The tax preparation industry is saturated with fraudulent and inexperienced tax preparers. There are countless stories of tax preparers charging high prices while leaving client’s with immense fees and penalties, only to get out of Dodge avoiding any serious repercussions. The latter is especially an issue in low-income neighborhoods.
The risk of under qualified tax preparers is prevalent in every region around the United States. So why is this? Why are fraudulent and underqualified tax preparers so abundant throughout the country? Because Preparer Tax Identification Numbers (PTINs) are very easy to get. There is little bar for entry when it comes to PTINs leaving the door open for unsavory individuals to enter.
Tax professionals such as Tax Attorneys, CPAs and EAs are all required to pass rigorous testing to earn their certificates while also being required to take continuing education (CE) courses throughout the year. Joe Biden is looking to implement more regulations on tax preparers at the federal level in hopes of holding more tax preparers accountable while limiting underqualified or unfit preparers from preparing tax returns.
The terms of the regulations are still being decided upon. A post will be made once regulations are announced.
Here is an article that goes more in depth on the matter.
