IRS Panel Wants To License Preparers

The IRS has been called on to develop federal licensing requirements for all paid tax return preparers to help taxpayers to identify and select tax professionals based on their level of expertise. The proposal was recently placed on the table by the IRS's Taxpayer Advocacy Panel, which warned that the present unregulated tax preparation systen contributes to faulty tax filings
The TAP plan, outlined in an appendix to the group's freshly released annual report to the IRS calls for the Service to issue licenses to paid tax preparers based on each practitioner's level and area of experience, The group further recommended that licensed tax preparers undergo a mandatory background check to ensure protection of the taxpayer, especially with respect to identity theft issues

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