New IRS Rules RequireTax Preparer Registration
Do you want to become a professional tax preparer? Perhaps you have existing skills as a bookkeeper and would like to expand your service offerings.
Offering tax services is an easy way to expand a bookkeeping or existing financial services business business. You have the client’s financial information already, so it’s a natural progression to offer tax services. Most tax professionals charge an average of $150 to $350 for an individual return and even higher for business returns.
In most states, except for California and Orgeon, you don’t need any special education to become a tax preparer. However, this is going to change. In 2011, the IRS will start mandating preparer registration.
Currently, the IRS is working on a plan to require registration for all tax professionals. This is expected to start sometime between 2011 and 2012. If you decide to offer tax services, it might be a good idea to start researching your educational options right away, so you can be prepared when the new rules go into effect.
The best way to avoid this registration is to become an Enrolled Agent! Enrolled Agents are automatically enrolled to practice before the IRS and are therefore exempt from the registration requirements.
There are many enrolled agent study review courses available. A good review program can mean the difference between a passing and failing score on the EA Exam. The IRS Enrolled Agent Exam is exclusively offered by Prometric, which has been contracted to administer the exam for the Internal Revenue Service.
In the video below, Kathy Stanek, CEO of the National Association of Tax Professionals (NATP), outlines the details and requirements of the upcoming Tax Preparer Registration. The IRS has announced that anyone who prepares a return, including paid signing preparers, will need to be registered, meet CPE requirements, and pass a competency test. The National Association of Tax Professionals is poised to help all tax preparers successfully comply with these new requirements.
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