Yesterday, the Internal Revenue Service (IRS) proposed a plan to begin regulating paid tax preparers by requiring them to take competency tests, adhere to ethical standards and register with the government. The changes, if accepted, will NOT take place this upcoming tax season, but would be in effect for 2011. Between 900,000 and 1.4 million people pay to have someone do their taxes each year, but these services are unregulated in many states unless they are provided by a lawyer, certified public accountant or enrolled agents who represent taxpayers before the IRS.

Last year, 43 consumers filed complaints with our BBB regarding tax preparation services so this new measure will hopefully not allow less than adequate tax preparers to provide their "service" to consumers. The general rule of thumb for selecting a tax preparer is to avoid those who promise larger refunds or charge fees based on the size of the refund. For the full press release from the IRS, click the link below...

http://www.irs.gov/newsroom/article/0,,id=217781,00.html