New IRS Laws Spike Independent Conversions to Larger Systems

If you are in the tax preparation industry, there are many new laws implemented by the IRS this year, which will affect the way you do business. Starting mid-September, the IRS will be implementing stricter laws on tax preparers across the country which will include continuing education requirements on preparers, passing a series of tests to renew licenses through the IRS. These laws are being implemented to increase the qualification of preparers across the country. Included in these new laws is a mandatory registration for independent tax preparers where all paid tax preparers must register for a Preparer Tax Identification Number (PTIN) which is set to begin mid-month. This is one more law to further monitor the industry and increase the quality of service.

Resulting from the newly founded laws, a trend is emerging in the tax preparation field. Many independent preparers are converting to larger tax preparation firms, with systems already in place to help support new laws and initiatives. Independents recognize that larger, established systems will provide the services, bank relationships, and handle mandatory deadlines for the entire system to ensure that the business as a whole is prepared for these changes.

With 80% of Americans using a tax preparation service and with new, stricter IRS regulations, the tax industry as a whole will need to adapt and many small tax preparers unable to make these required changes will be eliminated in result.

With all of these new boundaries in place for tax season 2011, the tax preparation industry needs to be more organized than ever before. Smart Tax franchise has transitioned to prepare themselves for the upcoming tax season and welcomes independents into its system; offering preparers who file over 250 files per year a free conversion into a Smart Tax franchise.

For more questions, please refer to the IRS Laws online at: http://www.irs.gov/newsroom/article/0,,id=217781,00.html\