Who is an unenrolled return preparer

Your email address will not be published. Return preparers who are active registrants of: Oregon Board of Tax Practitioners. Tax preparers who passed the Special Enrollment Exam part 1 within the past two years. This site uses cookies to store information on your computer. Some are essential to make our site work; others help us improve the user experience.

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They are also permitted limited representation rights, meaning they can represent clients whose returns they prepared and signed before the IRS during an audit, a right that was previously available to any unenrolled tax preparer. A nonsigning tax return preparer is any tax return preparer who is not a signing tax return preparer but who prepares all or a substantial portion of a return or claim for refund within the meaning of paragraph b 3 of this section with respect to events that have occurred at the time the advice is rendered.

In determining whether an individual is a nonsigning tax return preparer , time spent on advice that is given after events have occurred that represents less than 5 percent of the aggregate time incurred by such individual with respect to the position s giving rise to the understatement shall not be taken into account. Notwithstanding the preceding sentence, time spent on advice before the events have occurred will be taken into account if all facts and circumstances show that the position s giving rise to the understatement is primarily attributable to the advice, the advice was substantially given before events occurred primarily to avoid treating the person giving the advice as a tax return preparer , and the advice given before events occurred was confirmed after events had occurred for purposes of preparing a tax return.

Examples of nonsigning tax return preparers are tax return preparers who provide advice written or oral to a taxpayer or to another tax return preparer when that advice leads to a position or entry that constitutes a substantial portion of the return within the meaning of paragraph b 3 of this section.

The provisions of this paragraph b 2 are illustrated by the following examples:. A person who renders tax advice on a position that is directly relevant to the determination of the existence, characterization, or amount of an entry on a return or claim for refund will be regarded as having prepared that entry.

Whether a schedule, entry, or other portion of a return or claim for refund is a substantial portion is determined based upon whether the person knows or reasonably should know that the tax attributable to the schedule, entry, or other portion of a return or claim for refund is a substantial portion of the tax required to be shown on the return or claim for refund.

A single tax entry may constitute a substantial portion of the tax required to be shown on a return. Factors to consider in determining whether a schedule, entry, or other portion of a return or claim for refund is a substantial portion include but are not limited to -.

A the size and complexity of the item relative to the taxpayer 's gross income ; and. B the size of the understatement attributable to the item compared to the taxpayer 's reported tax liability. A For purposes of applying the rules of paragraph b 3 i of this section to a nonsigning tax return preparer within the meaning of paragraph b 2 of this section only, the schedule or other portion is not considered to be a substantial portion if the schedule, entry, or other portion of the return or claim for refund involves amounts of gross income , amounts of deductions, or amounts on the basis of which credits are determined that are -.

B If more than one schedule, entry or other portion is involved, all schedules, entries or other portions shall be aggregated in applying the de minimis rule in paragraph b 3 ii A of this section. C The de minimis rule in paragraph b 3 ii A of this section shall not apply to a signing tax return preparer within the meaning of paragraph b 1 of this section. Practitioners who are suspended or disbarred are not allowed to represent taxpayers before the IRS during the period of suspension or disbarment.

Practitioners may seek reinstatement from the Office of Professional Responsibility at the earlier of the suspension period or after 5 years of disbarment. He monitors legislative and regulatory activity, serves as a government liaison, circulates information to employees and customers, analyzes and tests software, trains employees and customers, and serves as a public relations representative. Search the Tax Pro Center Latest tax and accounting news and tips.

How it Works The Office of Professional Responsibility is responsible for issues related to practitioner conduct, disciplinary proceedings and sanctions, while the Return Preparer Office is responsible for matters related to PTINs, applications for enrollment, and administering competency testing and continuing education for certain groups.

Representing a taxpayer at conferences, hearings or meetings with the IRS. Preparing, filing or submitting documents and tax returns with the IRS on behalf of a taxpayer.