection Process and Tax Payment Options. The Form 1040 Instructions also provide guidance on filing and paying your taxes.”
Knowledge is power. When your clients understand the tax implications of their current circumstances, they avoid acting out of fear and making unwise financial choices. Help them get a handle on their current situation by sharing this useful information.
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!
We welcome your feedback on this article! Please post your comments below.
Resource
–. “The ‘What Ifs’ of an Economic Downturn.” 20 May 2011 www.irs.gov
e-File Requirement for Many Paid Tax Preparers
Beginning the first day of this year, many paid tax preparers will be required to electronically file returns for individuals, trusts, and estates. This new law will be phased in over 2011 and 2012 and applies in the following scenarios:
- January 1, 2011— for preparers who anticipate filing 100 or more Forms 1040, 1040A, 1040EZ and 1041 during the year; or
- January 1, 2012— for preparers who anticipate filing 11 or more 1040, 1040A, 1040EZ and 1041 during the year.
This new law requires firms to anticipate the number of returns they will reasonably file in the upcoming two years. If they assume that number to be 100 or more in 2011 and/or 2012, every member of the firm must electronically file all the returns they prepare. As noted in the IRS press release, “This is true even if a member prepares and files fewer than the threshold on an individual basis.” If clients so desire, they can file paper returns independently.
In order to file electronically using IRS e-file, you must become an authorized e-file provider by doing the following:
- Creating an IRS e-Services Account
- Submitting an application
- Passing a Suitability Check
Some tax preparers may be eligible for a hardship waiver from the new e-file requirement.
For more information, visit the official IRS website.
2011 Tax Filing Season: IRS Letter and Visits to Tax Preparers
In December we reported that the IRS had distributed more than 10,000 letters to paid tax preparers reminding them of the importance of filling accurate returns for their clients. Included in the letter was an enclosure that detailed the responsibilities and consequences in filing inaccurate returns.
These letters were sent to a selection of preparers who submit a considerable number of returns using Schedules A, C or E. According to the IRS press release, “The selection of preparers who received the letters is based on filters used to identify those preparers that may need assistance in meeting their required responsibilities.”
The press release also noted that throughout the 2011 filing season, IRS representatives will visit about 2,500 tax return preparers who received these letters. In that setting, their responsibilities as a return preparer will be discussed; they will also verify their compliance with existing return preparer requirements.
This effort demonstrates the IRS’s continued commitment to the improved accuracy of filed returns and heightened awareness of preparer accountability.
Universal Helps Tax Preparers be in Compliance
Consider Universal your source in preparing for the new IRS mandatory testing and continued tax education requirements.
Our online tax course, the Professional Tax Preparer program, is designed to help and includes the following:
- Informative video instruction
- Full 1040 training
- Full business return (1065, 1120, 1120S) training
- 6 months of follow-up support from expert tax preparers
Many programs will lecture you on tax law and preparation practices, but Universal’s program is much more effective because it provides you with the hands-on practice that will perfect your skills. Theory is taught as guiding principles, but the focus is on actually doing taxes to gain proficiency.
Ensure that you’re in compliance with the new IRS tax preparer regulations. Improve your competitive advantage and secure your professional standing in the tax industry while building your home-based tax business. Call Universal at 1-877-833-7909 today and enroll in the Professional Tax Preparer Program.
Please leave us with your feedback and comments.
Resources
–. “IRS Letters and Visits to Return Preparers – Filing Season 2011.” 7 June 2011 www.irs.gov
–. “Many Tax Return Preparers Must Use IRS e-file Beginning in 2011.” 29 June 2011 www.irs.gov
Form 8939
On August 5th, the IRS released guidelines for treating estates of taxpayers who died in 2010. The information is designed to help executors opt out of estate tax in order to apply carryover rules. These individuals are to use Form 8939 which is due on November 15, 2010.
The recent press release declares that executors must file Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, in order to avoid the estate tax so that the new carryover basis rules apply. Form 8939 and all corresponding instructions will be released early this fall.
According to the IRS press release, “Under the Economic Growth and Tax Relief Reconciliation Act of 2001, the estate tax was repealed for persons who died in 2010. However, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reinstated the estate tax for persons who died in 2010. This recent law allows executors of the estates of decedents who died in 2010 to opt out of the estate tax, and instead elect to be governed by the repealed carry-over basis provisions of the 2001 Act. This choice is to be made by filing Form 8939.”
Offshore Account Reporting
The 2011 Offshore Voluntary Disclosure Initiative (OVDI), designed to help taxpayers hiding income in offshore accounts make their taxes current with the IRS, will expire on August 31, 2011. Taxpayers coming forward voluntarily will experience a less stringent penalty than those who wait for the IRS to discover their undisclosed accounts and income. With new reporting requirements being initiated over the next few years, taxpayers will find it increasingly more difficult to hide income in offshore accounts.
IRS Commissioner Doug Shulman explained, “The time has come to get back into compliance with the U.S. tax system, because the risks of hiding money offshore keeps going up. Our goal is to get people back into the system. The second voluntary initiative gives people a fair way to resolve their tax problems.”
Originally announced on February 8th, the 2011 OVDI Offshore Disclosure Program (OVDP) is similar to the one initiated in 2009, offering benefits that encourage taxpayers to disclose their offshore accounts and incomes rather than face higher penalties and possible criminal charges. In the 2011 initiative, taxpayers will have to pay a 25% penalty on the amount hidden in foreign accounts in the year with “the highest aggregate account balance covering the 2003 to 2010 time period.” Penalties may be lower for eligible taxpayers.
Those who choose to comply must also pay back-taxes and interest for up to eight years and well as other possible penalties. In order to be eligible for OVDI, original and amended returns must be filed by August 31, 2011.
For more information, refer to a previous post on this site, or visit IRS.gov.
Universal Accounting’s Tax Training
If you would like to become eligible to prepare taxes under the new regulations established by the IRS, consider enrolling in Universal’s online tax training. Not only could you earn the Professional Tax Preparer Designation, but you could also learn everything you need to know to pass the IRS Competency Exam and receive up to 60 CPE credits, depending on the number of modules you complete.
Be prepared for recent changes that are impacting all paid tax preparers. Call UAC at 1-877-833-7909 to enroll our online tax training today and improve your competitive advantage and secure your professional standing in the tax industry while building a strong home-based tax business.
We welcome your feedback and comments. Please post!
On July 12th, the IRS announced a recent discovery that approximately 100,000 tax preparers submitted returns in 2011 while failing to comply with new requirements. The oversight program, designed to regulate preparer conduct and monitor the tax return preparation industry, is sending letters to all noncompliant tax preparers.
Last year the IRS instituted new regulations requiring paid tax preparers to obtain Preparer Tax Identification Numbers (PTIN) which were to be included, along with their signatures, on each return they prepared.
IRS Commissioner Doug Shulman explains, “The vast majority of federal tax return preparers complied with the rules. Obviously, some preparers did not get the word, so these letters provide additional information so they can register as soon as possible. We owe it to the compliant tax preparers to make sure that everyone is on a level playing field.”
The IRS asks taxpayers to ensure that their tax preparers are in compliance and can complete returns with a valid PTIN. The IRS suspects that some “ghost preparers” are assisting taxpayers with their returns while refusing to sign the forms and provide PTINs. Later this year the IRS will be sending letters to those taxpayers as well, suggesting they file complaints on noncompliant paid tax preparers.
The IRS reports that since instituting the new requirements, approximately 712, 000 preparers have registered and obtained their PTINs. Preparers who are not CPAs (Certified Public Accountants) or EAs (Enrolled Agents), must also pass a competency exam and suitability check and complete 15 hours of continuing education credits each year.
In a recent press release, the IRS explains, “Compliance is a central part of the new tax return preparer initiative and the letters are one step in an ongoing compliance effort to ensure tax return preparers are following the new regulations. The IRS also is working to identify tax return preparers who make repeated errors and IRS personnel have had face-to-face meetings with thousands of these tax return preparers over the past two years.”
We welcome your comments on new IRS regulations and what that means to the tax preparer industry.
Increase Your Options and Your Earning Potential
If you haven’t yet secured your PTIN in compliance with new IRS regulations on paid tax preparers, now is the time. Also consider Universal your source in preparing for mandatory testing and continued tax education these regulations also require.
Our online income tax training, the Professional Tax Preparer program, is designed to help and includes the following:
- Informative video instruction
- Full 1040 training
- Full business return (1065, 1120, 1120S) training
- 6 months of follow-up support from expert tax preparers
Many programs will lecture you on tax law and preparation practices, but Universal’s program is much more effective because it provides you with the hands-on practice that will perfect your skills. Theory is taught as guiding principles, but the focus is on actually doing taxes to gain proficiency.
Ensure that you’re in compliance with the new IRS tax preparer regulations. Improve your competitive advantage and secure your professional standing in the tax industry while building a solid home-based tax business. Call Universal at 1-877-833-7909 today and enroll in the Professional Tax Preparer Program.
It’s that time of year again when the National Taxpayer Advocate’s mid-year report is submitted to Congress. This year Nina Olson, current United States Taxpayer Advocate and head of the National Taxpayer Advocate Office (TAS), addressed her concerns regarding IRS lien filing practices as well as the affect of IRS budget cuts on taxpayer service and compliance.
IRS Collection Practices
A concern noted in previous reports, Olson reiterates a need to address problems in the IRS’s lien filing practices. While recently announcing changes in their collection policy, particularly making lien withdrawals available to a wider range of taxpayers, Olson still finds the IRS’s practice of automatically filing tax liens based on a dollar threshold concerning. She suggests such decisions only be made following an analysis of these taxpayers’ financial situations. She explains that this approach “should balance the need to protect the government’s interest in the taxpayer’s assets with a corresponding concern for the financial harm the lien will create for that taxpayer.”
Impact of Budget Cuts on Taxpayer Service and Compliance
Recent changes in tax benefits, including the Economic Stimulus Payments, First-Time Homebuyer Credit, and Making Work Pay, have proven more difficult to claim than anticipated, generating a host of taxpayer inquiries that often go unanswered. The IRS’s ability to satisfactorily respond to these questions has significantly declined. Compared to fiscal year 2004, the percentage of unanswered correspondence increased by 135 percent in 2010.
Olson expressed apprehension over budget cuts that will negatively impact an already straining taxpayer service. She explains, “In recent years, the IRS has been given more and more tasks, but it is not receiving the resources it needs to fulfill these tasks without cutting corners. And when the IRS cuts corners, taxpayers can be harmed and revenue collection may suffer.”
As in the past, the National Taxpayer Advocate suggests the Internal Revenue Service be exempt from budget caps or reductions, noting that the IRS has, on average, been able to collect $194 dollars for each dollar it spends.
The report states, “Despite differing views about the appropriate level of taxation, there is widespread agreement that taxes that are due and owing under the law should be collected. Spending cuts mean the IRS will not have the resources to ensure that all taxpayers pay their fair share, thereby effectively forcing compliant taxpayers to pay more to subsidize noncompliance by others. Moreover, the IRS will not have the ability to meet the service needs of the taxpayers who are paying our nation’s bills.”
Other Areas of Concern
- Taxpayer Impact of Possible Government Shutdown. Currently, in the event of a government shutdown, the IRS’s contingency plan does not make any allowance for the protection of taxpayers’ lives or property, an oversight the Taxpayer Advocate suggest amending.
- Tax Reform and Tax Complexity. The National Taxpayer Advocate is still requesting feedback from the public regarding tax simplification. To participate in this conversation, submit your comments to their electronic suggestion box found at the TAS website.
Universal Accounting Helps Tax Preparers Succeed
At Universal believe it’s important to prepare for the future, and we’re interested in seeing your future success as a tax preparer. Our Professional Tax Preparer Program is designed to help professionals like you master tax preparation, becoming efficient in the completion of individual and business returns. If you would like to learn more, visit Universal for a free video today!
We welcome your feedback on this article! Please post your comments below.
Resource
–. “National Taxpayer Advocate Submits Mid-Year Report to Congress; Identifies Priority Challenges and Issues for Upcoming Year.” 29 June 2011 IRS.gov
On June 23rd, the IRS announced that the optional standard mileage rates would increase for the months July through December 2011. This new rate is 55.5 cents per mile, a 4.5 increase from the rates previously used. Taxpayers use this standard to calculate deductible costs for operating an automobile for business purposes. It is also used by many businesses and the federal government to calculate the mileage costs when reimbursing employees.
The change comes after a significant increase in gas prices this past few months. IRS Commissioner Doug Shulman explained, “This year’s increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices. We are taking this step so the reimbursement rate will be fair to taxpayers.”
However, gasoline isn’t the only element used to calculate the standard mileage rates; depreciation, insurance and other fixed and variable costs are also included. The rate for calculating deductible medical or moving expenses has also increased from 19 cents per mile to 23.5 cents. The rate used for charitable organizations stays at 14 cents, an amount determined by statute and not the IRS.
In a press release posted to their website, the IRS reminds taxpayers they “always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
For more information, visit www.irs.gov.
As always, we welcome your feedback!
Universal’s Tax Training Will Prepare You for the 2011 Tax Year
Tax professionals charge 100 + an hour providing planning and preparation services to clients. In the course of one tax season, many tax preparers earn what others take an entire year to bring in. Universal’s Professional Tax Preparer (PTP) Program will enable you to help your clients save enough money in taxes to more than cover your fees. And what you earn in one tax season will more than cover the registration fee for this course.
Become a Professional Tax Preparer (PTP) before next tax season. Universal’s PTP program will not only give you hands-on training in completing full individual (1040) and business returns, but it will also enable you to be in compliance with new IRS regulations. Celebrate the end of tax season by investing in training that will enable you to increase your knowledge and skills. Call 1-877-833-7909 and enroll in the Professional Tax Preparer program now!
Resource
–. “IRS Increases Mileage Rate to 55.5 Cents per Mile.” 23 June 2011 IRS.gov
Spring 2011 SOI Bulletin Released
On June 14th the IRS announced that the spring 2011 edition of the Statistics of Income Bulletin is currently available. The Statistics of Income (SOI) Division publishes the bulletin on a quarterly basis and includes data gathered from tax returns filed most recently.
The spring issue includes information on tax returns filed in 2008 by individuals earning high incomes. Taxpayers with adjusted gross incomes of $200,000 or more filed over 4 million returns, representing only 3% of the total returns filed that same year. The IRS noted that articles on the following topics can also be found in this edition:
- Individual income tax data, by age of taxpayer. For tax year 2007, individual income taxpayers filed approximately 143 million returns. Of those, 27.1 million were filed by taxpayers who were ages 35 to 44, the most returns filed by any age group in that year.
- Individual income tax data, by state. Individual income taxpayers from Connecticut reported the highest average adjusted gross income (AGI) in the United States for tax year 2007. Connecticut was the only state for which average AGI exceeded $90,000.
- Foreign recipients of U.S. income. For tax year 2008, U.S. source income payments to foreign persons totaled $659.7 billion. Eight countries, including the United Kingdom, Cayman Islands, Germany, Japan, Switzerland, Canada, France and the Netherlands, accounted for almost 67 percent of all income paid to foreign persons.
- International boycott reports. For tax year 2008, 138 U.S. entities received about 3,700 requests to participate in boycotts unsanctioned by the United States.
- Gift tax returns. Individuals filed almost 235,000 federal gift tax returns to report $40.2 billion in assets transferred during 2008.
You can access your own copy of the SOI Bulletin at the IRS website. For more information on accessing a hardcopy for your files, refer to the corresponding press release.
Tax Deadline Nears for Tax Breaks and Filing Deferrals
In other tax news, the June 30th deadline is quickly approaching for completing some important time-sensitive tasks. As noted by the NACPB, these tasks include “amending cafeteria plans to conform with the Patient Protection and Affordable Care Act (PPACA) requirements; filing Forms TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), by individuals with signature authority over but no financial interest in the accounts for 2010 and earlier years; and claiming the first-time homebuyer credit for certain service members. Additionally, June 30th is the date on which the 0.2% FUTA surtax is scheduled to expire.”
For more information on each of these, visit the NACPB website.
Universal’s Tax Training Will Prepare You for the 2011 Tax Year
Tax professionals charge 100 + an hour providing planning and preparation services to clients. In the course of one tax season, many tax preparers earn what others take an entire year to bring in. Universal’s Professional Tax Preparer (PTP) Program will enable you to help your clients save enough money in taxes to more than cover your fees. And what you earn in one tax season will more than cover the registration fee for this course.
Become a Professional Tax Preparer (PTP) before next tax season. Universal’s PTP program will not only give you hands-on training in completing full individual (1040) and business returns, but it will also enable you to be in compliance with new IRS regulations. Use your summer vacation to increase your knowledge, skills and income. Call 1-877-833-7909 and enroll in the Professional Tax Preparer program now!
What tax news do you want access to? Post your feedback in our comments section.
On June 1st, the IRS announced the opening of the 2012 Low Income Taxpayer Clinic (LITC) grant application process. The LITC program awards matching grants of up to $100,000 each year to qualifying organizations looking to launch, grow or maintain a low income taxpayer clinic; interested tax preparers should act now!
The grant cycle begins in January 1, 2012 and runs through December 31, 2012. You must submit your application—either electronic or hardcopy—to the LITC Program Office in Washington, DC by July 15, 2012. The grants are awarded to organizations that provide education and outreach to non-native English speakers and service to low-income taxpayers with IRS grievances; applicants may apply for either program type or both. The IRS lists examples of qualifying organizations as follows:
- Clinical programs at accredited law, business or accounting schools whose students represent low income taxpayers in tax disputes with the IRS; and
- Organizations exempt from tax under Internal Revenue Code Section 501(a) that represent low income taxpayers in tax disputes with the IRS or refer those taxpayers to qualified representatives.
Organizations interested in applying will have a greater success rate if they 1) are receiving a grant for the 2011 cycle or 2) plan to fill one of the following 2012 needs:
- New clinic applications in Montana, Nebraska, Nevada and Wyoming
- ESL clinic applications in Connecticut, Kentucky, Montana, New Mexico and South Dakota
- New clinic applications in the metropolitan areas of Los Angeles and Sacramento, CA, specifically in the Los Angeles, Kern, Riverside, Ventura, El Dorado, Placer, Sacramento, San Joaquin, and Stanislaus counties.
- New clinic applications in the metropolitan areas of Philadelphia, PA, specifically in the Berks, Delaware, and Philadelphia counties.
- New clinic applications in the metropolitan areas of St. Louis, MI, specifically in the Cape Girardeau, Jefferson, St. Francois, and St. Louis counties.
The IRS notes, “We encourage existing clinics to consider expanding their services to cover these areas, where possible. Notwithstanding the criteria detailed above, all applications for clinics from all areas are welcomed and will receive full consideration.”
To learn more, visit the IRS website at http://www.irs.gov/pub/irs-pdf/p3319.pdf.
Universal Accounting’s Tax Training
If you would like to become eligible to prepare taxes under the new regulations established by the IRS, consider training with Universal Accounting. Not only could you earn the Professional Tax Preparer Designation, but you could also learn everything you need to know to pass the IRS Competency Exam and receive up to 60 CPE credits, depending on the number of modules you complete.
Be prepared for the changes that are impacting all paid tax preparers. Call UAC at 1-877-833-7909 to enroll in the Professional Tax Preparer Program today and improve your competitive advantage while securing your professional standing in the tax industry.
We welcome your feedback and comments. Please post!
On September 6th, the IRS released specifications regarding the new competency test required for individuals desiring to become Registered Tax Return Preparers.
