Apparently the first group of unenrolled preparers have passed the minimum competency test, scoring 70% or better on the test. This test is 120 multiple choice/true false open book exam on the 1040 only, that allows three hours to complete.
Those who pass a tax compliance check will receive certificates from IRS stating that they are now registered tax return preparers. They must be so proud…
But there are those who feel that this is too stringent a threshold to pass, so they have filed a lawsuit against the IRS. They feel the licensing rules are unfair for unenrolled preparers so they have filed a court challenge.
The lawsuit claims that the Service’s regulatory scheme is invalid. As we have noted, IRS is requiring preparers of the 1040 series of returns who aren’t CPAs (we are already required to have 120 hours of CPE every three years more then the IRS qualifications), attorneys (ho write all laws to favor themselves) or enrolled agents (typically ex-IRS agents) to pass a competency test, satisfy continuing education rules and pay fees (we all have to pay the fees).
Personally I find the lawsuit without merit, I am not happy with the solution, but I agree that taxpayers should only be able to hire those who know what the hell they are doing.