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Beyond Tax Season: Practice Before the IRS

March 2015
Accounting Today

In an article published by Accounting Today on Aug. 3, 2015, Brett Beveridge discusses how the Internal Revenue Service (IRS) and how it is really starting to tighten the rules on who can and cannot represent clients. “When a preparer signs a return, Circular 230 requires the preparer to have a reasonable basis that the return being signed is true,” Beveridge explained. “2014 returns filed in 2015 are subject to tangible property regulations, so preparers have the obligation to have a reasonable basis that the return they are signing is compliant with the new regulations.” He continued on to say, “There is a lot of angst among CPAs about the regulations. So many are not sure what to do for their clients and a lot [of people] are trying to profit from that. They’re trying to sell their services to smaller CPA firms, implying that you have to file a Form 3115 for every return you file, and if you don’t there’s this parade of horribles that might happen. It’s kind of overblown.” In conclusion, however, Beveridge adds, “In reality, you only have to change your method of accounting if your method doesn’t clearly reflect income. So if your method is in substantial compliance with the rules, you are probably fine.” You may read the full article here.