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i am supportive of this legislation especially since under current law the Treasury Department has to go to court and obtain a conviction in order to shut down a fraudulent preparer. However this will not halt the preparation of bad returns. My state of Oregon requires the Licensing of all Tax Preparers plus 30 hours of CPE every year. This law applies to every preparer except CPAs and Attorneys. Earlier this year I picked a new business client (Monthly Write Up, Payroll & Tax Returns). The prior preparer has been licensed since 1991, has a bigger office than mine with licensed preparers working for her. My client's 2019 1120S and 1040 were poorly prepared with a number of mistakes showing a real lack of tax knowledge. Just because you are licensed doesn't mean you are competent.

From Accounting Today Link to Entire Article "Internal Revenue Service regulation of return preparers, sidelined since its prohibition by the Loving decision, is back for another try. Key measures in the bill include the following: Giving the Treasury the authority to regulate paid tax return preparers; Clarifying that the authority being provided is to reinstitute the IRS’s 2011 paid preparer regulatory program; Giving the IRS authority to revoke an incompetent or fraudulent preparer’s Preparer Tax Identification Number; Clarifying that certain nonsigning preparers — those who prepare returns under the supervision of an attorney, CPA or Enrolled Agent — are not required to obtain a PTIN; and, Requiring a Government Accountability Office study on the sharing of information between the Treasury Department and state authorities regarding PTINs issued to paid return preparers and preparer minimum standards." I hope they get it right this time. I still find it hard to believe my barber has to get a license to cut hair but anybody can prepare a tax return.

As long as there are DIY'ers, anybody can do taxes, and anybody can cut hair. Truth. We need the DIY'er returns audited.

I hear ya... This is bad hair cut day...

If the unexpected (or the inevitable) happens, low SS numbers affects survivors, non-working spouses, disabled dependents, etc. Hugely complicated issue, but if one believes the eagle will never let SS founder, then it is a factor too often ignored. Personally, my area of worry and frequent discussion is not what happens to the wage earner, but to think about their dependents, especially disabled dependents. A child on SSI can switch to SSDI based on the parent, which if managed to optimize earnings (strive for SS limit each year) can be a life changing amount for the recipient.

Also applies to Schedule C and 1065 filers who have reduced their tax liabilities over the years with the magical section 179 deduction.

Job Security. Thanks!!

I miss the 30 years before this where the 1040 remained mostly the same. Hell, I used to know some line numbers by heart.

Well, in the big picture, you are increasing your Social Security benefits by taking a reasonable salary. I've had people look at their Social Security earnings in the 50s or later and panic because they haven't had adequate Social Security earnings.

For the amount that goes to the seller, set it up as an other liability since it's not income to the broker, ever. He's just holding the money. The commission portion should be reported as income.