For Immediate Release
Richmond, VA – June 26, 2012 – Charles E. McCabe, CEO of Richmond-based The Income Tax School, noted the new IRS Regulation of Tax Preparers that became effective January 1, 2012 will require all “unenrolled” preparers (those who are not CPAs, Enrolled Agents or attorneys) to complete 15 hours of Continuing Education (CE) annually from an IRS Approved CE Provider such as The Income Tax School. In addition, these preparers must pass a new IRS Preparer Competency Exam by December 31, 2013 to earn the IRS credential of Registered Tax Return Preparer (RTRP) required for them to continue to practice. “This new requirement,” McCabe said, “will cause an exodus of tax preparers who will stop practicing rather than take the test and complete annual education. The result will be a shortage of qualified tax preparers and, consequently, a bidding war.”
“A high percentage of the industry’s most experienced tax preparers,” noted McCabe, “are elderly and rather than take the exam, many will retire.” McCabe continued, “In addition, tens of thousands of preparers with inadequate tax knowledge who have been enabled to prepare taxes by using tax software, would fail the test without additional education; and many of these preparers will quit.”
According to IRS news release IR-2012-59 dated June 5, 2012, some 340,000 tax return preparers are required to take the RTRP exam, but only about 4,800 people had passed as of that date. “This number constitutes only 1.4% of the preparers who must pass the test,” said McCabe.
McCabe, who is also founder and CEO of Peoples Income Tax, Inc., a multi-office tax preparation firm in Richmond, Virginia, said “We are concerned about the shortage of tax preparers expected for the 2014 tax season. To meet this need, we plan to enroll as many new students as possible in our local income tax classes to train new tax preparers for employment in our Richmond-area tax offices during the 2013 tax season and future years.” McCabe also provides his turn-key tax school system to independent tax business owners nationwide to enable them to adopt this best practice used by the national tax firms.
McCabe pointed out that the tax preparer regulations will create new professional career opportunities for people seeking employment or self-employment. “The regulations will enhance the credibility of the tax preparation profession which had been tarnished by many unqualified tax preparers in the past,” he said.
Sheila Clark, Director of The Income Tax School, said “we offer an online Tax Pro Career and a Tax Business package which include our Comprehensive Tax Course covering all topics on the RTRP exam. The 20-lesson, 60-hour e-learning course also includes free RTRP practice exam questions and satisfies the graduate’s first year IRS 15-hour CE requirement. The tax business version includes a home-based tax office operations manual and a tax service marketing handbook to help graduates start their own tax businesses,” she explained.
“Tax preparation is an ideal career option for early retirees who don’t need to work year-round, and for stay-at-home parents with young children who wish to be off when their children are home during the summer months,” noted McCabe. “Tax preparation is also a good complement for financial service and real estate professionals,” he said. “College students could also learn tax preparation to obtain practical knowledge and valuable job experience as tax preparers.”
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About The Income Tax School:
The Income Tax School was formed in 1989 as a division of Peoples Income Tax, Inc. which was founded in 1987 by Chuck McCabe who serves as President and CEO. On May 1, 2010, The Income Tax School, Inc. was spun-off as an independent legal entity. The School currently offers 40+ income tax training courses online, ranging from 3 hour CPE programs to 30-60 hour courses, plus a five-course 180-hour Chartered Tax Professional-CTP® certificate program. The school provides CPE for CPAs as a NASBA sponsor and for EAs and unenrolled tax preparers as an IRS Approved Continuing Education Provider. The School’s tax preparation course, student texts, and instructor guides are used by tax, accounting and financial services firms that provide in-house tax training, as well as by many colleges and career schools. The Income Tax School was ranked #1 by TrendLists for online tax education. Complete information about The Income Tax School and course offerings can be found at the school’s website: http://itstestsite.wpengine.com