When it comes to tax preparation, AARP reports that its trained volunteers have accuracy rates similar to commercial services. But when choosing a tax preparer, consumers are warned to do their homework.
Up to 1.2 million tax preparers make a living deciphering the U.S. tax code for clients, the McClatchy-Tribune reports. The IRS reported that 63 percent of all returns were done by tax preparers in 2013 and estimates are that about half of those were filed by unregulated preparers.
Regulations calling for 15 hours of continuing training each year were proposed by the Internal Revenue Service, but last month the U.S. Court of Appeals for the District of Columbia said the IRS isn’t authorized to write such regulations.
The Institute for Justice, which successfully fought the proposed IRS regulations in court, estimates that more than 350,000 small independent tax preparers would have been affected by the regulations.
Not surprisingly, certified public accountants (CPAs) looked more favorably on the proposal.
Kansas does not require testing, special licensing or continuing education to prepare income tax returns, said Brian Staats, with Adams, Brown, Beran,  & Ball in Great Bend. This is his 26th year as an accountant with the firm.
 “However if you are a CPA, in Kansas, and have a public practice, you are required to be licensed and have a permit to practice. It takes extensive training to become a CPA in Kansas,” he added, which includes 150 hours of college credit and passing a stringent four-part exam.  The permit to practice is regulated by the Kansas Board of Accountancy, which requires CPAs to complete 80 hours of qualified continuing education every two years.
“I agree that there needs to be some method to assure the public that the person they have hired to prepare their income tax return is competent and up to date on the tax laws,” said Staats, who added 15 hours isn’t nearly enough, in his opinion. “Our firm not only follows the licensing requirements of Kansas, but we have implemented our own system to regulate and provide additional training for our staff.
“The public is also at risk if they prepare their own return or have a friend prepare it that does not  have the extensive training and resources that professional tax preparers have,” Staats added. “There are estimated 600,000-700,000 unenrolled tax preparers, so ‘buyer’ beware!”