On July 28, 2011. the House Ways and Means Committee - Subcommittee on Oversight held a hearing to review the progress of the return preparer program. Among those who testified were representatives of the National Association of Tax Professionals, American Institute of Certified Public Accountants, National Association of Enrolled Agents, H&R Block, and others. Also testifying was David Williams of the IRS Return Preparer Office.
A great deal of support for the steps that the Internal Revenue Service has taken was voiced, along with some concerns.
The National Association of Tax Professionals (NATP) testified. Their representative expressed great concern that the changes to Circular 230 related to Registered Tax Return Preparers (RTRP) create an uneven playing field for non-legacy (other than attorneys, CPAs, and Enrolled Agents) tax preparers. Specifically, there is concern that RTRPs will not be able to adequately provide advice to clients pursuant to Section 10.3(f)(3) of Circular 230. Concern was also voiced that the exceptions carved out for those supervised by attorneys, CPAs, and Enrolled Agents again creates competitive disadvantages for some of the preparer community. http://waysandmeans.house.gov/UploadedFiles/Cinquemani.NATP_testimony_July_28.pdf
The National Association of Enrolled Agents (NAEA) was concerned that the upcoming competency exam will test the Form 1040 series only, while there will be no testing of non-Form 1040 type returns. At the same time, preparers can prepare non-Form 1040 without any testing of their competency. NAEA also was concerned regarding the promotion and enforcement elements of the program. http://waysandmeans.house.gov/UploadedFiles/Gary_Testimony728.pdf
H&R Block testified and stated that the IRS competency exam is redundant to the H&R Block program related to their own tax preparers. They also expressed a desire for the implementation of a group registration program. http://waysandmeans.house.gov/UploadedFiles/PickeringHRBlock.pdf
The hearing showed broad support for the IRS certification program, but also a number of concerns. From the various perspectives of those who testified, special concerns were voiced. Our community, the tax return preparer community, is diverse, so some diversity of opinion is to be expected.
Tax Preparer Learning Systems, LLC
www.taxpreparerlearningsystems.com
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