New Tax Legislation

[Christian]

I note the new tax legislation being proposed includes the right for the Treasury Department to regulate the industry. I passed the original RTRP test but it was a real pain in the butt. In addition it required a 130 mile road trip just to get to and back from the test center. I hope it dies in committee but I rather suspect it may very well pass this time around. So many items addressed in the original test are never seen by small time tax folks like myself.

[SaraEA]

CPAs and EAs have complained forever that half of the issues on their tests are things they will never, ever see in practice.  Probably true, but you never know.  I'm sure I forgot a lot of these things that I "learned" studying for the SEE, but guess what?  Every so often an issue comes up and something in a hidden brain cell tells me there's a rule for that.  Then at least I know to look it up.  So, while some tax areas may seem remote and you'll likely never encounter them and will forget the details, knowing that they exist may be helpful someday.

I am resigned to the fact that the industry needs regulation.  We have all seen the shady and/or stupid things that some tax "pros" produce.  And we've all have potential clients walk because they didn't like the result.  Where do they go?  Back to the jerk who lets them deduct commuting miles, "uniforms that consist of jeans or black pants, nonexistent education, you name it.

[Christian]

I am sure what you say is correct Sara but nowadays if I encounter a sticky tax question we have forums such as this one in which our fellow folks in the field can share their knowledge. CCH just sent me two useful book sources of tax law as an incentive to early renew which will replace my older ones. Most of what I encounter are run of the mill situations which I have dealt with for ages and the couple of questions I had this past season I submitted here or contacted the practitioner help line. According to Kiplinger the tax legislation being proposed will likely not be addressed until next year so we have another year to wait perhaps.

[BLACK BART]

On ‎5‎/‎25‎/‎2017 at 8:12 PM, SaraEA said:

...I am resigned to the fact that the industry needs regulation.  We have all seen the shady and/or stupid things that some tax "pros" produce.  And we've all have potential clients walk because they didn't like the result.  Where do they go?  Back to the jerk who lets them deduct commuting miles, "uniforms that consist of jeans or black pants, nonexistent education, you name it.

Yeah I guess you're right.  I used to object to this because I knew many capable preparers (no credentials) who handled run-of-the-mill returns at a reasonable price.  Now, many of those have retired or died and I get guys like a 22 year-old (apparently shopping around) who complained to me this year (after I gave him the 8867 quiz): "You guys are the only one who ask me all that stuff!"  From that, I'm inferring that maybe even the big-box franchise employees are letting things slide.

I'm already long-in-the-tooth and only got the EA ten years ago because I thought I was going to be forced to, but if the RTRP is resurrected I'd say most competent preparers could handle that okay and not be run out of business.  Kinda inconvenient, of course (I sweated blood for that EA test ).

[Richcpaman]

Congress should require that every tax return that is efiled has a marker back to the original box S/N, and a requirement that the S/N is registered somehow.  So that the "shake the box" bad guys can be tracked down.  Even bogus registration info is still attached to a taxpayer that can be quizzed.

I do not care if there is more preparer regulation, I am a CPA and past all that.  All the regulation in the world does not make a difference to those that are outside the rules and stay there....

Rich

[B. Jani]

I believe, The real problem is DIY software which allow you to do 3 or 5 tax return with one purchase. that is where the main abuse is. Those who are living honest living will not try or think about screwing up the bread and butter. There should be more scrutiny for every efile return and no refund in 10 days until everything checked out.

[Gail in Virginia]

It isn't just the DIY software that people buy - I recall reading about one "preparer" who used the IRS free-file site for all her clients.  She only did returns where people's income was low enough to qualify, and I am sure that almost all, if not all, of her clients got EITC.  Her prices were very low, because she had no overhead.  But regulating preparers will not stop people like her who don't sign returns as preparer. 

[Pacun]

1 hour ago, Gail in Virginia said:

It isn't just the DIY software that people buy - I recall reading about one "preparer" who used the IRS free-file site for all her clients.  She only did returns where people's income was low enough to qualify, and I am sure that almost all, if not all, of her clients got EITC.  Her prices were very low, because she had no overhead.  But regulating preparers will not stop people like her who don't sign returns as preparer. 

In DC there is a guy who paper files every return and never mentions himself on the Return. He moved to MD really closed to the DC border because DC was on his case and has been doing this for about 20 years...even after being in Jail for preparing fraudulent returns. Immigration put him in jail again for 6 months last year between June and Nov and one of the extenuating circumstances mentioned in court was the fact that he was a person of good moral character who prepared taxes for the community. When I read that he was a tax preparer I laughed because he never signs any return so there is no record he prepares return.