Big Changes on the Horizon For 1.2 Million Tax Professionals

The IRS is silently taking over the tax return preparer's industry. The new requirements are as follows:

Beginning in September of this year (2010), federal tax professionals can start to sign up for a PTIN number. A PTIN number, is an identification number, issued by the IRS, to paid tax return preparers. It can be sued, instead of using a Social Security number.

All tax professionals, according to the IRS, web site, including attorneys, certified public accountants and enrolled agents, must have a PTIN number, if they expect to sign tax returns in 2011, for 2010 tax returns. It doe not matter, if you already have a PTIN, as many of us do. We must sign up, again, under the new system, to receive, our old PTIN

Beginning in mid 2011, tax professionals must take, and pass a competency test, in order to become a legal tax return preparer. This DOES NOT, include attorneys, CPAs, or Enrolled Agents, only Tax Accountants and Tax Preparers.

You must have a new, or re-assigned PTIN number, before, you can take the test.

To become, eligible as a tax professional, under the Department of the Treasury, IRS, new guidelines, you will have until, December 31, 2013, to pass the competency test.

The IRS will let us know more, in the spring of 2011, including, the fee, to take the test.

It will be interesting to see, who will be the first, online tax school, to guarantee, that, tax professionals, will past the test, if they sign up for their program. When asked, I have continued to say, this is a good thing. Being authorized by the US Government, to perform a task, has to include an increase in income, especially, when Continuing Education, is a part of the package deal.

You know, this whole process, seems a lot like, what we have been doing in California, all alone!

Cassandra Ingraham is a Tax Accountant and Instructor for Basic Tax Classes in the San Francisco Bay Area. During the balance of the year she can be found at http://www.taxeswilltravel.com providing Formal Introductions to Lenders for Accounts Receivable Funding (Factoring) and Purchase Order Funding.