IRS to Tighten Regulation of Tax Return Preparers Posted by AVCU on 11:57 AM

The Internal Revenue Service (IRS) has announced that it will propose requiring tax preparers to register with the IRS, obtain a preparer tax identification number and to complete competency exams. Once proposed, the new rules will apply to paid tax preparers (not attorneys), certified public accountants, and enrolled agents. It includes credit unions that offer tax preparation services to members for a fee, and related credit union service organizations. Competency tests and on-going professional education will also be required for tax return preparers, and the ethical rules found in Treasury Department Circular 230 will be extended to preparers. "This expansion would allow the IRS to suspend or otherwise discipline tax return preparers who engage in unethical or disreputable conduct," the IRS said. In a press release, the IRS said that the "higher standards for the tax preparer community will significantly enhance protections and service for taxpayers, increase confidence in the tax system and result in greater compliance with tax laws over the long term."