Tax & Accounting News

Do you need extra regulation for postcard sized tax returns?

by
Lee Reams II
on
5/23/2017
Do you need extra regulation for postcard sized tax returns?

In an unexpected move, hidden deep in the just released budget, the Trump administration has included language that would allow the Treasury to regulate paid tax return preparers. This has been a hot topic and part of a lawsuit in the Loving vs IRS court case. The basis for the court case is that the IRS has insufficient statutory support to regulate tax preparers. Since the IRS tried several times to circumvent the ruling with no success, providing the Treasury the authority to regulate paid tax return preparers should be resolved if this is enacted.

Specifically, the Trump budget included the following statement:

Increase oversight of paid tax return preparers. Paid tax return preparers have an important role in tax administration because they assist taxpayers in complying with their obligations under the tax laws. Incompetent and dishonest tax return preparers increase collection costs, reduce revenues, disadvantage taxpayers by potentially subjecting them to penalties and interest as a result of incorrect returns, and undermine confidence in the tax system. To promote high-quality services from paid tax return preparers, the proposal would explicitly provide that the Secretary of the Treasury has the authority to regulate all paid tax return preparers. This proposal would be effective as of the date of enactment.

This will be a hotly contested issue, with the AICPA and National Association of Enrolled Agents providing their insight. Stay tuned for more breaking news.

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Lee Reams II

Lee Reams II

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