Beginning January 1, 2011, the income tax preparation industry is being regulated. What will this really mean for the average taxpayer? If history is any indicator, regulation always raises prices. All paid preparers will be required to pay an annual license fee and take a given number of continuing education (CE) hours of training each year. The Tally Tax Man is an Enrolled Agent (EA). He is already licensed with the IRS and undergoes several hours of CE each year. He is ready for the new rules to come into effect.
This new set of rules will change the business model for the large tax preparation franchises. With these new rules, they will have to raise their rates to cover these new costs for compliance. The new rules will also put many neighborhood tax preparers out of business. This is a very unfortunate consequence of regulation.