One of the
questions discussed at the recent NATP Focus Group in which I participated was “What
other services or benefits would you want to receive from NATP membership?”.
As an
afterthought to the discussion I was reminded that the tax preparation industry
is the only industry without a formal and effective national lobby. Tax professionals need a united and effective
voice in Washington.
This fact
first hit me during the winter 2013 National Association of Tax Professionals’
annual year-end tax update seminar known as “The Essential 1040”. Included in the discussion of the Affordable
Care Act, a.k.a. “Obamacare,” was a preview of the complex calculations for the
penalty that an individual or family without “adequate” health insurance
coverage must pay as part of their tax liability beginning with the 2014 tax
return. As I listened to the seminar
leader explain this new mess being forced upon us, our industry’s lack of an
effective lobby occurred to me.
One thing I
would want NATP to do is act as an “advocate” for the tax professional,
regardless of designation, credential, or lack thereof. I do realize that Larry Gray represents NATP
and its members before the IRS, Congress, and other government agencies,
presenting our point of view on issues of importance to the industry. While good, this is not sufficient. Instead of merely saying “tax professionals
would not like this to happen” we need a voice to shout “we’re not gonna
take it!”. Perhaps this is not the job of NATP.
But a tax professional lobby is definitely needed.
Creating a
new lobbying organization from scratch would be a difficult and time-consuming
task. As an alternative I have suggested
a “Tax Professional Advocacy Council” that includes official representatives of
all the current legitimate national tax preparation membership organizations.
Here is a
copy of a letter I sent to the Board of Directors of the National Association
of Tax Professionals, the National Society of Tax Professionals, the National
Association of Enrolled Agents, the National Society of Accountants, and the
Latino Tax Professionals Association a few years ago –
“Dear Board of Directors:
I have been a paid tax preparer since
February of 1972.
I strongly believe, as do many of my
fellow tax professionals, that the tax preparation industry needs a strong and
unified voice, a lobby, in Washington to represent the interests of tax
preparers before the Internal Revenue Service and Congress.
As Congress continues to, in my
opinion erroneously, use the Tax Code to administer and distribute federal
social welfare and other benefit programs, and the IRS, in response, forces
more excessive due-diligence requirements upon us, requiring us to be social
workers as well as tax preparers, we should not just ‘grin and bear it’, but
fight back.
While the IRS, and occasionally
Congress, does, from time to time, consult with the tax preparation community
on proposed regulations and legislation, I see this as merely a ‘professional
courtesy’ that does not carry much weight in the final decision-making process.
Although most national tax
professional membership organizations have some form of ‘government liaison’
and/or ‘political action’ functions, the limited memberships of the individual
organizations are not large enough to provide sufficient ‘weight’ to any lobbying
attempts.
Just about every other profession has
a lobby in Washington. So why not the tax preparation profession,
The creation of a new independent
organization of tax preparers, or of PTIN-holders, would be difficult, time
consuming, and expensive. My alternative
is to create a Tax Professional Advocacy Council that includes official
representatives of the National Association of Tax Professionals (NATP), the
National Association of Enrolled Agents (NAEA), the National Society of Accountants
(NSA), the National Society of Tax Professionals (NSTP), and the Latino Tax
Professionals Association (LTPA), and any other legitimate national tax
preparer membership organization. This
Council would speak with one voice for the combined memberships of all the
organizations.
While it has been suggested by some
tax professionals that the AICPA be included in the Council make-up, I hesitate
to do so. The AICPA has its own agenda,
which is very often contrary to the interests of non-CPA tax preparers. There are CPA tax preparers in the
memberships of NATP, NSTP, LTPA, and probably NAEA, so CPA preparers will be
properly represented.
One example of the need for a national
tax preparation industry lobby is the excessive “due diligence” requirements
for claiming an Earned Income Tax Credit.
As mentioned above, we must now become social workers and conduct
“background checks” to determine whether an individual qualifies for federal
welfare benefits. We have enough to do
just to get a client to provide us with all the financial information necessary
to properly prepare their 1040. We
should not be forced to take on this added unnecessary and time-wasting
responsibility.
If there was a tax pro lobby this
organization could have perhaps gone to the IRS and said that if the new due
diligence requirements are put into place its XXX,XXX members will refuse to
prepare tax returns that include an EITC. The organization could have then
worked with the IRS to negotiate regulations that would be acceptable to both
the government and the preparer community.
The organization could, with a strong
and unified voice, testify before Congressional committees, or meet with
appropriate Congresspersons, to explain how potential legislation would
adversely affect tax preparers, and make sure that the tax preparation
community is heard on specific tax issues.
Each membership organization
participating could add $5 - $10 to its annual dues to fund the operations of
the Council, and can also offer members the opportunity to contribute
additional funds to the Council. Perhaps
the organization would establish a permanent office in Washington DC with
minimal staff.
I believe that, as a side benefit, the
existence of such a lobby would be a help to the individual organizations in
attracting new members. Joining a
participating organization would add the voice of currently “unaffiliated” tax
preparers to the lobbying efforts.
I ask that the {name of organization}
work with the other national tax professional membership organizations I have
identified above to form a Tax Professional Advocacy Council to provide a voice
in Washington for the tax preparer. A
similar letter is being sent to the Board of Directors of each of the other
organizations.
I look forward to hearing your
thoughts, and any plans to act, on my proposal.”
The only
response I received came from the National Society of Tax Professionals (NSTP)
via a letter from the organization’s then President Bill Horn. Bill’s response included –
“We do agree that our industry needs a united
voice to be heard in front of Congress.
We believe that the Office of National
Public Liaison serves this function – and they are a very vocal and outspoken
group of tax practitioner representatives that form this group.
The IRS National Public Liaison
committee meets ten times a year.
Representatives from the National Society of Tax Professionals along
with members of other national organizations such as the American Institute of
CPAs, National Association of Enrolled Agents, National Society of Accountants,
and other tax organizations make up the 20-member committee.”
This is not
what I had in mind; it is certainly not the answer. An independent organization
is needed. Tax preparer membership
groups may be represented on this internal IRS committee, but I am not aware
that they have not been effective in “protecting” the interests of tax
professionals.
None of the
other organizations provided even the courtesy of an acknowledgement.
So fellow tax
professionals, what do you think about my proposal?
TAFN
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