ACC Future of Tax Question 2

User Generated


Business Finance

Question Description

What is the current information that the IRS is publishing for tax professionals. How does this impact the future of tax?

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Explanation & Answer

Some of the current information published by the IRS includes new limits on direct deposit of tax returns as well as allowing some suspended or disbarred tax practitioners to prepare tax returns. 

The new limits on direct deposit of tax returns helps prevent unscrupulous preparers who would take a portion of the tax return. This will limit those services who improperly claim credits to receive a bigger payoff or otherwise work on a "contingent fee" basis. This also addresses the impact of false returns; only 3 refunds can be deposited per account. The 4th will be sent by a paper check, so one person cannot receive unlimited tax refunds.  

The "reinstatement" of tax professionals is based only on those sanctioned by the IRS under Circular 230, not by the court system. The IRS  is prohibited from "administering regulations requiring return preparers to pass a competency tests and complete annual continuing education before obtaining or renewing PTINs." This was a major issue by the AICPA because it had been seen as a direct attack on CPA licensure and undermining the accounting professional regulation. The court decision limits the IRS power, and shows the importance of the AICPA. 

Xryfrl R (139)
New York University

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