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:
- 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.
- 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.
- Empower exam managers as an alternative to SBSE fast track settlement program
- Enhance worker classification compliance with increased publicity for the voluntary classification settlement program
- Provide tentative independent contractor status for appropriate compliant taxpayers that provide notice to the IRS
- Update de minimis fringe guidance
- Revise IRS streamlined installment agreement program and related electronic payment systems including online and direct debit programs to improve collection
- Enhance collections by taking unsecured debt into consideration
- Revise the IRS’s penalty abatement processes and the Reasonable Cause Assistant (RCA) to provide efficient and consistent treatment for abatements
- Adopt technology to make taxpayer examinations more efficient and less burdensome to the taxpayer
- 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.
UAC’s Free Tax Resources
If you’re interested in accessing more tax resources, visit Universal’s website for free tax articles, a tax glossary, access to our tax forum, and convenient links to IRS tax forms.
Resource
–. “2011 IRSAC Public Meeting Briefing Book.” 16 November 2011 IRS.gov
On November 8th, IRS Commissioner Doug Shulman spoke at the AICPA (the American Institute of Certified Public Accountants) fall meeting in Washington DC. There he addressed some key issues that offer insight into the evolution and fine-tuning of the paid tax payer requirements.
First, Shulman revealed some interesting facts regarding paid tax preparers. For example, 740,000 individuals have registered and secured their PTIN, or Preparer Tax Identification Number, in the past year, joining the IRS’s growing database. Those individuals are encouraged to renew their PTINs, an annual requirement the IRS will strictly enforce. 60% of those individuals with current PTINs are not attorneys, CPAs, or enrolled agents.
The next phase in this program includes the competency testing and continuing education requirements. In addition, the IRS is also considering proposals that would require the performance of background checks.
Shulman also announced four key points:
- The creation of a ‘supervised preparer’ category among paid tax preparers which will apply to CPAs, attorneys, and enrolled agents who must secure and renew a PTIN but are exempt from the competency tests and continuing education requirements.
- A disclaimer statement to be used by Registered Tax Return Preparers which will clarify, in all promotional materials, “the IRS does not endorse any particular individual tax return preparer.”
- A clarification on the level of review the IRS will conduct before approving continuing education providers.
- A current hold on a previously announced requirement of background checks and fingerprinting.
Shulman also acknowledged plans to deal with tax preparers who have demonstrated significant noncompliance in the accuracy and integrity of submitted returns.
Finally, the commissioner talked about what he calls the “real-time tax system.” He explains as follows:
“…let me cast an eye toward the future and a potential new structure that would fundamentally change the way taxpayers and tax practitioners prepare and file individual returns…and one that leverages technological innovations. We’ve initially come to call this vision the real-time tax system because it would deal in real time and avoid audits that may take place years after a return is filed. We’re moving away from the after-the-fact, or “look-back” model – where we chased after taxpayers who had to hunt for, or recreate records and documentation – to one where we’re reducing burden. Under the vision of a real time tax system, the IRS could embed third-party information into its pre-screening filters, and could provide the opportunity for taxpayers to fix the return before we accept it, if it contains data that does not match our records. This is a tectonic shift.”
Shulman anticipates that such a change would generate more accurate returns with fewer problems upon return acceptance and less time spent auditing.
The IRS is making some significant changes of which all financial professionals must be aware. Visit the IRS.gov for more information.
Universal Accounting’s Tax Training
UA’s Professional Tax Preparer program 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 tax courses 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 in compliance with the IRS’s strict new requirements regarding paid tax preparers. We now offer online tax courses and tax training. Call 1-877-833-7909 to enroll today, and improve your competitive advantage while securing your professional standing in the tax industry.
Resource
–. “Prepared Remarks of IRS Commissioner Doug Shulman at the AICPA Fall Meeting in Washington, D.C. on November 8, 2011.” 8 November 2011 IRS.gov
On October 20th, the IRS announced that as a result of inflation they will be increasing personal exemptions and standard deductions come the 2012 tax year.
Law requires the yearly revision of tax provisions in conjunction with inflation. Actual amounts that will affect 2012 returns, which will be filed in 2013, are noted as follows:
- The value of each personal and dependent exemption, available to most taxpayers, is $3,800, up $100 from 2011.
- The new standard deduction is $11,900 for married couples filing a joint return, up $300, $5,950 for singles and married individuals filing separately, up $150, and $8,700 for heads of household, up $200. Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.
- Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $70,700, up from $69,000 in 2011.
Credits, deductions, and related phase outs.
- For tax year 2012, the maximum earned income tax credit (EITC) for low- and moderate- income workers and working families rises to $5,891, up from $5,751 in 2011. The maximum income limit for the EITC rises to $50,270, up from $49,078 in 2011.The credit varies by family size, filing status and other factors, with the maximum credit going to joint filers with three or more qualifying children.
- The foreign earned income deduction rises to $95,100, an increase of $2,200 from the maximum deduction for tax year 2011.
- The modified adjusted gross income threshold at which the lifetime learning credit begins to phase out is $104,000 for joint filers, up from $102,000, and $52,000 for singles and heads of household, up from $51,000.
For more information on these and other inflation adjustments, visit IRS.gov at Revenue Procedure 2011-52, which will be published in Internal Revenue Bulletin 2011-45 on November 7, 2011.
If you want to remain in the loop on important tax updates like these, join our free accounting and tax forums, follow us on Twitter and like us on FaceBook. You’ll be surprised at how Universal’s virtual community will enable you to stay in-the-know.
Resource
–. “In 2012, Many Tax Benefits Increase Due to Inflation Adjustments.” 20 Oct. 2011 IRS.gov
eFile Requirement for Paid Tax Preparers
For the January 2011 tax calendar, many paid tax preparers will be required, by law, to e-file federal income tax returns for individuals, trusts, and estates.
The IRS will be phasing in this new requirement over a two-year period, and, depending on their status, preparers must adhere to the following dates:
- 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.
The first date applies to everyone in a firm that reasonably expects to file 100 or more forms, whether or not individual preparers will prepare and file that amount. However, if clients so choose, they can independently submit paper forms.
The IRS reminds preparers that they must become an authorized e-file provider in order to comply with these requirements, a process that can take 45 days or more. If you haven’t yet done so, you should begin the process now in order to be ready to e-file during the upcoming tax season.
Required Due Diligence Checklists
On October 6, 2011, the IRS announced that it is issuing proposed regulations requiring paid tax preparers to file Form 8867, a due diligence checklist, beginning in 2012. The checklist must be submitted with any federal return claiming the Earned Income Tax Credit (EITC), a form the IRS currently requires all tax preparers to complete and keep in their personal records.
Over ten years ago, Congress initiated the requirement to reduce errors on forms claiming the EITC; of forms submitted claiming the credit, over 66 percent are filed by paid tax preparers. The checklist enables tax prepares to gather all the qualifying information from clients. In the past, the IRS has simply required preparers to keep copies of the forms with their records in the event that they ever requested a review. However, this new regulation requires that the form be submitted with returns beginning in January, 2012.
The Earned Income Tax Credit enables low and moderate-income working families to receive tax benefits dependent upon income, family size and filing status. The maximum credit is $5,751.
What do you think of the new requirements? Post your comments here!
Increase Your Options and Your Earning Potential
Becoming a tax preparer enables you to increase your competitive advantage and your earning potential! And the tax training necessary to become a preparer isn’t as long and painful as you might expect. Universal Accounting Center has made it easy with our online tax course.
Our Professional Tax Preparer program includes the following:
- Informative video instruction
- Full 1040 training
- Full business return (1065, 1120, 1120S) training
- One year 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.
UAC’s Professional Tax Preparer program will enable you to become proficient in tax preparation while helping you comply with new IRS regulations. Wouldn’t you like to have your own home-based tax business?
You’re just in time for next tax season. Call Universal at 1-877-833-7909 to enroll today!
Resources
–. “IRS Issues Proposed Regulations That Would Require Tax Preparers to File Due Diligence Checklist with All EITC Claims Submitted in 2012.” 6 Oct. 2011 IRS.gov
–. “Many Tax Return Preparers Must Use IRS e-file Beginning in 2011.” 29 Jan. 2011 IRS.gov
On September 21st, the IRS released more information for those looking to renew their PTINs (preparer tax identification numbers) and prepare for new suitability testing and continuing education requirements.
Notice 2011-80 informs tax professionals that PTINs must be renewed each calendar year using the online application or paper Form W-12. The required fee will be $64.25. All this is part of the return preparer initiative which enables the IRS to better monitor paid tax preparers and their compliance with federal tax laws. In addition to these requirements, some preparers also must pass a competency exam. All those who satisfactorily comply will be designated as a Registered Tax Return Preparer, meaning they are authorized to receive compensation for preparing tax returns for their clients.
The notice also clarifies the following:
- The IRS will continue to issue provisional PTINs through April 8, 2012 when they will be prepared to issue competency tests or suitability requirements to individuals so required.
- The 15-hour continuing education requirement for certain tax preparers will take effect in 2012. And individuals required to pass the competency exam before December 31, 2013 must complete their continuing education requirements for 2013 and on.
- Preparers who pass the suitability check must also provide their fingerprints which will be run through the FBI database.
- Those participating in the PTIN, acceptance agent or authorized e-file provider programs, yet residing outside the US, will not have to provide fingerprints. However, they must still comply with other suitability check requirements and meet any other requirements of the program in which they are participating.
- Attorneys, CPAs, enrolled agents, enrolled retirement plan agents and enrolled actuaries are, for now, also exempt from the fingerprinting requirement; they must still, however, answer the suitability questions on the PTIN application.
The IRS will be working with third-party vendors who will collect and process the fingerprints. In additional to any fees these vendors charge for their services, the IRS will also charge $33 for fingerprinting and $27 for testing. For more information, visit www.IRS.gov/ptin
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 tax training 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 your home-based tax business is in compliance with the new IRS tax preparer regulations. Improve your competitive advantage while securing your professional standing in the tax industry now. Call Universal at 1-877-833-7909 today and enroll in the Professional Tax Preparer Program.
Please leave us with your feedback and comments.
The Internal Revenue Service is enabling employers to voluntarily reclassify workers for a minimal payment in order to achieve compliance and cover past payroll obligations. This enables employers to avoid an IRS audit and potentially costly penalties. It is just one element of a “Fresh Start” initiative designed to help taxpayers fulfill all their tax obligations.
Doug Shulman, IRS tax commissioner, explains, “This settlement program provides certainty and relief to employers in an important area. This is part of a wider effort to help taxpayers and businesses get a fresh start with their tax obligations.”
Called the Voluntary Classification Settlement Program (VCSP), this plan enables qualified employers to secure considerable relief from unpaid federal taxes as long as they change the designation of workers and independent contractors to employees when the classification so applies.
To be eligible, the IRS requires the following from applicants:
- Consistently have treated the workers in the past as nonemployees,
- Have filed all required Forms 1099 for the workers for the previous three years
- Not currently be under audit by the IRS, the Department of Labor or a state agency concerning the classification of these workers
Those wishing to take advantage of the program can file Form 8952. It must be submitted 60 days before they begin treating workers as employees. Those accepted into the program need only pay a little over one percent of wages they paid in the past year to reclassified workers. They will not be required to pay interest or penalties. The IRS press release explains, “Participating employers will, for the first three years under the program, be subject to a special six-year statute of limitations, rather than the usual three years that generally applies to payroll taxes.”
For more information, visit the IRS.gov.
Order Your Copy of Red to Black, Today!
Businesses that struggle with this classification issue, are often experiencing deeper issues with the profitability of their businesses. If your clients are in the red, you can help them change that!
Discover how to use accounting information to help turn a business around. Red to Black in 30 Days will give you all the tools to apply the Universal Project Management Model required to save failing businesses. This book is a guideline for accountants, tax preparers and consultants who work with these disheartened small business owners. Each chapter focuses on a crucial aspect of the turnaround process. Simple steps are outlined from initial contact through stabilization and profitable growth. This can be the guide through your first turnaround experience or enhance the accounting and management skills of even the seasoned financial professional.
For the cost of this one book you can enhance your value to current and prospective employers. Order your copy now.
IRS Requests Public Comment on Proposed Affordability Safe Harbor for Employers
In a September press release, the Treasury Department of the IRS asked for public comment on the proposed affordability safe harbor for employers under the shared responsibility provisions of the Affordable Care Act.
The act, which will apply to various employers come 2014, will require business owners that do not offer reasonable health insurance to 50 or more full-time employees to make a “shared responsibility payment.” According to the press release, the proposed safe harbor has been “designed to make it easier for employers to determine whether the health coverage they offer is affordable.” The shared responsibility provision will not impact the employee’s eligibility for health insurance premium tax credits.
The IRS hopes that their request for feedback enables them to receive input from numerous stakeholders of various backgrounds. They are interested in determining how to best establish the shared responsibility provision so that it is “administrable, allows flexibility, and minimizes burden.” If you or any of your clients will be impacted by this provision, the IRS requests feedback.
IRS has indicated the follow three methods for submitting comments:
- E-mail to: Notice.Comments@irscounsel.treas.gov. Include “Notice 2011-73” in the subject line.
- Mail to: Internal Revenue Service, CC:PA:LPD:PR (Notice 2011-73), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
- Hand deliver to: CC:PA:LPD:PR (Notice 2011-73), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC, between 8 a.m. and 4 p.m., Monday through Friday.
The deadline for comments is December 13, 2011.
For more information, visit the IRS website.
More Information on Form 8939, Designed to Offer Tax Relief to Large Estates
The IRS is releasing more information on tax requirements for large estates of individuals who died in 2010. These estates will have until next year to file required returns and pay necessary taxes. Certain beneficiaries will also be able to claim penalty relief (on estates totaling more than $5 million) on their 2010 federal income tax returns. Revised estate tax forms have been made available on IRS.gov.
The IRS detailed the relief that will be provided:
- Large estates, opting out of the estate tax, now will have until Tuesday, Jan. 17, 2012, to file Form 8939. This special carryover basis form, required of estates making this choice, was previously due on Nov. 15, 2011.
- 2010 estates that request an extension on Form 4768 will have until March 2012 to file their estate tax returns and pay any estate tax due. Normally, a six-month filing extension is automatically granted to estates filing this form, but extensions of time to pay are granted only for good cause… No late-filing or late-payment penalties will be due, though interest still will be charged on any estate tax paid after the original due date.
- Special penalty relief is provided to many individuals, estates and trusts that already filed a 2010 federal income tax return, or obtained an extension and plan to file by the Oct. 17, 2011 extended due date. Late-payment and negligence penalty relief applies to persons inheriting property from a decedent dying in 2010, who then sells the property in 2010 but improperly reports gain or loss because they did not know whether the estate made the carryover basis election.
For more information, visit the IRS website.
Join Universal’s Tax and Accounting Forums to Discuss Topics with Your Peers
Being able to understand tax law changes is vital in managing a successful tax practice. Consider how Universal can help you sift out what will and won’t help you become a better professional. Join our free accounting and tax forums to interact with peers on this and other important tax issues. You’ll be surprised at how community encourages creativity and career enhancement.
We welcome your feedback in our comments!
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 you probably already know, the IRS has implemented new regulations requiring professional tax practitioners to register, test and participate in continuing education to ensure taxpayers are working with a reputable tax return preparer.
The integration of this new certification will require all paid tax return preparers who must sign a federal tax return to register with the IRS. The registration process requires each practitioner to have a federally assigned preparer tax identification number (PTIN), a background check, and will be charged a fee. Registration began September 2010. Everyone must register, even if you already have a PTIN.
Preparers who are not EAs, CPAs, or Attorneys must also complete an IRS competency test. A transition rule will give existing preparers three years to meet this requirement if they register before June 2011. There will be one exam. Once preparers pass the exam, they do not need to take it again. RedGear will offer training material to help you prepare for the exam.
Along with the exam, preparers must complete 15 hours of continuing education each year. This includes the following:
- 2 hours of ethics
- 3 hours of tax law updates
- 10 hours other tax related courses
Visit www.1040works for continued updates on the tax pro certification.
September 28th, 2011 in
Software,
Tax Tips |
Comments
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.”
