Saturday, April 19, 2014

The big change for Income Tax businesses for next 2015 tax season...

OREM Client
Another tax season is over, we are all relief and glad it is finely over; and they are already new changes that will impact the business for the 2015.

To begin with there are several provisions and proposals attached to the 2015 budget.

What it is going to affect the tax preparation business is the “Correctable error” authority for the IRS.

People in this business know that the TPTIN was stuck down last year with the judgment waiting for appeal in the case of Loving vs. IRS in which 3 tax preparers sued successfully the IRS under the argument that the IRS doesn’t have the authority to regulate tax preparers.

In my opinion the whole argument is ridiculous and absurd, because how in the hell the IRS has authority to regulate the higher tax payers professionals like CPA’s, Lawyers, Enrolled Agents, etc. and then the IRS doesn’t have the authority to regulate the people that work under their supervision? In my opinion it is ridiculous and absurd.

I find it specially ridiculous an absurd after suffering the stress and tension associated with my 2012 year preparation and passing of the 3 tests to become an IRS Enrolled Agent to avoid the yearly PTIN test and a stroke.

This long waited proposal corrective error will clarify that the IRS has the explicit authority to regulate all tax preparers and effectively reverse Loving 2014-I USTC where the court of appeals for the district of Columbia circuit struck down the IRS registered tax return preparer RTRP program.

This proposal would be effective on or after the date of enactment.

So I think if you are a individual that works preparing taxes by yourself, from home and under no
supervision, then this will change your business unless you get the proper designations, or if you join a supervisory company.

Again in my opinion this proposal could make established accounting companies bigger and more competitive, and powerful in relation to small and individual tax preparers.