| There are three types of tax preparers: The | | | | continuing education requirements for paid tax |
| competent, the incompetent and the | | | | preparers who are not an attorney, CPA or EA. |
| unscrupulous. The reason? Except for | | | | Hiring the wrong tax preparer could result in |
| California, New York and Oregon there are no | | | | penalties, missed deductions and no protection |
| standardized requirements for paid tax preparers. | | | | against mistakes or fraud. In the eyes of the |
| In California, tax preparers who are not a licensed | | | | IRS, it is the taxpayer, not the tax preparer, who |
| attorney, certified public accountant (CPA) or IRS | | | | is responsible for the information listed on the tax |
| enrolled agent (EA), are required by law to | | | | return, no matter if the information is accurate or |
| register with the California Tax Education Council | | | | fraudulent. |
| (CTEC). All CTEC-registered tax preparers | | | | Below are the top ten questions to ask tax |
| (CRTPs) must complete tax education courses | | | | preparers (A qualified tax preparer should be able |
| each year and obtain a surety bond before they | | | | to answer “yes” to all ten questions.): |
| can prepare tax returns for a fee. | | | | 1. Will you sign my tax return? |
| In Oregon, tax preparers must be licensed | | | | 2. Do you have a written privacy policy? Can I |
| through the Oregon State Board of Tax | | | | get a copy of it? |
| Practitioners. Oregon tax preparers are required | | | | 3. Do you have proof of a tax preparer bond |
| to pass a competency exam before they can | | | | (Required for CRTPs) and/or errors and omissions |
| prepare tax returns professionally. | | | | insurance (Optional for tax preparers)? If not, |
| In 2009, New York passed legislation to mandate | | | | what protections will you offer me and can I get |
| that its tax preparers register with the state; | | | | it in writing? |
| however, proof of education on tax laws is not | | | | 4. If a situation should arise with the IRS, will you |
| required. Maryland is also working to implement | | | | stand by your work? |
| legislation it passed in 2008 to require state | | | | 5. Do you take continuing education courses on |
| licenses for tax preparers. | | | | tax laws? Can you provide proof? |
| Consumers in other states should be extremely | | | | 6. Can you provide me with a list of references I |
| careful when choosing a tax preparer. There is | | | | can contact about your work? |
| no oversight for tax preparers who are not an | | | | 7. Will you be available after April 15th? |
| attorney, CPA or EA, which means the training, | | | | 8. Have you ever prepared a tax return dealing |
| education and ethical standards these tax | | | | with my situation? |
| preparers go by are set at their own discretion. | | | | 9. Will you provide me with a copy of my |
| Requiring tax preparer oversight on a national | | | | completed tax return? |
| scale is an issue the IRS says needs to be | | | | 10. Will you go over the finished tax return with |
| addressed. On January 4, 2010, the IRS issued a | | | | me? |
| proposal to set new registration, testing and | | | | |