IRS Supports Registered Tax Preparers
June 6, 2012 Taxation in USA
WASHINGTON D.C. – Registered Tax Return Preparers are an integral part of the US tax system, and the US Internal Revenue Service will continue to improve and support the tax preparer industry.
On May 5th, in an official note, the Internal Revenue Service (IRS) once again emphasized to the public the importance of using only Registered Tax Return Preparers (RTRP) and highlighted the professionals’ vital roles in the national tax system.
The new note marks the three year anniversary of the Return Preparer Review, which was launched on June 4th 2009 and was followed by extensive discussion and debate between tax authorities, the public and the taxation industry.
Currently the IRS estimates that there are 340 000 tax preparers operating in the USA, and there are also 260 tax preparer testing centers nationwide.
According to the IRS, up to now only 4 800 preparers have become Registered Tax Return Preparers, however, after 2014 only RTRPs and certified accounting and law professionals will be allowed to file individual income tax returns.
The Return Preparer Review resulted in greater control and oversight of the tax preparer industry, which, according to some estimates, is currently worth up to USD 300 billion per year.
Amongst the most important changes brought in by the Review was the mandatory registration for professional tax preparers in the USA.
Starting from November 2011, all RTRPs are obliged to sit regular competency tests, to continue their professional education, and to follow an Ethics Code and Tax Compliance Code.
Under the current regulations, information on all Registered Tax Return Preparers is included and available on a public database, which is maintained by the US IRS.
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