Elrod Posted December 2, 2015 Report Share Posted December 2, 2015 With tax season just around the corner, Congress is taking another stab at legislation to license tax preparers. Representatives Diane Black (R-TN) and Pat Meehan (R-PA) have introduced H.R. 4141, the Tax Return Preparer Competency Act http://www.forbes.com/sites/kellyphillipserb/2015/12/01/congress-moves-towards-granting-irs-authority-to-license-tax-preparers/?ss=taxes Quote Link to comment Share on other sites More sharing options...
mcb39 Posted December 3, 2015 Report Share Posted December 3, 2015 With more people losing jobs every day; there are many who are looking for a way to produce income another way. I know that a lot of them are taking the HRB course with the thought in mind of putting themselves forth as tax preparers. I KNOW this because my assistant is taking that course and it is difficult. They are cramming a lot into their heads in a very short period of time. She came in yesterday to do a couple practice returns on my software. Now, my assistant is a smart cookie and has been studying diligently. She also attended the tax seminar in November with me. However, she is no more ready to prepare a complicated tax return on her own than I was forty years ago. This is one of the things that frightens me. I know my gal will be OK because she will be working with me; but honestly, they are throwing a lot of tough examples at these students. She had never in her life heard of most of them. Of course, they are dwelling on the credits that are available for the clientele that HRB feeds on. Yes, we have to know these things. We also have to know much, much more. I do believe that paid preparers should be tested and licensed to some degree. That is why I took and passed the (now extinct) RTRP test and continue to keep my AFSP credentials current. I want my clients to be able to trust me. More importantly, I want to be able to trust myself. If there is the slightest doubt in our minds that something we did on a return might not be exactly correct; we NEED to look it up. We have to do everything we can to prepare a complete and correct return. In closing, I thank this board for everything that I learn here. And I have learned a LOT! I subscribe to several other reference materials as well. I hope that you all have a profitable and successful tax season and a very Blessed Holiday Season. 4 Quote Link to comment Share on other sites More sharing options...
Elrod Posted December 3, 2015 Author Report Share Posted December 3, 2015 Marilyn, You wrote what we all should copy and paste, as a letter to our congressmen/women....Thank You for your thoughts... And....I wish you a very Blessed Holiday Season... 2 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted December 3, 2015 Report Share Posted December 3, 2015 9 minutes ago, Elrod said: Marilyn, You wrote what we all should copy and paste, as a letter to our congressmen/women....Thank You for your thoughts... And....I wish you a very Blessed Holiday Season... Quote Link to comment Share on other sites More sharing options...
BLACK BART Posted December 16, 2015 Report Share Posted December 16, 2015 On 12/3/2015 9:13:12, mcb39 said: With more people losing jobs every day; there are many who are looking for a way to produce income another way... I think you're right -- they're coming in the windows. TurboTax has killed off quite a bit of the "easy" short-form traffic -- "free" federal is pretty hard to compete with and thank Allah that AR has a state tax. Too, new franchises pop up quickly. Sometime ago a client from the (now defunct, I think) "MO-MONEY" outfit stopped by asking me to fix his rejected EF; said they couldn't/wouldn't fix it. He wasn't my former client and I didn't have the time to try (more holes in it than a dartboard), but, curious, I asked why he left his previous preparer. Reply: "They gave me a free T-shirt." Go figure. Maybe I need to offer a six-pack with every return...... 4 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted December 16, 2015 Report Share Posted December 16, 2015 (edited) 1 hour ago, BLACK BART said: I think you're right -- they're coming in the windows. TurboTax has killed off quite a bit of the "easy" short-form traffic -- "free" federal is pretty hard to compete with and thank Allah that AR has a state tax. Too, new franchises pop up quickly. Sometime ago a client from the (now defunct, I think) "MO-MONEY" outfit stopped by asking me to fix his rejected EF; said they couldn't/wouldn't fix it. He wasn't my former client and I didn't have the time to try (more holes in it than a dartboard), but, curious, I asked why he left his previous preparer. Reply: "They gave me a free T-shirt." Go figure. Maybe I need to offer a six-pack with every return...... I had a client call and tell me that she went to HRB last year because they gave her sister a ($$$) gift certificate for referring them. She also said that they were totally astonished when they received the bill for their prep. She said, "We will be back to you this year!" I made no comment as I really don't want her back. On the other hand; it is getting more and more difficult to self-prepare. I got two new clients this year who prepared with Turbo Tax and needed the returns amended. Both got large refunds after the amendment. All in all, I stand by my original post. I take ethics seriously. I won't deduct something just because my client knows someone whose preparer said they could deduct some really gray area items. Preparing income tax returns is not a game or a competition. It is a serious business. We NEED to know what we are doing and why. We NEED to have resources that will give us the answers that we don't know for sure. Some of us NEED to have regulated boundaries or get off the ship. Edited December 16, 2015 by mcb39 added more 3 Quote Link to comment Share on other sites More sharing options...
Catherine Posted December 16, 2015 Report Share Posted December 16, 2015 1 hour ago, mcb39 said: <snip>We NEED to know what we are doing and why. We NEED to have resources that will give us the answers that we don't know for sure. Some of us NEED to have regulated boundaries or get off the ship. #1. Absolutely. #2. Double absolutely! #3. Yeah, but: I would rather see them spend the money on an aggressive public-education campaign coupled with very aggressive prosecution of crooked preparers. Anyone with the intent to commit tax fraud will have no quibbles about lying on exams, giving the "right" answers on ethics CPE tests without any intention of acting ethically, and generally being cheaters and criminals. Those people need to be forcibly removed from the profession (and possibly society, by incarceration), and anyone needing a little bit of a goose to tread the straight and narrow will fear prosecution more than some one-time licensing exam. 4 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted December 16, 2015 Report Share Posted December 16, 2015 1 hour ago, Catherine said: #1. Absolutely. #2. Double absolutely! #3. Yeah, but: I would rather see them spend the money on an aggressive public-education campaign coupled with very aggressive prosecution of crooked preparers. Anyone with the intent to commit tax fraud will have no quibbles about lying on exams, giving the "right" answers on ethics CPE tests without any intention of acting ethically, and generally being cheaters and criminals. Those people need to be forcibly removed from the profession (and possibly society, by incarceration), and anyone needing a little bit of a goose to tread the straight and narrow will fear prosecution more than some one-time licensing exam. I totally GET that! However, I studied and studied HARD for the RTRP; which came to naught. That didn't take away the things I learned. Nobody knew what that test was going to entail. I agonized an entire weekend and traveled 200 miles to take that test. I don't believe the average man on the street; trying to make a few extra bucks is going to go through all that. I have no desire to be an attorney. I have no desire to be a CPA or an EA, because at 75 years of age it would hardly be worth the time and expense. I just don't want to be dumped in the same pot with anybody who suddenly decides it would be a good idea to prepare taxes for money. Also, truthfully, I think the ones who need the most regulation are the HRB and Liberty employees. My assistant "graduated" with 100% from the HRB course. She is no more ready to prepare a tax return on her own than she was before she took the course. She just heard about and learned some things she had never heard of before. As we go forward, we will see how much she retains because all of the tests were open book. On the other hand, I really need her assistance and she will attempt to do whatever I tell her to do. BUT, I have to tell her and this year I will be telling her to "look it up"! There is no substitute for hands-on learning and experience. When I renew my PTIN and my EFIN and take courses to enable me to continue as an AFSP; it means something to me and it should mean something to my clients. And, it should mean something to every person who puts themselves forward as a paid tax preparer. 4 Quote Link to comment Share on other sites More sharing options...
Elrod Posted December 16, 2015 Author Report Share Posted December 16, 2015 You have to have a license to drive a car,...Don't mean every one knows how... I believe that if there were still blacksmiths.....They'd try to license them....After all, you don't want your horse to look funny with bad shoes. 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted December 16, 2015 Report Share Posted December 16, 2015 55 minutes ago, Elrod said: You have to have a license to drive a car,...Don't mean every one knows how... I believe that if there were still blacksmiths.....They'd try to license them....After all, you don't want your horse to look funny with bad shoes. There ARE still blacksmiths - one of our family friends is one. No licensing. Just fyi and my own amusement at the example you picked. 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted December 16, 2015 Report Share Posted December 16, 2015 1 hour ago, mcb39 said: I totally GET that! However, I studied and studied HARD for the RTRP; which came to naught. <snip> And congratulations. I also agree that there *should* be official designations aside from EA or CPA - such as RTRP. I'd just rather see the IRS spend the funds on "required" new licensing on cracking down on crooks. I don't care if the crooks are CPA's, EA's, RTRP's, or have no designation whatsoever. 1 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted December 16, 2015 Report Share Posted December 16, 2015 1 hour ago, Elrod said: You have to have a license to drive a car,...Don't mean every one knows how... I believe that if there were still blacksmiths.....They'd try to license them....After all, you don't want your horse to look funny with bad shoes. Good points!!!!! 52 minutes ago, Catherine said: And congratulations. I also agree that there *should* be official designations aside from EA or CPA - such as RTRP. I'd just rather see the IRS spend the funds on "required" new licensing on cracking down on crooks. I don't care if the crooks are CPA's, EA's, RTRP's, or have no designation whatsoever. Well, voluntary is what some of us are doing now and that is fine with me. It should be fine with others as well. The IRS shouldn't necessarily have to be the regulator. Quote Link to comment Share on other sites More sharing options...
taxxcpa Posted December 16, 2015 Report Share Posted December 16, 2015 Donald Trump says he is going to drive H & R Block out of business (along with all other tax preparers) Carly Fiorina is going to have a three page tax law, which would have the same effect. And who knows whar Jeb Bush wants to do about it Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted December 17, 2015 Report Share Posted December 17, 2015 4 hours ago, mcb39 said: The IRS shouldn't necessarily have to be the regulator. They should not be the regulator, any more than the AICPA should be. Or the IRS control the Tax Court. A basic rule in accounting is division of responsibility. 5 Quote Link to comment Share on other sites More sharing options...
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