| As time ticks closer to the beginning of new tax | | | | business. |
| preparer certification rules, many in the tax industry | | | | Now, think about how those added costs could affect |
| say it's a bad move for everyone. Critics say the | | | | regular citizens. Companies likely will not absorb all of |
| new tax preparer regulations will drive some | | | | the costs of tax preparer certification; they'll simply |
| companies out of business, while also making it tougher | | | | pass the costs onto consumers, making it more |
| for everyday tax-paying citizens. | | | | expensive for you to get tax help. |
| On September 1, 2010, the tax preparer registration | | | | Or, if small tax companies start to go out of business, it |
| process will begin, meaning that each tax preparer will | | | | will be harder for taxpayers to get tax help. It's |
| have to be approved by the IRS. By the spring of | | | | simple supply and demand; if there are fewer tax |
| 2011, each tax preparer will have to take competency | | | | preparers, there are fewer people to help you prepare |
| tests and enroll in continuing education classes. | | | | your taxes. Would you be able to do your taxes |
| Once the tax preparer certification process is | | | | without any help? |
| complete, each tax preparer must follow ethical rules | | | | - Tax preparer registration begins in September, |
| created by the Department of Treasury. | | | | and everyone must be registered by the 2011 tax |
| As would be expected, there will be tax preparer | | | | season. That means the IRS only has a few months |
| registration fees and other costs associated with this | | | | to certify more than a million tax preparers. What if |
| tax preparer certification process. It's those costs | | | | paperwork gets lost in the bureaucratic shuffle? A |
| that could be very damaging to the tax industry and | | | | tax preparer who registered on time may have to |
| taxpayers. Consider the following: | | | | miss a season's worth of business if his paperwork is |
| - Tax preparer registration is only good for three | | | | not reviewed in time. For most businesses, missing |
| years, and the fee to register ranges from $75-$300 | | | | out on an entire season would ruin them. |
| per tax preparer. That means tax preparation | | | | - The IRS has not released much information |
| companies will have to spend thousands of dollars just | | | | about what happens if people do not prepare with the |
| to get all of their employees registered. Then, there's | | | | new tax preparer regulations. According to the IRS, |
| the cost of the competency tests and continuing | | | | they will be on the lookout for people who are not |
| education classes. Think about how those costs | | | | complying with tax preparer certification rules, but they |
| could affect a small, local business. If they cannot | | | | have not said what the punishments will be. This has |
| afford to go through the tax preparer certification | | | | left many tax preparers afraid of the unknown. |
| process, they will have no choice but to go out of | | | | |