Tax Preparer Standards
The Internal Revenue Service requires registration of all tax preparers and enforces standards of conduct. Adherence to IRS standards is required of anyone preparing a document affecting a substantial portion of a tax return or refund request.
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Certification
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Compensated tax return preparers are required to renew their preparer tax identification numbers (PTINs) annually and pay the associated user fee. Successful completion of a competency examination is required of tax preparers who are not attorneys, certified public accountants or IRS enrolled agents. The continuing education requirement for tax preparers is 15 hours per year. Courses consist of three hours of federal tax law updates, two hours of ethics, and 10 hours of general tax law.
Ethics Standards
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Tax preparers are required to conduct reasonable inquiry into taxpayer information that possibly understates income. Tax professionals are required to diligently examine tax information furnished by a client that appears incorrect, inconsistent or incomplete. Tax preparers cannot defend misrepresented income by merely having relied upon client information.
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Advice Standards
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The IRS requires uniform transparency in tax advice rendered by tax professionals. Written advice must not rely upon incorrect assumptions or representations. Advice in writing by tax professionals must disclose the possible existence of other relevant facts or important legal issues.
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References
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