Last year there were some problems with this issue, and I would expect more this year as well. Unenrolled preparers can’t yet say they are “registered tax return preparers,”
the designation IRS adopted for preparers who aren’t lawyers, CPAs or enrolled agents. The Service says that they first must pass the (minimum) competency test, a background check and a tax compliance check. Only then will they be allowed to use that designation.
There are concerns from all paid preparers that by passing a minimum competency exam the IRS is creating a new level of designation that will confuse the public.
Registered return preparers will face special restrictions on advertising.
This group will also have to comply with IRS rules regulating those who practice before the agency (registered return preparers will not be eligible) in Circular 230. IRS has said it will amend the rules so registered preparers who advertise must state that IRS does not endorse any particular return preparer and must direct viewers or readers to http://www.irs.gov for more information on preparers. But, the IRS has limited options for handling preparers who fail to e-file tax returns.