Thursday, December 9, 2010
Under the proposed amendments to Circular 230 the definition of “Practitioner” is expanded to include a new category of “Registered Tax Return Preparers,” defined by reference to § 7701(a)(3) and Reg. § 301.7701-15. This new category of practitioners is estimated to include 900,000 to 1.2 million individuals.
We concur in the proposed amendments to sections 10.2, 10.3, 10.4, 10.5 and 10.6 of Circular 230 providing jurisdiction to OPR to determine the competency and suitability of a Registered Tax Return Preparer. We believe regulation of tax return preparers by OPR to be an essential and long overdue component of an effective national tax compliance program. We also strongly support an increased enforcement program which will include increased oversight of paid tax preparers. A core of competent and ethical paid preparers must be a part of any strategy to strengthen the integrity of the tax system.