You may have heard some rumblings about new income tax return preparer requirements beginning in 2011. If you are paying someone to prepare your tax return for you, they will be required to have what's called a PTIN: which is a Preparer Tax Identification Number.
Why the changes? Historically, almost anyone with a calculator and a brain was able to prepare and sign income tax returns and receive compensation to do so. That's right, your hairdresser and postman have been able to prepare, sign, and receive compensation for the preparation of your income tax return. Let's just say the return preparer "industry" has been controlled in a less than ideal manner.
Beginning in 2011, all paid preparers are required to have a PTIN to identify themselves with the IRS. Additionally, anyone who is not a CPA, lawyer, enrolled agent (or anyone who works for those people) will be required to pass education requirements in order to continue to prepare returns.
My belief is that the primary goal of this endeavor is to protect taxpayers when they select persons to prepare their tax return. It has been estimated that it takes around 6.1 billion hours for everyone to comply with the internal revenue code each year. Let's remember, the IRS code is (at this moment) roughly 3.8 million words. Shouldn't you be sure your return preparer is qualified to prepare your return?
From the IRS, some tips on selecting a tax preparer: http://www.irs.gov/individuals/article/0,,id=133088,00.html
