[startupcfo]

I was under the impression that family members, corporate officers, and trustees could represent other people in tax court and IRS procedures without going through the CPA/EA licensing

One of the questions in the MCQ indicates that a “tax preparer” has to be someone that is paid to prepare filings/requests for refunds.

A) So let’s say I work at a charity on my weekends as a volunteer treasurer. Am I a tax preparer by the definitions found in Circular 230?

B) Would the answer change if I was paid to be their full-time treasurer at a large charity, and part of my duties was helping the organization comply with tax laws?

BEC - 87 | 02/28
REG - 70 | 06/10, REMATCH | 08/30
AUD - XX | 09/10
FAR - XX | 12/10

[CPA2BEE]

Unless part of your duty as treasurer includes actually preparing the tax return and you are compensated for that service, then you are not considered a tax preparer. Making sure the company complies with tax laws sounds more like an advisory service rather than actual tax preparation

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[Anonymous]

I actually called the IRS to clarify whether volunteer tax preparation counted as preparer relative to another issue, and paid vs not-paid seems to be a very major determining factor in the eyes of the IRS. It was in reference to a different issue, but in general it seems like paid vs non-paid is a very important factor.

As far as preparing for your employer as one of your duties as an employee…that's a more difficult area. At present, you're not required to be a CPA or EA to prepare taxes, so that wouldn't be required. However, if you are a CPA or EA preparing your employer's business tax return, are you under Circular 230? I'm not sure. I don't think it would count under the “paid preparer” rules the same way as someone who only does tax returns, but personally I'd try to comply with the Circ 230 rules in all dealings just to be on the safe side.

[Missy]

Basically you have to have a PTIN.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Author]

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