The Pros And Cons Of Treasury Regulation 9501
In regards to the Social Security number requirement TD 9501(2)(a) says, that that the IRS will establish a process to obtain a PTIN number for tax return preparers who do not have a SSN. Additionally, It says that the final regulations apply to all tax return preparers regardless of U.S. citizenship or foreign citizenship or residency.
These words, “regardless of citizenship or residency,” mean all people regardless of citizenship or immigration status. The IRS should not discriminate against immigrants without a SSN because of nationality or alienage.
In relevance to the Social Security number requirement, Circular 230 does not require a Social Security number. Circular 230 says that a CPA can practice before the IRS, and that all tax preparers including CPAs need a PTIN number or other prescribed number.
Section 10.6(c) change of address states that in order to change the tax preparer’s address, the tax preparer must resend all personal information including the tax identification number(s) including the PTIN number. Please note, it does not require a Social Security number.
So far, all statutes, federal regulation, treasury regulation, and Circular 230 “do not” require a Social Security number. So, legally the IRS can not discriminate against immigrants without …show more content…
The IRS may think that this clause applies to them, but it does not. The IRS lacks two important elements: Agency formation and criminal intent. First, in order to refer for a fee, the IRS would have to enter into an agreement with the employer. And second, the IRS must have the criminal intent to “refer for a fee.” There is not an agreement between the IRS and the taxpayers to hire or refer tax preparers for a fee. So, the IRS should not deny a PTIN number because the IRS is neither an employer nor an agency with the intent to refer for a