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In the wake of judge's decision last month, the Internal Revenue Service has backed off on its plans to mandate competency standards for tax preparers. Some in the industry would have accepted the legislation. Others are glad to see it overturned. But, without help from the federal tax service, what can taxpayers do to ensure that they are hiring a trustworthy and competent tax preparer? Source of article: 5000 installment loan to pay back over time
Competency exam requirement
The IRS planned on starting a rue next year requiring that any tax preparers who were not CPAs or lawyer would be required to take a competency exam and yearly evaluations if they are going to remain licensed. This plan was then taken to court where United States District Judge James Boasberg ruled that the Internal Revenue Service overstepped its bounds and cannot enforce such a rule.
Some preparers not good enough
When it comes to taxes, there is already a ridiculous about of fraud and incompetency. Many people were excited to hopefully get the regulation.
Nick Rizzi, CEO of New York-based Smart Tax, said, "We were really looking forward to this program. We've had to mop up the mess of so many unqualified tax preparers over the years, it's not funny." Rizzi continued. "There's so much fraud out there. It's like the wild west when anyone can put out a shingle and say they do returns. We need the new rules to keep some sort of professionalism in the industry."
Get the best preparer possible
It is possible for an appeal to go through, but you need to know how you can pick a preparer before that time.
Certified tax preparers can give you their Preparer Tax Identification Number if they really are certified. You can ask this if your preparer while you find out if they are taking any classes to keep up with the tax code. You should also find out if they belong to any professional organizations.
If you got the Preparer Tax Identification Number, you can look up the qualifications. You can get background info through state bar associations and check the BBB for a reputation.
Beware of any would-be tax preparer who promises to get you more back than any other tax pro working out there, or if they promise sizable upfront refunds. They are likely fraudsters, yanking your chain. Another red flag is if they want to be paid a percentage of your refund in lieu of a set fee.
Prepare for the worst
You should always ask a lot of questions if you do not understand. Never sign it until you understand anything that was done. The preparer should ask you a ton of questions too, so be wary if they are not asking questions.
Sources
Washington Post
KSL
NBC News
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