Ops! The IRS Acknowledging That Tax Preparers May Need to be Monitored More Closely

Ops! The IRS is acknowledging that not all tax preparers are ethical, well trained and without misconduct.

The Commissioner will submit recommendations to the Treasury Secretary and the President by the end of the year on ways to increase the proficiency of tax preparers. No group within the tax professional circle will excape review.

It is reported that the first part of leveraging the tax preparer community will be to involve themselves in a fact finding effort about what can be done to increase the proficiency of tax preparers throughout the US. Later this year (2009) a number of open meetings in Washington DC and around the country will be held with constituent groups to receive input and suggestions.

I can’t help but to think that the higher ups already know what they want to do and what changes they want to make. Having town meetings on the subject will help them decide if their ideas will fly or flop.

It is my suggestion that taxpayers as well as tax professionals get involved in this decision making process.

As it stands now, in the state of California, tax preparers have to renew their licenses every year by the end of October. California is way ahead of the curve. They realize more than any other state, that Congress votes on dozens of new tax laws every year. There is no other way for a tax prepared to stay on top of the new tax laws unless they have to complete 20 hours of continuing education each year.

IRS Commissioner Doug Shulman said that tax preparers help Americans with one of their biggest financial transactions each year. He went on to say that, “We must ensure that all preparers are ethical, provide good service and are qualified”

Having been a tax accountant in the state of California for over 10 years, I am use to the strict procedures that we must adhere to in order to keep our tax professional status.
There are a couple of major differences in the state of California tax laws and the federal laws that make a big difference when preparing returns, besides the regular differences in the tax return.

As I use to explain to my tax students. When a taxpayer want to deduct the cost of his non legal tobacco prescription – always remember that it’s OK for the state of California but NOT OK for the Federal.

The other major difference in the State of California’s collection process and the Federal collection process is that the State of California can collect taxes for up to 15 years back. The IRS collects past due taxes up to only 10 years back with some restriction that can prolong the10 year period.

The State of California will stay in your wallet for up to 15 years and then allow you to medically use that strange smelling tobacco to help you get through your illness. (Need a doctor’s prescription for medicinal medicine) However, when the State of California garnishes your wages, they only take 25 percent of your disposable income. Not so with the Feds – the IRS will take, in some cases, what ever amount that is available, leaving you will little or no pay.

Help with Federal back taxes, any state.
http://taxeswilltravel.com/pdr.htm