tag:blogger.com,1999:blog-6318055043707993918.post8584650171404997421..comments2024-02-20T02:12:18.090-05:00Comments on THE WANDERING TAX PRO: WE AGREE TO DISAGREERobert D Flachhttp://www.blogger.com/profile/06034127763662917220noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6318055043707993918.post-33120361839683781672009-08-18T15:26:44.809-04:002009-08-18T15:26:44.809-04:00My reply got too long for the comments, so I'v...My reply got too long for the comments, so I've posted it here:<br />http://bedbuffalos.blogspot.com/2009/08/regulating-tax-preparers.htmlMaryhttp://bedbuffalos.blogspot.com/2009/08/regulating-tax-preparers.htmlnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-78910435777458240182009-08-18T09:05:42.760-04:002009-08-18T09:05:42.760-04:00Mary-
(1) Making all tax preparers take an annual...Mary-<br /><br />(1) Making all tax preparers take an annual, or even semi-annual (if re-registration is every two years) proficiency test to maintain their “license” is ridiculous and excessive. No other similar federal financial “credential” requires annual testing. <br /><br />(2) What good is an open book, or “open software”, test as proof of competence? All is proves is that one knows where to look in the book. I agree that a tax preparer does not have to memorize the Tax Code to be competent, and part of one’s competency is knowing where to look for information (and we all rely heavily on workbooks like QUICKFINDER HANDBOOK during the season) - but if the test is going to be open book why bother. If EAs do not have an open book test for the enrollment exam then neither should LTPs.<br /><br />(3) Just because I have the knowledge, training and experience to pass a proficiency test does not mean that I should embrace with open arms the financial and other inconveniences of having to study for and take one. After 38 years of continued unblemished practice I do not intend to “start from scratch” and prove that I know what I have been doing for almost 4 decades. <br /><br />(4) I still think that it would be literally impossible to properly register and test over 1 Million tax preparers (I include CPAs and attorneys who want to prepare 1040s) in the period of May 1 through November 15 (the only true opportunity to properly conduct registration and licensure) of the first year such legislation takes place. Even if the test is administered by an outside contractor the IRS OPR still has to process the results as part of the licensure process.<br /><br />(5) If registration and licensure of all tax preparers is to be successful it will require the support and cooperation of all tax professionals. Excessive testing requirements and invasive background checks do not inspire cooperation. I will gladly support and cooperate with the process as long as there is a “grandfather” procedure and all individuals who want to prepare 1040s for a fee (CPAs and attorneys included) are included in the testing (unless grandfathered) and CPE requirements. <br /><br />As with Kevin, I guess we must just agree to disagree.<br /><br />TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-28013046966142127052009-08-17T16:58:08.092-04:002009-08-17T16:58:08.092-04:00I still don't get why you object so strenuousl...I still don't get why you object so strenuously to a test. <br /><br />VITA volunteers have to take tests every year--it's not perfect, and the test could certainly be improved, but it's not that big of a deal. Why don't you try the VITA test yourself--it's available on-line. <br /><br />I bet you could pass it without difficulty. It is open book, and I'd recommend that you get a copy of Pub 4012, the VITA volunteer reference book, on-line. It's not designed to determine whether you've memorized every detail of tax law, but whether you know when and where to look things up in that manual. (There is usually a question or two that will require you to look something up in the Pub 4012, i.e., a question of the form, in what tab of Pub 4012 will you find the rules about XXX.) But other than that, I bet you would have no trouble with the exam just from your current knowledge base.<br /><br />As I said, it's not a perfect exam (no exam is) and there's certainly plenty of room for improvement, but it does at least screen out many people who should not be doing returns, and it provides all of us an incentive to study up on the new tax law each year.<br /><br />Although preparers are allowed to use professional return prep software when they take the exam, you'll be happy to know that I don't. I actually enjoy the challenge of taking the exam without the software, and I take it even before the software is available.<br /><br />Personally, I'd much rather take a test each and every year (which I can prepare for in a flexible way by self-studying) rather than sit through a lot of classes, entertaining or otherwise. <br /><br />Yes, obviously there would have to be more test security because the incentives for dishonesty would be greater for paid preparers than for volunteers, but I agree that the IRS can outsource the testing--there are private sector firms that already give reasonably secure tests for a variety of certification purposes.<br /><br />If I need to send one of our clients to a tax pro, because his situation is too complicated for VITA, I'd much rather know that he has passed a current year certification exam than just find out that he had scanned in his bar-coded ID card to prove "attendance" at CPE.Maryhttp://bedbuffalos.blogspot.com/noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-10726862253988128972009-08-17T12:01:39.830-04:002009-08-17T12:01:39.830-04:00WOW - I always thought it was just my communicatio...WOW - I always thought it was just my communications that were this way.<br /><br />You have an editor?Brucehttp://lrtaxprep.com/blognoreply@blogger.com