1. 1 IRS Regulation of Return Preparers NTEU Briefing March 15, 2010

2. 2 BACKGROUND IRS Return Preparer Review IRS Strategic Plan Objectives Oversight agency interest Consumer protection group concerns Taxpayer Advocate concerns Almost 9 out of 10 use a paid preparer/software

3. 3 Require registration, user fee, and PTIN usage for all paid signing tax preparers Establish competency testing and continuing education for those who are not attorneys, CPAs, or enrolled agents Conduct tax compliance checks of all registered preparers Make all preparers subject to the ethical standards of Circular 230 Develop a public database of registered preparers Increase our compliance/enforcement presence in the tax return preparer community OVERVIEW OF RECOMMENDATIONS

4. 4 Phase One  September 1, 2010 – Launch registration  January 1, 2011 – Require all paid preparers to be registered with the IRS and use a PTIN  January 1, 2011 – Begin new 15 hour annual CE requirements Phase Two  Mid-2011 – Launch competency testing, CE tracking, renewal capability, tax compliance checks, etc.  TBD – Launch public database TARGET TIMELINE

5. 5 ALSO COMING SOON… PREPARER E-FILE MANDATE Legislation was signed in late 2009 mandating preparers that file more than 10 individual or trust returns to e-file beginning 1/1/2011 IRS has not yet issued rules or regulations Analysis is underway on whether the mandate will be phased in and whether there will be exceptions, waivers, or taxpayer opt-outs

6. 6 Executive Lead – David Williams  Project manager – Nicole Myers  Sub-teams: IT Infrastructure – Lisa Hernandez Policy and procedures – Melissa Reynard Testing and continuing education – Larry Orozco Compliance – Barbara Fiebich Communication – Leann Ruf IRS IMPLEMENTATION TEAM