I was helping a friend filling the tax forms the other day, and he offered to pay for my time helping him. I know that it is illegal to be paid for tax preparation without a California license and IRS certification, so I declined, but it made me thinking. I looked around for the requirements and they're fairly simple - tax course in a community college once a year, pay some, pass a test and get a liability insurance.
But the IRS requirements also mention "Tax Compliance Check", and there's not much I could find on what that check is. Is it true to conclude that becoming a paid tax preparer will automatically trigger audits on my returns?