IRS Proposes to Increase Regulation of Paid Tax Preparers (HRB, JTX)

New rules proposed today from the IRS will allow greater regulation of tax preparers.

The IRS will require preparers to register and pass competency exams. This will only apply to paid tax preparers, so voluntary organizations such as the United Way should be able to continue to assist low-income families in the future.

Along with passing the competency exams, preparers will need to meet continuing education requirements. Preparers will need to also register with the IRS and obtain an ID number to be included on any returns that they prepare.

Attorneys, CPAs and enrolled agents will not need to pass exams or take continuing education.

Companies to keep watch over for increase fees due to the new regulation are:

• Jackson Hewitt Tax Service (NYSE: JTX); and
  
  
• H&R Block (NYSE: HRB).

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