Pending IRS Tax Preparer Regulation Spawns Chartered Tax Professional Certification Program

The Income Tax School today announces their Chartered Tax Professional – CTP® program, designed to be the industry standard for training paid tax preparers.

Richmond, VA, Sept. 28, 2006 — Federal legislation regulating paid tax preparers is moving forward in the Congress. On June 28, 2006, the bill that would regulate paid tax preparers, S. 832 — first introduced to Congress on April 18, 2005 by Senator Jeff Bingman–was combined with S. 1321 and approved by the Senate Finance committee. The movement for regulation of tax preparers has gained momentum since a GAO study released earlier this year. Accounting Today reported in a May 15, 2006 article: “On the heels of last month’s Government Accountability Office study on the errors committed by commercial chain tax preparers, the legislative push toward preparer registration and licensing appears to have gained considerable traction.”

Peoples Income Tax, Inc. President, Charles E. McCabe, observed that the pressure for preparer regulation is now greater and is supported by the major players in the tax industry. “Tax industry people ‘in the know’ say tax preparer regulation is imminent,” said McCabe.

In anticipation of new proficiency requirements for tax preparers, McCabe’s company has just introduced a comprehensive Chartered Tax Professional (CTP®) certificate program through its education division, The Income Tax School. The CTP® program requires completion of a series of six 30-hour courses in Basic, Intermediate and Advanced individual and Small Business income tax preparation. The certificate program also requires that students have 500 hours of tax preparation experience before graduation. Graduates must also complete 20 hours of Continuing Professional Education (CPE) annually to retain the CTP® designation, and will be encouraged to prepare for and take the IRS Enrolled Agent (EA) exam to also become EAs. The CTP® program is endorsed by the National Alliance of Tax Business Owners (NATBO), under which a Certification Board of prominent tax industry leaders and educators provides oversight of curriculum quality, practices and standards of the Certificate Program.

McCabe started The Income Tax School initially to train tax preparers to provide seasonal staff to support the growth of his multi-office tax service. But now, the income tax preparation courses have evolved into a nationwide business that will likely become much larger than Peoples’ core tax preparation business, particularly in light of imminent national regulation of tax preparers.

Karen Colyer, a Virginia graduate of The Income Tax School’s 60-hour Comprehensive Income Tax Course, commented: “I’m excited about the CTP® program, which provides the opportunity for me to continue my professional tax education and pursue a highly credible certification that will document my advanced level of tax knowledge and professional attainment.”

McCabe plans to petition the IRS to exempt Chartered Tax Professionals (CTP®) from the competency test that would be required by the proposed legislation to regulate tax preparers. He said “the current legislation would exempt EAs, CPAs and attorneys; however, those who have earned the CTP® will have equivalent or greater tax knowledge than the majority of these professionals, and they will have passed comprehensive exams for each of the six certificate program tax preparation courses.”

All tax preparation courses are offered via the Internet and can be completed anywhere, anytime-24/7. Instructor support is provided to students. Each module consists of ten 3-hour lessons and can be completed in 5-10 weeks (one or two lessons per week). The entire program can be completed in less than eighteen months.


About The Income Tax School:

The Income Tax School was formed in 1990 as a division of Peoples Income Tax, Inc. which was founded in 1987 by Mr. McCabe who serves as President and CEO. The School currently offers fourteen income tax training courses online, ranging from 3 hour CPE programs to 30-60 hour courses; a new Chartered Tax Professional (CTP®) certificate program has just been introduced. The School’s tax preparation courses are used by tax, accounting and financial services professionals, firms that provide in-house tax training, as well as colleges and career schools. The Income Tax School has the Internet infrastructure and distribution channels to become a significant national player in the growing professional career education industry. Complete information about The Income Tax School and course offerings can be found at the school’s new enhanced website.

Contact: Chuck McCabe
(804) 204-1040 / (800) 984-1040