New requirements for tax preparers might thin the ranks

May 15, 2012 at 12:00a.m.

youngstown

As more-stringent standards including tests are coming into place for tax preparers, it’s possible some will leave the business, but those who remain should be better trained.

The Internal Revenue Service is requiring that all professional tax preparers pass a test as a way to ensure a basic level of competency. They all must take 15 hours per year in continuing training.

A number of people who file tax returns do it part time and may or may not decide the extra expenses are worth it, said Kevin Heater, owner of Smart Tax of Trumbull County.

In addition to the testing, there also are some other expenses required with keeping a preparer’s license, he said.

Certified public accountants and other financial professionals who work full time will be used to these types of requirements. The continuing training is not expensive, but it’s also not cheap, Heater said.

“One thing I’ve heard about are preparers who aren’t signing the form but still charging,” Heater said. “Anyone who is having their taxes filed professionally needs to make sure their preparer signs the form.”

Jenny Jenkins, spokeswoman for the IRS in Ohio, said there is some lag time before tax preparers must have taken the test to legally do tax preparations. Therefore, it might be too early to know if anyone is leaving the industry.

There might be some people preparing taxes who decide not to take the test and just continue as long as possible before leaving the industry, she said.

“Most tax preparers do a fine job. They are dedicated to quality tax-return preparation and are committed to quality service for their clients. But the actions of a few preparers can cause lots of problems — for their clients, for preparers who follow the rules and for the IRS,” said David R. Williams, Director of the IRS Return Preparer Office.

Efforts to increase the oversight of tax preparers began in 2010. Those who were registered prior to the new rules have until 2013 to pass the IRS competency test.

There also were a number of returns in the Mahoning Valley filed by volunteers who can help seniors or low-income families. In the three-county area, about 5,000 taxpayers were helped by volunteer tax preparers, Jenkins said.

All the tax preparers at these volunteer agencies are certified, she said.