Who out there agrees that a law should be passed allowing only CPAs, EAs and tax attorneys to prepare taxes for a fee? If some of these questions are being asked by paid tax preparers, I would be finding another if I was the client. Unbelieveable.
Well when we ain't washing dishes at the Waffel House we needs something to get money that normally we get as tips cause Hooters wont hire us so we needs to do these here tax returns for "We Tote the Note Tax and Loan Services"
I suspect you'd see an increase in the number of preparers who failed to sign returns, not a decrease in the number of returns that contain errors. I personally have seen bad tax returns done by both enrolled and unenrolled preparers.
I'd be in favor of registration requiring a certain number of hours of tax-specific continuing education for paid preparers, though.
This is a matter handled by states. Oregon requires a license. California has a Tax Education Council which registers tax preparers. Both these states require continuing education.
I have been a professional tax preparer for more than forty years and still feel that I need far more tax education every year than is contained in any continuing education course. In addition to my required education, I subscribe to the IRS newsletters and I study the JK Lasser. This year I have access to both the ProSeries and Lacerte communities and found some of the questions a good reminder of some tax subjects I needed to research more thoroughly.
The Tax Code is enormous. A good tax preparer needs not only continuing education, but continuous education.
MT JULIET-CPA-LOVE YOUR COMMENTS-MAKES ME FEEL PROUD TO BE A LOWLY TAX
PRACTITIONER.
IT'S TRULY TOOOOOOO BAD THAT NOT EVERYONE WHO NEEDS TO FILE AN INCOME TAX RETURN, YOU DO THE MATH, MICHIGAN EA, IT SEEMS YOU HAVE PLENTY OF TIME ON YOUR HANDS TO READ ALL THE QUESTIONS, CAN AFFORD A CPA OR EA.
MOST OF MY CLIENTS ARE UNDER 50,000 GROSS A YEAR DO YOU KNOW WHAT KIND OF BURDEN THAT COST WOULD BE ON A MINIMUM WAGE COUPLE OR SINGLE PARENT FAMILY WOULD HAVE TO SACRIFICE TO AFFORD YOU!?????? I DO NOT THINK YOU WOULD LIKE TO WALK A QUARTER MILE IN THEIR SHOES.
BUT YOU CHARLOTTE 256 HIT THE NAIL ON THE HEAD. THE TAX LAWS CHANGE EVERY YEAR AND IT'S CONTINUING EDUCATION. I'VE PREPARED TAXES FOR 37 YEARS AND I LEARN SO MUCH EACH YEAR, AND THANKS TO PEOPLE ON THIS SITE -- MT JULIET, HAPPY TAX, WINO, ETC I THINK I AM HELPING PEOPLE THAT NEED THE HELP NOT JUST FOR THOSE THAT CAN AFFORD IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! WHEN YOUR CLIENTS CRY AT THEIR REFUND AMOUNT BECAUSE IT WILL HELP FIX THERE CAR, OR MORTGAGE. IT MAKES YOU FEEL GOD GAVE YOU A PURPOSE. MICHIGAN EA I TRULY HOPE THAT GOD GIVES YOU WHAT YOU DESERVE......
Linda Lou, please stop shouting.
Not only does all of the above need to be done, but there are other items that need to be addressed. In meeting with a new client yesterday, she told me her step-daughter wanted instant gratification so she went to one of the tax shops, and they charged her $200 for a 1040EZ, then added $50 RAL fee, all for a $400 federal refund. Who is going to get that to cease and desist, huh?
At least they are asking questions. There are too many preparers out there who don't. And there are EAs and CPAs who make egregious errors.
I'm not a CPA, EA or a tax attorney but I think I do a decent job of preparing taxes. Also I wouldn't do a tax return with items that I am not familiar with. I agree with Phoebe regarding the registration and continuing education also.
Maybe the list of CPAs, EAs, and tax attorneys should be expanded to include anyone wearing a cape and red tights :)
The cape, tights and shoes helps bring in business. The list could include Super Heroes and dogs.
You would have to limit that to talking dogs.
The badge helps too.
and dogs that can type.
Bye. Have to go home now and take my human for a walk.
I've been seeing very poorly done tax returns from CPA's for decades, including applying ancient tax law to current returns, even after the rules have been revised or off the books for years. Now that there are more EAs out there, I see a lot of errors from them too. A lot of the "continuing education" is just an expensive diploma mill with very little info and none of the depth required to do a good job. When I started offering more services to my clients, my continuing ed load and all the fees for it all, got truly onerous. While I continue to use far better sources - like the actual code, IRS auditor directions and industry analysis, and case level consults with colleagues - to actually be informed enough to do a good job. And I've learned priceless gems from IRS technical staff and auditors by using the old fashioned telephone - including getting them to clarify their own instructions for everyone's benefit.
It's good to remember history. When tax lawyers tried to claim they were the only ones who could do a good job representing people before the IRS, the CPA lobby got in there with a "wait a second, here" and tried to include just themselves and lawyers. Then the EA lobby formalized itself and did another "hold on - us too". I think the IRS has it right at their level - a pattern of mistakes will get you warned, then fined, then declared persona non grata. I am totally unconvinced that the state level diploma mills, and most of the organizations that get a continuing ed provider license in order to "professionalize" themselves, are really doing any better at educating people. The point is professionalism and systems for catching and fixing problems. Whoever causes them.
No offense intended to the answers already proffered (which I haven't read), bur we have far too many laws already. In general, unless it can involve life or death, I'm against licensure laws in general.. Let the existing laws and the free market sort 'em out.
The Civil Rights Law of 1964, arguably the most important piece of legislation of the 20th century, was less than 50 pages long. This health care abomination, it it's ever passed, will likely be 3,000 pages. God help us.
Those people filling in tax returns who have almost no knowledge of tax law don't even know that they don't have enough knowledge to prepare a tax return. And those big operations who claim to prepare tax returns, when their business is selling expensive loans to poor folks, have some way of convincing The Powers That Be that they actually train their so-called "preparers". The "classes" they offer are basically Pep Rallies for their company.
The only new law I'd like to see is a law against the making of new laws.
