IRS Announces New Voluntary Program for Professional Tax Return Preparers

The IRS announced on June 26, 2014 that they will soon be issuing guidance on a new voluntary program for unenrolled professional tax return preparers. Under this new program, tax return preparers would be able to obtain a record of completion from the IRS for completing a required number of hours of continuing education. All tax return preparers who elect to participate in this program and receive a record of completion will be included in a database on IRS.gov that will be available by January 2015 to help taxpayers determine return tax preparer qualifications.

In order for an unenrolled tax return preparer to obtain an IRS record of completion, they must complete the following number of hours of continuing education:

• For the upcoming 2015 filing season only:
• Complete 11 hours of continuing education (CE) from an IRS approved CE provider as follows:
• 6 hours – Federal tax filing season refresher course (which includes a comprehensive test at completion)
• 3 hours – Other federal tax law topics
• 2 hours – Ethics

This requirement will need to be met by December 31, 2014.

• Each year after 2015:
• Complete 18 hours of continuing education (CE) from an IRS approved CE provider as follows:
• 6 hours – Federal tax filing season refresher course (which includes a comprehensive test at completion)
• 10 hours – Other federal tax law topics
• 2 hours – Ethics

Once the continuing education requirement is met, a professional tax preparer will also be required to consent to the duties and restrictions related to practice before the IRS that are detailed in Circular 230, Section 10.51.

A list of all IRS approved CE providers (https://ssl.kinsail.com/partners/irs/publicListing.asp) is available on IRS.gov and now includes a new column indicating which providers plan to offer the qualifying courses.

For further details, see the New IRS Filing Season Program Unveiled for Tax Return Preparers (http://www.irs.gov/uac/Newsroom/New-IRS-Filing-Season-Program-Unveiled-for-Tax-Return-Preparers) news release on the IRS website.

IRS Update: Changes to Small Business Health Care Tax Credit

Since 2010, the Small Business Health Care tax credit has been available to eligible small businesses that offer health insurance and have 25 or fewer employees. The purpose of this credit is to help small businesses pay for the premiums on health insurance for their employees.

The following changes have been made to this credit for tax years beginning in 2014:

• The maximum credit has increased to 50% of health insurance premiums paid.
• To be eligible for the credit, the small employer must purchase their health insurance through a Small Business Health Options Program (SHOP) offered through a health insurance exchange (marketplace).
• Read more

The credit will work with the new changes as follows:

• Credit is available to employers with 25 or fewer full-time equivalent employees whose average annual salaries are not more than $50,000.
• Credit is calculated on a sliding scale with a maximum credit of 50% of the employer's contribution toward their employees' health insurance premiums.
• Read more

An eligible employer claims the credit by completing Form 8941 (Credit for Small Employer Health Insurance Premiums) and including it with their federal return.

Click here to read the entire CrossLink Tax Update that includes further information on changes to the Small Business Health Care tax credit.