There is legislation pending in the US Senate that would require all tax professionals
to be subject to the oversight of IRS's Office of Professional Responsibility
and the ethical rules laid out in IRS's Circular 230.
The bill, Senate Bill 1219 is called the Taxpayer Protection and Assistance Act of 2007.
It's designed to do two things:
1) To ensure that taxpayers are protected and give you some comfort level
the tax professional you're dealing with has adequate experience, training,
and ethics.
2) To ensure that all tax professionals must pass an IRS tax examination,
to prove they are competent. IRS would provide a new form of national credential.
Presently, acceptable credentials include Enrolled Agent (EA),
Certified Public Accountant (CPA), attorney, or Enrolled Actuary (also EA).
3) To provide substantial pentalties for any paid tax preparer who does not comply.
Proposed penalties start at $1,000 for the first two. Then $500 each, for every other
tax return prepared without proper licensing.
This bill will probably pass. The EA and CPA lobbies are pretty strong. The bill
is promoted by the National Society of Enrolled Agents, even containing
some of their proposed wording .
So, if you're a paid tax preparer and have never gotten enrolled under Circular
230, this is a good opportunity to step up to the plate. You have the whole
summer to study
for IRS's Special Enrollment Examination.
(Incindentally, if you aren't a paid preparer, but always wanted to be...and
have done some tax returns and understand the concepts and terminology - you
might want to consider joining
this class, too. You don't need a degree - and you can work from home.)
For a copy of Senator Bingham's original speech when he first introduced the concept: click
here.
For a copy of Senator Bingham's current Senate Bill, s1219
click
here.
