Discussion:Tax Preparation Business Advice
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Discussion Forum Index --> Tax Questions --> Tax Preparation Business Advice
| 3 January 2008 | |
| I have been operating a very small bookkeeping tax return preparation business out of my home for the past 20 years. I file my business on Schedule C. I have an inactive CPA license from the state I lived in over 20 years ago. I do not operate under a CPA title or use it in anyway, as I shouldn't being inactive and all. I am not required by CA to do any continuing education etc. to keep it in the inactive state. I do however attend yearly state and federal update seminars. I have been approved by the IRS for years to participate as an Authorized IRS E-file provider. I have always told clients that I could help them with any IRS issues but could not represent them before the IRS. In 20 years I have never had the need to do anything but help gather documents and information to substantiate a line item in question. Here are my concerns, and you may pose others:
- IRS Circular 230 seems to say that "Practice before the IRS" includes preparing and filing documents. As such it seems I should be either an attorney, CPA, enrolled agent, or and enrolled actuary. It would seem, the inactive license wouldn't qualify. Is it possible I should be taking steps to become an Enrolled agent? Do you see the possible problem here? - I also am concerned about PSC being a required form of business for bookkeepers. Is this the case too? I would really appreciate any guidence possible. I have the fear that the 200+ very basic tax returns I file yearly could have been done without the proper authority to do so. Thanks, Michael | |
Donniecastleman (talk|edits) said: | 3 January 2008 |
| If you needed "proper authority", then HRBlock would have closed its doors years ago. You just need the Enrolled Agent's or CPA to be able to go above and beyond basic tax preparation and filing, the way I see it anyway. Don't get ready to throw your tax biz away out of fear, it's unmerited. | |
| 3 January 2008 | |
| As an unenrolled preparer, you do have the right of limited "practice" at the examination level. Publication 470 might be helpful. | |
| 3 January 2008 | |
| unenrolled i think can only represent returns they prepared. | |
Donniecastleman (talk|edits) said: | 3 January 2008 |
| yeppers hadlin! | |
Death&Taxes (talk|edits) said: | 3 January 2008 |
| And they can go no higher than meeting with a group manager at audit level.
Become an Enrolled Agent; with 20 years experience, you should be able to pass with not that much study. I had 13-14 years experience when my employer signed me up to take the exam and then let me know on short notice. I was lucky and passed, and passed it again ten years later without taking a review. In the meantime, network with someone who has the credentials. | |
