Monday, February 04, 2013

The IRS Won't Give Up

The IRS has issued the following news release. Regardless of what the court has decided, they are determined to continue doing what they've been told they can't do.

On Friday, Jan. 18, 2013, the United States District Court for the District of Columbia enjoined the Internal Revenue Service from enforcing the regulatory requirements for registered tax return preparers. In accordance with this order, tax return preparers covered by this program are not required to complete competency testing or secure continuing education. The ruling does not affect the regulatory practice requirements for CPAs, attorneys, enrolled agents, enrolled retirement plan agents or enrolled actuaries.

On Friday, Feb. 1, the court modified its order to clarify that the order does not affect the requirement for all paid tax return preparers to obtain a preparer tax identification number (PTIN). Consistent with this modification, the IRS has reopened the online PTIN system.

The IRS continues to have confidence in the scope of its authority to administer this program and is working with the Department of Justice to address all options, including a planned appeal.

Friday, February 01, 2013

And Now for Something Completely Different

Recent funny notes from Forbes magazine's Buy / Sell  / Hold column:

Sell: Jeffrey Loria. Fleeces Miami taxpayers, unloads high-priced talent for peanuts. He's like George Steinbrenner without the warmth and charm.

Sell: John McAfee, founder of pioneer anti-virus program of the same name, on the lam in Belize, suspected of murder.

Sell: Sarah Lawrence College now the priciest in the nation, at $60,000 per year. A new Ferrari or a degree in transgender semiotics? Choices, choices.

Buy: US forecast to be top oil producing nation by 2020. Chastened Saudis vow to build a world-class reality-TV industry.

Hold: Steven Sinofsky; software honcho leaves Microsoft. Exit unnoticed by staffers trying to get Windows 8 to run.

IRS Preparer Registration Issues

Here is a link to a story outlining the current legal mess concerning the IRS attempt to license and regulate tax preparers:

http://www.accountingtoday.com/news/Congressman-IRS-Explain-Contradictory-Tax-Preparer-Regulation-Guidance-65565-1.html?ET=webcpa:e6649:131142a:&st=email

The quick summary: the IRS has been forcing preparers to register with this program for two years, and the Courts have now said it's illegal.

Thursday, January 31, 2013

Further 2012 Filing Delays

The IRS announced today a further delay in processing returns that contain Form 8863, Education Credits, which must be filed by people claiming the American opportunity and the lifetime learning tax credits.


During testing, the IRS discovered that programming modifications must be made before the form can be processed correctly so returns that include the form cannot be filed until mid-February.

The IRS also noted that its website contains a list of 30 other forms, including the deprecation form used by most small business owners and real estate investors, that cannot be filed yet because the forms must be updated and systems for processing them tested.

A date will be announced when returns containing these forms will be accepted, but that date will probably be late February or sometime in March.