Question

1.Should tax return preparer’s be required by law to be certified and to fulfill yearly continuing education requirements? What are the potential arguments as to why and why not? Can the IRS regulate tax return preparers? Why or why not?

Answer 1

Filing taxes can be complicated. As a result, many people get help from tax preparers. According to IRS data, 81.2 million Americans paid tax preparers to help them complete their returns

3 Reasons Why Should Certify All Paid Tax Preparers -

1. Regulating all preparers would boost accuracy in tax filing.

2) Low-income filers are especially vulnerable

Low-income individuals are especially likely to seek help from paid preparers in filing their taxes

3) Regulating paid preparers would increase transparency of fees

**continuing education requirement-

If you prepared 10 or more New York State personal income tax returns or reports during 2014, 2015, and 2016, you must complete four hours of continuing education coursework by the end of December 2017.

If you prepared fewer than 10 New York State personal income tax returns during the years 2014, 2015, and 2016, you must complete:

16 hours of continuing education coursework by the end of December 2017, andfour hours of continuing education coursework each year after that.

***Yes the IRS should regulate the TAx return prepares

New IRS Regulations: PTIN

At the start of the 2011 tax season, the IRS required that all paid tax return preparers apply for a Preparer Tax Identification Number (PTIN) before preparing any federal income tax returns. Paid tax return preparers use this nine-digit number, which they'll be required to re-register each year, on all tax returns or claims for refund. With the new PTIN system in effect, all paid tax preparers are required to register with the IRS and have a PTIN in order to legally prepare tax returns, even if a supervisor ultimately reviews and signs off on the documents.

In keeping with the IRS's intent to use the new PTIN system to ensure that tax preparers are qualified to prepare tax returns, the IRS now plans to review the tax returns of preparers who used an identifying number other than a PTIN, did not use any identifying number, or did not sign the tax returns they prepared. Tax preparers found in violation will be notified by the IRS, and could face fines and criminal penalties for failure to either comply or desist.