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Your Tax Preparer Should Prove She (or He) Has-a-Clue Before Preparing Your Tax Return
By Stacie Clifford Kitts, CPA
The Wandering Tax Pro (aka Robert D Flach) has a great post that you should check out. In After thoughts Part I, Robert sings the praises of the Vita program while addressing a prior post centered on whether tax preparers should be registered and licensed. I actually have some strong feelings about the topic, so I am going to jump right into it.
Here is a little background for those readers who may not be familiar with the debate: The IRS is seeking proposals on how to advance tax preparer performance by implementing consistent standards. You can read more about this over at The Business Perspective.
So on with my argument: I have picked up many returns where I wished that the preparer had been required to take a proficiency test prior to touching the tax forms.
Case in point, how about a partnership return (Form 1065) prepared by an attorney for a single member LLC. The client and the attorney were actually perplexed as to why the IRS was sending out “what the heck are you doing letters.”
Alternatively, how about the Enrolled Agent who filed a first year C Corporation return (Form 1120) for an LLC because she thought LLC meant Limited liability Corporation.
No kidding!
Yes, I have to say, I think it is a good idea to require tax preparers to prove their competency before they are allowed to charge a fee for the preparation of a tax return. Although I believe the proposed regulations are targeted more toward persons who are not CPAs, lawyers, or EA’s, it is obvious from what I have described that a proficiency test is needed for everyone preparing tax returns.
As a CPA, I am familiar with regulation, as I am required to keep my license up to date by taking 80 hours of continuing education every two years. I have no problem with taking a proficiency exam. If I am unable to pass it, well then I should not be preparing tax returns. The tax profession is not stagnate; laws are constantly changing. Just because someone could accurately prepare a return last year, does not mean he or she understands the rules this year.
And, for those prepares out there who are not familiar with the federal filing requirements of an LLC, here are some clues: Unless you elect to be taxed differently under the check the box rules by filing Form 8832 Entity Classification Election, owners of single member LLC’s file a schedule C along with their individual income tax return Form 1040. LLC’s with two or more member file a partnership return Form 1065.
A Tax Blog Throw Down – I Dished it Out – Now it Looks Like I Will Have to Take It.
By Stacie Clifford Kitts, CPA
Where to begin?
Until recently, I was happily posting little tidbits of tax stuff, mostly gleaned from the IRS’s tax tip releases and some original posts written when I could get time away from the tax practice.
Then an old friend, who is also a writer, publisher, editor, and internet-marketing expert, pointed out that I should use my blog posts to boost my internet presence and market myself online. [Frankly, I always thought people just stumbled onto blogs by accident or found you by some miracle. I really didn’t think much about it. However, that is another blog on another day.]
In addition to following some of her great tips, I also began looking for other tax blogs and quickly realized that there was a whole tax blogging community. They appeared to be a supportive group too, re-tweeting posts, linking to each other’s blog pages, writing flattering posts about each other, generally a very pleasant blogging experience.
That is, until I read a post by June Walker. Now, to be fair, June did not strike first. No, she was set off by a couple of bloggers, The Wondering Tax Pro, aka “Sammy Segar, CPA” and The Tax Lawyer’s Blog aka “Attila Attorney” to be specific. Each of these bloggers disagreed with her post, You Do Not Need a Business Checking Account.
Now, if you have ever thought that accountants were docile number crunchers, you were wrong, at least as it applies to Ms. Walker. You can check out her retaliation here.
In addition, as this saga drags on, it appears that I am soon to be the target of Ms. Walkers rants as I might have been a bit harsh in my comments to her retaliation post. I am not going to go into the whole thing here since you can click on the link and page down to my post. Mine starts “OMG -I can’t believe what I am reading. Is this how tax bloggers behave?”
Although I risk being the target of her mean spirited rants, I stand by my “chick think” statement. I believe some of her comments were snide, belittling, unprofessional, and unnecessary – In the same way a bunch of women might stand around the water cooler and gossip about the pretty girl in the office next door. . However, that’s just my opinion.
So here you go Ms. Walker, rip me apart. It certainly won’t take a genius to find flaws in my blog posts. I definitely need an editor. LOL. However, it will be interesting to see how many mistakes she was able to find in my comment posted on her blog…kind of like a Where’s Waldo exercise.
Oh…do I get a “composite figure?” How exciting. I cannot wait to find out. 🙂
Now off to take care of the important things in life, like putting my granddaughter to bed.
Oh and yes, that’s me and the grandbaby right after we finished this evenings bath.
Stacie's Tax Stuff 