The Internal Revenue Service recently released final
regulations, effective September 30, 2010, which control the
registration and regulation of tax return preparers. Under the new
regulations, all tax return preparers will be required to obtain a
preparer tax identification number (a "PTIN") prior to
filing any return due after December 31, 2010. Certain tax
preparers will also be required to take and pass a competency exam
and fulfill continuing education requirements.
Why Registration Requirements?
Any person, with or without any special training or license, can
prepare a federal tax return for any other person for compensation.
In 2009, the IRS conducted a comprehensive review of tax return
preparers, culminating in Publication 4832, Return Preparer
Review. Based on this review, the IRS estimated that there are
currently between 900,000 and 1.2 million paid tax return
preparers. Although a number of these preparers are attorneys,
certified public accountants
