Maine Tax Reform

Last Tuesday, Maine voters rejected the tax reform law that would have expanded the sales tax to services and lowered the income tax. Despite some confusion around the wording of the ballot question and conflicting advertisements, voters clearly rejected the previously enacted law.

Both the media and various politicians claim a continued need to reform or change Maine's tax laws. What remains unclear is how those laws could be changed and what the voters actually support.

Find our previous analysis of the reform plan here.

Preparer Licensing

The IRS has established a task force to study the issue of licensing tax preparers that aren't CPAs, enrolled agents, or attorneys. The proposal could include initial tests, certification, and ongoing education requirements. The plan may be modeled on Oregon's existing law.

The proposals will impact the tax preparer community, as many tax firms use minimally trained employees to prepare returns. The potential increased scrutiny may push these firms to raise their practices and, subsequently, prices. CPAs are already subject to certification and ongoing professional education rules. Existing clients of CPA firms won't be affected by the proposed changes.