In recent years, the IRS has stepped up oversight of tax agents. This is due to the fact that the majority of taxpayers (about 70%) use the services of tax consultants. The number of tax fraud cases related to the activities of tax inspectors has also increased. As a result, the tax authorities have introduced new rules and requirements to control tax preparers: About 720,000 professionals meeting all IRS requirements are licensed to practice as tax preparers.
Of these, approximately 60% are not accountants, attorneys, or registered representatives. This group of tax advisors is subject to more stringent requirements for obtaining a tax advisor license. Some of these requirements for licensure as a tax advisor are described below.
Registration of all preparers
Now, all preparers must register annually with the IRS. To renew their license, they will be required to pay an annual registration fee. Some preparers, who are not part of the various professional groups, are required to have a minimum of continuing education in tax matters. The IRS conducts various continuing education courses for tax advisors.
Competency tests that some agents must pass
Tax agents who are not attorneys, accountants, or enrolled representatives must pass a competency test available on the IRS website. Passing this test is a prerequisite to becoming a tax agent.
Taxpayer Identification Number (PTIN)
All tax inspectors are now issued a Taxpayer Identification Number (PTIN). Taxpayers must indicate their PTIN number under their signature before submitting tax returns on behalf of their clients.
Annual Continuing Education
In addition to passing an initial qualifying examination, tax practitioners must complete at least 15 hours of tax training each year to renew their certification. The minimum number of training hours required is mandatory.
Mandatory e-filing
Most tax advisors will be required to submit all client tax returns electronically. An electronic filing account will be made available to tax advisors. The IRS will introduce a more advanced electronic filing system, which will include many new features to improve the efficiency of electronic filing.
Fingerprinting Proposals
One of the other IRS proposals calls for all non-signing employees involved in tax filing to be fingerprinted. The IRS has proposed fingerprinting to ensure the security of taxpayer data. However, this measure has been criticized by tax officials and related organizations such as the American Institute of Certified Public Accountants (AICPA). Critics argue that such a procedure would be costly and burdensome, especially for small businesses. The IRS has postponed the measure to review the situation and raise awareness.
About Author
Villie Walters Ramirez is a 32-year-old working as a tax officer at a taxation firm who enjoys business tax services nyc, accounting, and bookkeeping. She has a post-graduate degree in accounting, and she has a severe phobia of cats. She enjoys traveling A lot.
Roga Benton is a qualified social media expert at Coding The Line, London. She had graduated from the University of Cambridge.http://homeworldmanagement.co.uk/
