Browsing Posts published on July 6, 2010
The Office of Professional Responsibility (OPR) has prevailed in an agency appeal involving issues which include the due diligence responsibilities of a CPA under the Rules of Practice before the IRS (Circular 230). The May 28th decision of the Appellate Authority has upheld the Administrative Law Judge’s (“ALJ”) disbarment of CPA Tim W. Kaskey found, among other things, that Kaskey failed to exercise due diligence in preparing tax returns for a corporation and its husband and wife shareholders.
The IRS is moving forward with its recommendations requiring all paid preparers to register with the IRS and to require preparers who are not CPAs, attorneys, or enrolled agents to pass a competency exam. Here is what we know to date;
- All paid preparers will be required to register and obtain a PTIN by January 1, 2011, or they cannot preparer returns for compensation.
- The online registration system is on track to begin September 1, 2010.
- All preparers who register by January 1, 2011, will have three years, until December 31, 2013, to pass a competency exam.
- The exams are scheduled to become available in May 2011.
- Once testing has begun, preparers will not be issued a PTIN until they have passed one of two exams.
- Once paid preparers register, they will be subject to the 15-hour per year continuing education requirement. The IRS plans to base the completion of the required continuing education on the preparer’s registration anniversary date as opposed to a calendar year for everyone. The continuing education requirement takes effect on January 1, 2011.
http://www.natptax.com/TAXKNOWLEDGECENTER/TRP/Pages/default.aspx
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© 2010 Roger Knecht