“. . . and here, we, go. . .”

Posted by on Mar 25, 2010 in Preparer regulations | 0 comments

The first of many new costs to paid preparers is coming. When I return to the blogging world on a regular basis, I will be covering this more, a great deal more. For now, know that it begins. . . 

My peers and friends in the “field” say there won’t be that much extra cost, I say there will be enough cost to the preparer that this will undoubtedly raise preparer charges thus raising the cost to taxpayers who use paid preparers, we shall see.

Honestly, I hope I am wrong.

Please see highlighted section of the below IRS news wire.

IRS Provides Guidance on Identifying Numbers for Tax Return Preparers 

WASHINGTON — The Internal Revenue Service today issued proposed regulations allowing the IRS to require that tax return preparers use Preparer Tax Identification Numbers (PTINs) as the preparer’s identifying number on all tax returns and tax refund claims that they prepare. These regulations when final will implement some of the recommendations in Publication 4832, Return Preparer Review.

“These regulations allow the IRS to better identify and match tax return preparers with the tax forms and claims they prepare.  This proposed PTIN system will help us ensure taxpayers receive competent, ethical service from qualified professionals and strengthen the integrity of our tax system,” said IRS Commissioner Doug Shulman.

 
Under the proposed regulations, the IRS will issue forms, instructions, or other guidance that will require paid tax return preparers to begin using PTINs for all tax returns and refund claims filed after Dec. 31, 2010.  Currently, tax return preparers must use either a PTIN or their social security number on tax returns or refund claims that they prepare.

The proposed regulations also provide that tax return preparers must apply for a PTIN, regularly renew the PTIN, and pay associated user fees, which will be described in upcoming guidance.  As part of the process, some tax return preparers would also be subject to a tax compliance check, which could include a review of the preparer’s history of compliance with personal and business tax filing and payment obligations. 

Tax professionals and other interested parties have until April 26, 2010 to submit comments regarding the attached proposed regulations.

The IRS plans to launch a new system later this year through which all tax return preparers will be required to register, including those who already have a PTIN.  Tax return preparers who already have a PTIN will have the number revalidated and reassigned to them through the new system, while tax return preparers who do not have a PTIN will be issued one through the new system.

It is estimated that there are as many as 1.2 million paid tax return preparers. 

 

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Test Your Faxing IQ this Tax Season

Posted by on Mar 5, 2010 in History, Information, Things forgotten | 0 comments

Like quizes? humm. How about a quest post desigened like a quiz?

By Steve Adams 

            Before email and filing tax returns online, there was the fax. At one time it was THE way to transmit important documents (such as W-2 statements and real estate tax information) quickly from one location to another.

            While it’s normal to think that faxing has gone the way of the typewriter, it’s still a big part of the accounting world, and even the preferred method of document transfer in some cases.

            So to make sure you have the most current information – and a good store of knowledge should you appear as a contestant on Jeopardy! and the Daily Double is a fax-related question – we offer the following quiz.

Fax Quiz

 Q1. Faxing was invented in:

  1.  
    1. 1843
    2. 1945
    3. 1972
    4. 1984

 

  1. The correct answer is A. 1843—almost 20 years before the first Federal income tax was levied. The technology didn’t really become common in offices until the mid-1980s, but the basic concept was patented more than 150 years prior by Alexander Bain.

 

Q2.  The amount of money spent on faxing the last few years has:

  1.  
    1. Increased
    2. Decreased
    3. Remained the same

 

  1. If you guessed B you’d be in good company. But you’d be wrong. The truth is the dollar volume spent on faxing has grown steadily over the last few years, and is projected to continue doing so.

 

Q3. Privacy laws allow you to send documents with a client’s Social Security Number on them by either email or fax:

  1.  
    1. True
    2. False

 

  1. False, with a caveat. Social Security Number protection laws vary from state-to-state, but it is illegal in at least some states to transmit a document that contains an SSN via standard email because it is considered too insecure, i.e. email can be intercepted or misdirected too easily. Even if the law allows the use of email, though, it goes against the industry’s best practices for the same reasons. Faxes are immune to this type of interception by the nature of how they are transmitted. Internet fax services that provide 128-bit encryption provide an additional level of security.

 

Q4. The number of trees that could be saved each year by delivering just one percent (1%) of paper faxes in America as electronic documents is:

  1.  
    1. 15 million
    2. 27.2 million
    3. 52.5 million
    4. 73.5 million

 

  1. It is 73.5 million. That’s just one percent in one country. In addition, moving from fax machines to an Internet fax service would save energy and cut down on the waste stream by eliminating the need to dispose of the machine, toner containers and wasted paper.

 

Q5. Some advantages of an Internet fax service over a fax machine are:

  1.  
    1. No need to go back to the office to read your faxes
    2. Internet fax accounts never have busy signals on inbound faxes
    3. Because they’re electronic, your faxes can travel with you more easily
    4. Only A and C
    5. All of the above

 

  1. All of the above. Since Internet fax services are tied to your email account, you can receive faxes anywhere you can get email. That also means you can store your faxes on your laptop.

 

So how did you score? 4-5 correct: You are a faxing genius! 2-3 correct: You’re smarter than the average bear when it comes to faxes. 0-1 correct: Your old VCR is probably still flashing 12:00.

 

Steve Adams is vice president of marketing for Protus (www.protus.com), a provider of communications tools for small-to-medium-businesses and enterprise organizations, including the MyFax internet fax service; my1voice, a virtual phone service.

 He can be reached at sadams@protus.com.

 

Thanks for the post Steve.

 

If you have a post that you think should be written for the “Taxing Public”, please send it my way, I will do my best to get it out.

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