Archives for September 2010

New Tax Preparer Regulations

As part of a widespread initiative to better regulate the preparation of federal tax returns, the IRS has introduced new requirements for those who prepare tax returns for compensation.  Beginning in January 2011, any person who prepares the majority of a tax return for another person in return for payment must apply online with the IRS for a Preparer Tax Identification Number (PTIN).  Additionally, some individuals will be expected to receive continuing education credits and undergo testing, as … [Read more...]

IRS Debt Indicator Decision

Another significant change for the upcoming tax season was announced by the IRS just a few days ago.  Banks and professional tax preparers who offer Refund Anticipation Loans (RALs) and Refund Anticipation Checks (RACs) will no longer have access to a tool called the debt indicator, which the IRS describes as “an indication of whether an individual taxpayer will have any portion of the refund offset for delinquent tax or other debts, such as unpaid child support or delinquent federally funded … [Read more...]

New 1099 Process

While many business owners have been following the recent debate surrounding healthcare, they probably were not looking for tax law revisions.  However, the Patient Protection and Affordable Health Care Act includes just that: an amendment to current tax law that will greatly affect the amount and type of paperwork all businesses will have to keep up with. Section 9006 of the recently introduced bill states that beginning in January 2012, the purchase of services and tangible goods in excess of … [Read more...]