From our friends at NCCPAP...
June 26, 2019—The National Conference of CPA Practitioners (NCCPAP) announces its support of Bill H.R.3330 introduced by Congressman Jimmy Panetta (D-CA) and Congressman Ted Yoho (R-FL) on June 18, 2019. This legislation allows the Internal Revenue Service (IRS) to require minimum standards for paid tax preparers. Senate Finance Committee Ranking Member Ron Wyden (D-OR) and Senator Ben Cardin (D-MD) have introduced a companion bill, S. 1192, in the Senate, which NCCPAP also supports.
According to Neil H. Fishman, CPA, CFE, FCPA, CAMS and National President, NCCPAP, "We consider this to be important legislation because there are many tax preparers who are neither licensed nor regulated by any government authority, state or federal. These individuals lack the requirement to keep up with changes in tax laws and the knowledge to put tax legislation to work for the taxpayer's advantage. CPAs, attorneys, and enrolled agents are all regulated—either by the IRS, State Boards, or a Department of Education. If CPAs, attorneys, or enrolled agents were to commit egregious acts, taxpayers can file a complaint with these regulatory bodies who can then impose disciplinary actions. For those not credentialed as such, there is no redress for the taxpayer."
To summarize, Bill H.R. 3330:
As an advocate for both tax practitioners and taxpayers, NCCPAP supports this bill because the absence of standards leaves many taxpayers vulnerable.
- Restores the ability of Treasury and the IRS to set federal standards of tax practice for all paid return preparers.
- Requires that certain preparers meet the following minimum competency requirements:
- Obtaining a preparer tax identification number (PTIN);
- Satisfying any examination and annual continuing education requirements;
- Completing a background check.
- Clarifies that Treasury has authority to:
- Require preparers to provide PTINs on returns (but except persons preparing return under supervision of a preparer who signs the return)
- Rescind PTINs if a preparer is shown to be incompetent or disreputable (subject to notice and an opportunity for a proceeding).
- Requires a GAO study on the sharing of information between the Treasury Department and State authorities regarding PTINs issued to paid return preparers and preparer minimum standards.
For more information, contact Neil H. Fishman, CPA, CFE, FCPA, CAMS; President, NCCPAP.