TaxMamas TaxQuips

All Comments

1. Toni McIntyre, CPA, E. A. Says:
   January 05th, 2010 at 07:56 am

   Now if they would let only registered preparers e-file & offer RALs that would likely drive the really bad preparers out of business since most of those who want to cheat also want their money fast.

2. Gregory Noe Says:
   January 05th, 2010 at 08:09 am

   I have resisted licensing on grounds that IRS should not do it. I don't like a system with built-in conflicts. As tax professionals, we argue our cases to the IRS and in the big picture it is counter productive to have the very same organization impose the rules for practice. It's a constitutional thing. That being said I guess I could go along if there was a totally separate division within the IRS for licensing AND IN PRACTICE THEY do not listen to the complaints of IRS agents who may be tempted to "rat" out a practitioner who is giving them a hard time.

3. Joseph M Montoya Says:
   January 05th, 2010 at 09:06 am

   I do not know what the answer is, however, a system has to be developed that all preparers should follow. I am getting out of a situation now where an enrolled agent and former IRS manager got me in a whole bunch of trouble. He was basically a glorified bookkeeper with a CPA title. You professionals should set up your own system to follow as you know what happens when government employees set up a system.

4. Thomas Avery Blair, EA Says:
   January 05th, 2010 at 09:39 am

   I've read the entire 54 pages of Internal Revenue Service Return Preparer Review. It indeed isn't "perfect" but it is a great start toward cleaning up the mess of the unlicensed and unscroupulous (spell-check not working today, sorry) "hacks" that cause taxpayers to be treated as scum bag tax cheats and/or who actually choose to assist taxpayers in intential tax cheating.

   I would first like to point out that tax cheats really don't cheat the government…they place the burden of the tax cheats' taxes onto the backs of honest taxpayers through higher taxes, unnecessary audits, etc. and the costs of the IRS efforts to collect both real and "imagined" tax bills due.

   That said, I for the most part support the 54 page report and its' intent. You should see the messes I clean up for taxpayers each and every year here in NE Florida brought about in whole or in part by uncaring, incompetent and greedy tax preparers.

   My final comment, at least for today on this subject, is simply this: "Talk is cheap…let's git 'er done." Taxpayers and tax preparers with a conscience deserve a break today and while it (the IRS program described in the 54 page long document) may be in some ways still flawed, it appears to be the best hope we have at this time to "glean the chaff from the wheat" in the tax preparation industry and profession.

   Too bad we don't have a similar review on our federal elected offials, but that is another issue and is not germaine to this topic about national testing and licensing of any and all tax preparers.

   Respectfully submitted,

   Thomas Avery Blair, EA

5. Roger B. Adams, EA Says:
   January 05th, 2010 at 09:51 am

   Tax preparers are supposed to be trained experts; that is what they hold themselves out to be.

   Like doctors, dentists, lawyers, accountants, architects, plumbers, masons, electricians, and a vast number of other professionals, the public puts their faith and money into the services these people provide in the understanding that they will perform a creditable, accountable, professional job.

   I am ecstatic that the IRS is demanding that kind of performance and ethical behavior, ratified by testing, from paid preparers. I am also delighted to read that a continuing educational requirement will be demanded.

   Now we can hope that the punks, fakes, and cheats will be ejected from the system.

6. Claire Says:
   January 05th, 2010 at 11:33 am

   I am glad to hear this but wonder if it's going to affect the major tax mills from which I've gotten several clients who were supposedly getting huge refunds and took RALs, only to discover they really should get under $100 back so the RAL people were coming after them with a vengeance.

   I interviewed (out of curiosity) at one of these places recently who sell their offices as franchises to people who know nothing about tax, then "tutor" them in the "have to know" areas. I was told that while they like to have people who are either studying accounting in college, and/or have knowledge of taxes, they certainly do not require it. In fact, as it gets down to the January 15 wire, they start hiring people off the street (especially if they need bilinguals) and give a 5-day crash course in tax preparation and there you go. Paid preparers!

   The owners/managers were told that the main burden of the tax return being correct was on the client; that it was totally up to them to make sure they bring in all needed documentation. Oh brother! And they do not ask for a copy of any prior year returns in an effort to try to know what to ask for. Pretty scary stuff.

7. Jo Ann Reagan Says:
   January 05th, 2010 at 11:40 am

   When I read the press release I thought "Taxmamma wins again," because you have been consistent in desiring all taxpreparers to be competently trained. I do agree with the comment that a different branch of the IRS should oversee training rather than the branch that checks returns. Too much of a chance of conflict of interest and a danger of "silent consensus by committee" rather than following the laws.

8. Mary Fran, EA Says:
   January 05th, 2010 at 04:32 pm

   Well, I just have to say HOORAY that EAs don't have to test again.
   Also I do a lot of Spanish language returns and I get so many people in whose prior returns need redoing. False EICs, etc. They don't know.

9. John Valko Says:
   January 05th, 2010 at 06:01 pm

   I am very happy to hear this. I have been in business 30+ years and think it is well overdue. There are too many people out there hanging shingles on their door claiming to be a Professional because they took a 5 or 6 week course and then undercutting the fees of the real pro's when they really don't have a clue what their doing. Those are people that will be driven out of business or won't get in it in the first place. And that's a good thing. I look forward to having to pass a test right along with any potential employees that may want to work for me during the tax season. Commissioner Doug Shulman is on the right track on this.

10. Dawn J Renner Says:
    January 06th, 2010 at 07:35 am

    Part of the problem is that the IRS & Congress can't seem to think ahead. Sure, it sounds good in the media sound bites that they passed Homebuyer's Credit legislation – but to originally not require any paperwork to substantiate it and just now be limiting it so that a credit can't be take by a minor – DUH! To not program the computers so that they would question 4 year olds receiving a credit?? The IRS has admitted to knowing about $650 million in fraud on this already. With that and the EIC and other refundable credits, they're taking the lid off the cookie jar and inviting the unscrupulous to rip the rest of us taxpayers off. With that kind of money involved, licensing may slow the process, but the unscrupulous will find ways around that too.

11. Erika Jesus Says:
    January 06th, 2010 at 08:42 am

    It's about time. In CA, we are regulated by the state with required CPE and a test to pass before you can prepare returns. But I believe it's 46 or 49 states that have no certification/CPE requirements currently. This is a problem. The taxpayers who are trying to do the right thing by going to a "professional" are being scammed and there are good intentioned tax professionals who are just getting it wrong because they have no CPE/testing requirements.

    I have been certified by CTEC (CA Tax Education Council) since before I began preparing returns. I am not yet an EA, but am working towards it and have passed the first test of the 3 required tests. I am surprised there are not more EAs in those states that have no requirements. I think they would strive to be recognised as competent when there are so many fly by night preparers in their midst.
12. Sam Bedros, EA Says:
    January 06th, 2010 at 11:46 am

    It is about time, most of my clients assumed that tax preparers have some kind of license to prepare taxes and they are appalled when I tell them that you need a license to cut hair but not for tax preparation.

13. Toni McIntyre, E.A., CPA Says:
    January 06th, 2010 at 11:56 am

    Erika, I think there are so few E. A.s because few people know what an E. A. is.

    I think testing will help IRS CI in that there will likely be bad preparers who know the law but do not follow it. With the testing they can no longer play dumb when caught.

14. Gregory Noe Says:
    January 07th, 2010 at 05:42 am

    I want to point out that in Ohio, EA's are not allowed to use the "EA" after their name like CPAs do. I would hope that this kind of preferential treatment (to CPAs) would also disappear with the this new thrust to license.

15. Roger B. Adams, EA Says:
    January 07th, 2010 at 07:40 am

    In reply to Noe and Montoya on 1/5 I would simply say that as an EA my enrollment arises from a program created by the IRS, with rules detailed in Circ. 230, and subject to the requirements thereof.
    I have never felt in the least constrained from fighting for my clients rights tooth and nail, and I have never had a problem with the Service; quite the contrary.

    By the way Mr. Noe, what is the rational for denying the use of the EA designation in Ohio? As far as the IRS is concerned we are counted along with attorneys and CPAs as "tax professionals. That is outrageous.

16. Toni McIntyre, E. A., CPA Says:
    January 07th, 2010 at 09:36 am

    In Texas EAs have to show it as E. A.
    The CPA society states it is because people might confuse it with CPA. CFPs and several others have the same requirement. If anything I think the periods & space make it stand out more & may, sometimes, result in people paying more attention to it.

17. A.G Says:
    January 07th, 2010 at 09:40 am

    In the late 70's while in the military I began assisting other airmen in the preparation of their tax returns continuing this until my retirement in the mid 80's. A few years later, while in the trucking business, I provided tax filing help to a few truck drivers who had no clue about meal allowances, per diem, employee business expenses, etc., and were either claiming erroneous deductions or missing legitimate deductions. I obtained a professional tax preparation program and a PTIN so to e-file those returns. I have to charge a small fee to cover costs but as I am twice retired I am not really "in business". I work out of my home office going to my clients location. I don't advertise, people are referred to me by one of my satisfied clients. I do a few FREE returns for those who cannot afford the big box companies.

    I have taken commercial tax courses and regularly use the IRS Link and Learn website to refresh and update my knowledge. I don't know all the answers but I know how to find them. When the new requirements are implemented I am done. I cannot afford to pay for the number of annual CPE hours and probably not the cost of the testing unless I pass on the costs to my clients.
    This would make me as expensive as the big box companies, maybe more so as I don't do as many returns. So as expected, government regulation will again drive small operations such as mine out of business. This is another step towards government control of private business ( as in healthcare).
18. Thomas Avery Blair, EA Says:
    January 07th, 2010 at 04:38 pm

    Of course there will be expense to maintain a professional (and a federal one at that) accredidation in tax preparation…it is one of the means and methods to separate those who do taxes as some kind of a hobby and those who seriously are concerned for the taxpayer and for the consequences of not knowing the ins and outs of professional tax preparation.

    Honestly, The smartest thing I ever did in establishing work that I really enjoy doing was to take the EA pre-test course online with TaxMama back in 2006. As I look back upon it, I didn't really have a grasp on the full realm of the EA work until I studied and passed the SEE…the first time I took it…as did both of my study buddies as well!

    I have worked for pay in tax preparation since 1981 and I did attend NATP and IRS-sponsored courses year after year, but it was not until I joined the ranks of EAs and became a member of NAEA, FSEA and GSEA (as well as NATP and NSA) did I feel a real grasp of all the things entailed in being a federally-licensed Enrolled Agent.

    Right now I'm honestly trying to mentor two ladies into becoming EAs (one has a 4 year degree in Accounting, the other has 15 years with JH) right here in my own community.

    I'm told by an IRS field auditor (just this past Tuesday after she too read the 54 page "study") that she was told by a "higher up" in Jacksonville, Florida that IRS management hoped to see a ten-fold increase in Enrolled Agents once the proposed regulation of tax preparers actually goes into full fact and enforcement.

    Also, before I close, I wish to invite anyone having a flair for re-writing and editing to assist me in providing a time-line history of the Enrolled Agent profession that runs parallel to the IRS history and the CPA profession as well. I have the first draft completed. Will share without obligation with anyone interested. I have invested over 100 hours in time, effort and research on the topic. It is informative, but simply too dry (and no pictures!):)

    Respectfully submitted,

    Thomas Avery Blair, EA

19. Dianne Says:
    January 09th, 2010 at 08:30 am

    Why isn;'t there a way to set "levels" for this? Some of us do not wish to become involved in corporate taxes and such. I live in a rural community and almost no one needs tax help for investments and other more sophisticated stuff.

    When the client contacts me for the first time, I determine whether or not I will handle the return. If not, I refer them to a qualified person, CPA, EA, etc.

    I limit my work to simple returns and returns for specific persons: truck drivers, low income, and small scale self-employed.

    If testing is required, then I would suggest that it be set up so that the preparer chooses which level of competency to become involved in via the IRS.

    D

20. Alan R Jones, EA Says:
    January 09th, 2010 at 10:20 am

    Diane, there are several levels of certification proposed. If you only want to take the minimum test you will allowed to prepare for A FEE only individual returns. And only have to do 15 hours a years of CPE. That is very reasonable and inexpenseive to attain. I am not sure what Gregory means about the EA designation in Ohio. I use it every chance I get and have never had anyone say otherwise and don't believe anyone other than the IRS can tell me to stop since it is a Federal license.