Worst thing about it? I now fall under Circular 230 rules - the same exact standards of ethics and PENALTIES that a CPA or a lawyer is subject to.
Circ 230 is not to be trifled with if you play by the rules. In reality, it can be applied fairly subjectively - judges protect lawyers and CPA’s, but not every day preparers.
Yes, there is lots of fraud - but there are few signs that the IRS is working any more diligently to resolve them proactively than the INS is working to protect our borders.
Actually they go after CPA’s more than others as they have been held to a higher standard. Lawyers have been a target of the IRS for many years as they have been the largest group of non-filers(per the IRS).
I think that Circular 230 should apply to all paid preparers. CPA’s are still held to a higher standard due to their licensing regulations at the state government level and the additional ethical standards by their state CPA societies and the AICPA. I’m a retired CPA.
I had a problem with the minimal IRS audits performed in the last twenty years, compared to pre-1990. I saw the standards of care go down due to this and this was a major factor in my leaving the profession.
Congratulations on passing the return preparer test. If you want to grow within the profession, take the Enrolled Agent Exam. It’s not hard and gives you basically the same abilities as a CPA in handling tax matters before the IRS, without all the education requirements.
Just received this:
From the Desk of the Executive Director
As of Friday, Jan. 18, 2013, the United States District Court for the District of Columbia has enjoined the Internal Revenue Service from enforcing the regulatory requirements for registered tax return preparers. In accordance with this order, tax return preparers covered by this program are not currently required to register with the IRS, to complete competency testing or secure continuing education. The ruling does not affect the regulatory practice requirements for CPAs, attorneys, enrolled agents, enrolled retirement plan agents or enrolled actuaries.
Breaking News from the Return Preparer Office
We just finished a telephone conference with the Director of the Return Preparer Office in Washington, D.C. The call was rather short; however, it was to the point. In summary, here are the key statements
The ruling has been a setback to the RPO program
The IRS will stop scheduling RTRP exams by the end of today, January 22, 2013
The online PTIN system is currently not available
Continuing education for RTRPs is no longer mandatory, it’s voluntary
As your IRS practitioner partner, we will keep you updated on the latest news from the IRS. Voice your opinion, take our short survey now!