The Internal Revenue Service wants to set new rules on income tax preparers nationwide. IRS Commissioner Doug Shulman issued a proposal on January 4, 2010 citing federal regulation will help reduce fraud, improve compliance and close the tax gap.California and Oregon are the only states that have set tax education requirements for its income tax preparers. In 2009, New York passed legislation to require its tax preparers register with the...more
Why more and more taxpayers these days have been doing e-file taxes online; the reason is its easy and convenient method of filing taxes. Preparing taxes using free tax software program, your tax return is more likely to be accurate and perfect. If you fill up the proper information regarding your financial as well as personal details required, used the tax credits and deductions sensibly, then youll have less chances of getting feared of being...more
There are three types of tax preparers: The competent, the incompetent and the unscrupulous. The reason? Except for California, New York and Oregon there are no standardized requirements for paid tax preparers. In California, tax preparers who are not a licensed attorney, certified public accountant (CPA) or IRS enrolled agent (EA), are required by law to register with the California Tax Education Council (CTEC). All CTEC-registered tax preparers (CRTPs) must complete tax education courses each year and obtain a surety bond before they can prepare tax returns for a fee.In Oregon, tax preparers must be licensed through the Oregon State Board of Tax Practitioners. Oregon tax preparers are required to pass a competency exam before they can prepare tax returns professionally.In 2009, New York passed legislation to mandate that its tax preparers register with the state; however, proof of education on tax laws is not required. Maryland is also working to implement legislation it passed in 2008 to require state licenses for tax preparers.Consumers in other states should be extremely careful when choosing a tax preparer. There is no oversight for tax preparers who are not an...more