Accounting News

Wednesday, November 23, 2011
IRS Certification in Full Swing

The IRS has sent out 21,000 letter to tax preparers that they have identified as having compliance problems. They plan to visit the offices of 2,100 tax preparers who have more serious compliance issues. They are being notified because of traits of the Schedules A,C or E they submitted last year according to the IRS.

As part of the compliance the annual competency test will begin next week. It is a 120 multiple-choice and true-false test. It is timed at two and a half hours. The cost is $116. The test can be take multiple times if you do not receive a passing grade. The test is not required for CPAs, EAs and attorneys because of their existing professional credentials. The same exemption is extended to tax preparers in firms with at least 80% ownership by CPAs, EAs and attorneys.