The Issue Of Tax Preparers

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INTRODUCTION The number of tax preparers is increasing. According to the U.S. News & World Report, there are more tax preparers (1,200,000) than firefighters (310,400) and police combined (765,000) (Flock, 2012). Enrolled agents, CPAs, attorneys, PTIN holders, and Annual Filing Season Program Participants make up those tax preparers who are registered with the IRS. There is another group of tax preparers, but they are not registered with the IRS, this group is known as the unregistered tax preparers. What makes these unregistered tax preparers different from those who are registered? The unregistered tax preparers have less rules restricting them. This lack of regulation allows some of these tax preparers to take advantage of certain…show more content…
Still, one can say that any person has the ability to fill out, sign, and file their own taxes, but it takes more responsibility to do it for others, especially if you can become liable for any problems that arise. Saying you are a tax preparer is not just about filing taxes and getting paid, saying you are a tax preparer gives others a sense that they can trust you because you are a “tax preparer.” This is the exact reason why so many taxpayers fall into the trap of the abusive tax preparer. Some taxpayers become blinded by the fact that, “if he says he is a tax preparer and he says he will help me get a bigger refund, I trust he knows what he is doing,” and do not realize it may be a scam. Clearly, not all tax preparers are scammers, but those who are take advantage of the good reputation of those who are not, just to receive all the benefits of those tax preparers who are honest in their work. In the next section we will discuss all the requirements to become a tax preparer, but one of the main requirements that should become a tax preparer’s biggest responsibility is, registering with the IRS by obtaining a preparer tax identification number (PTIN). By obtaining this number, you can show the IRS that you have nothing to hide, and are doing your job ethically. On the contrary, those that do not obtain this number are called unregistered tax preparers and are deemed more likely to take advantage of taxpayers because they are not monitored by anyone. HOW TO
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