Tax Preparer: Difference between revisions
Cpatechnut (talk | contribs) Did my best to clarify US vs world info, also cited exact legal code defining "tax preparer", added categories |
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{{Globalize|date=March 2010}} |
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'''Tax Preparer''' is a generic term that technically covers any professional that prepares tax returns. |
'''Tax Preparer''' is a generic term that technically covers any professional that prepares tax returns. |
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==Common Usage== |
==Common Usage== |
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==Tax Preparers and US Law== |
==Tax Preparers and US Law== |
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According to Treas. Reg. Sec. 1.6694-2, tax preparers are liable for return preparer penalties if errors are found "unless that person can prove a defense thereto." This law only covers Tax Return Errors, and does not cover penalties and criminal liabilities in regards to inclusion of fraudulent information on a filed return. |
US law (Section 7701(a)(36)(A)) defines Tax preparer as "any person who prepares for compensation, or who employs (or engages) one or more persons to prepare for compensation, other than for the person, all or a substantial portion of any return of tax under subtitle A of the Internal Revenue Code". According to Treas. Reg. Sec. 1.6694-2, tax preparers are liable for return preparer penalties if errors are found "unless that person can prove a defense thereto." This law only covers Tax Return Errors, and does not cover penalties and criminal liabilities in regards to inclusion of fraudulent information on a filed return. |
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The Internal Revenue Service is currently attempting to push through legislation to require testing and certification of tax preparers.<ref>http://www.usnews.com/articles/news/2010/02/09/irs-cracks-down-on-fraudulent-tax-preparers.html</ref> |
The Internal Revenue Service is currently attempting to push through legislation to require testing and certification of tax preparers.<ref>http://www.usnews.com/articles/news/2010/02/09/irs-cracks-down-on-fraudulent-tax-preparers.html</ref> |
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Revision as of 19:54, 26 March 2010
 | The examples and perspective in this article may not represent a worldwide view of the subject. (March 2010) |
Tax Preparer is a generic term that technically covers any professional that prepares tax returns.
Common Usage
Technically the term "Tax Preparer" can include Accountants, Certified Public Accountants, Hartered Accountants, Lawyers, and Enrolled Agents but in common vernacular these professionals usually refer to themselves by their accredited status. The term Tax Preparer in conversational English, therefore, is generally reserved for professionals that don't have any professional or educational accreditation. They can be either independent or employed by a larger tax preparation firm.
Tax Preparers and US Law
US law (Section 7701(a)(36)(A)) defines Tax preparer as "any person who prepares for compensation, or who employs (or engages) one or more persons to prepare for compensation, other than for the person, all or a substantial portion of any return of tax under subtitle A of the Internal Revenue Code". According to Treas. Reg. Sec. 1.6694-2, tax preparers are liable for return preparer penalties if errors are found "unless that person can prove a defense thereto." This law only covers Tax Return Errors, and does not cover penalties and criminal liabilities in regards to inclusion of fraudulent information on a filed return.
The Internal Revenue Service is currently attempting to push through legislation to require testing and certification of tax preparers.[1]
External links
- TaxAlmanac.com This definition of tax preparer is a little too technical for lay persons, but extremely accurate.
See also
Notes
