Vol. 24 I No. 5 I May 10-23, 2010
webcpa.com
IRS: Get ready to register
AP/ WIDE WORLD
IRS Commissioner
Shulman wants to know
who’s preparing returns.
The Internal Revenue Service has taken
its first step in a long-discussed project to
extend its oversight of tax return preparers
by issuing proposed regulations requiring
them to register with the agency.
The IRS Return Preparer Review — a
study of the tax prep industry that was announced in July 2009 and completed in
December — has generated proposed regulations requiring tax preparers to register
for Preparer Tax Identification Numbers
to identify themselves on all tax returns
and tax refund claims that they prepare.
At press time the comment period for the
proposal was still open, but was due to
close in late April. PTIN registration will
be effective for three-year periods and require renewal every three years.
“These regulations allow the IRS to better identify and match tax return preparers with the tax forms and claims they
prepare,” said IRS Commissioner Doug
Shulman. “This proposed PTIN system
will help us ensure taxpayers receive
competent, ethical service from qualified
professionals and strengthen the integrity
of our tax system.”
BY ROGER RUSSELL
Proposed regs require all preparers to sign up for a PTIN
The review recommendations, under
which the IRS will require registration,
testing and continuing education of tax
preparers, have generally been met with
praise from most industry stakeholders.
CPAs, attorneys and enrolled agents will
be exempted from the testing and continuing education requirements, but still
must register and obtain a PTIN.
“We fully support the commissioner’s
goals of raising the professional ethics
standards of the preparer community,”
said Benson Goldstein, senior technical
manager of taxation at the American In-
stitute of CPAs. “And we support the con-
cept of a uniform identification number
for each preparer, and making newly reg-
istered PTIN holders subject to Circular
230. We think the PTIN process will enable
the IRS to better track preparers and help
identify those who have a pattern of abuse
or negligence in preparation.”
“The goal is to open the registration
process for the PTIN by September 1 this
year,” said Goldstein. “The next goal is to
have an examination out by April or May
See REGISTER on 44
Panel looks to improve GAAP for private companies
A blue ribbon panel looking to improve
the accounting standards for private companies wants to find out why so many are
not strictly complying with GAAP.
The 18-member panel, sponsored by the
American Institute of CPAs, the Financial
Accounting Foundation and the National
Association of State Boards of Accountancy,
recently held its inaugural meeting at the
AICPA’s offices in New York.
“The question at the end of the day that
BY MICHAEL COHN / NEW YORK
we have to address is whether or not the
process is giving the right answers for pri-
vate companies, and if the answer is no, then
what would be a better solution to get to the
better answer?” said Moss Adams chairman
and CEO Rick Anderson, who is chairing the
panel. “That’s what this is about.”
Judy O’Dell, who chairs the joint AICPA-
FASB Private Company Financial Reporting
Committee, noted that previous studies and
task forces had identified a need for GAAP
of some variety, but not necessarily a strict
form of it. “Users of private company finan-
cial reports want GAAP,” she said. “They see
that as the Good Housekeeping Seal of Ap-
proval. The auditors and accountants’ report
says, ‘Prepared in accordance with GAAP.’
The users don’t necessarily always care what
GAAP is. They just want the words ‘GAAP’ on
those financial statements.”
O’Dell said that her committee has suc-
ceeded in getting some disclosure relief for
uncertain tax positions in FIN 48, and extra
guidance for nonprofits and passthrough
entities, “but not a lot of traction on the
other standards.” The move to International
Financial Reporting Standards has also led
to anxiety among private companies.
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