New IRS Rules for Tax Preparers Spur Questions

The Bond Buyer reports:

Municipal market participants have many questions about new rules adopted by the Internal Revenue Service that require paid tax preparers to register with it, possibly take competency tests, and pay penalties for improper filings.

Beginning Jan. 1, 2011, all paid tax preparers will have to register with the IRS and obtain a preparer tax identification number, or PTIN, under final tax rules released last month. Preparers can register online through the IRS’s website.

“Getting a new, industry-wide registration system in place is essential to our efforts to improve the standards and oversight of tax return preparation,” IRS commissioner Doug Shulman said in a statement announcing the online registration system.

“These efforts are essential to the future of the nation’s tax system. This will create higher standards for the tax-preparation community and ensure quality service for taxpayers.”

Raising the costs of get your taxes done.