As shared by the Internal Revenue Service recently, the group is looking to regulate the legions of the tax preparing firms across America, and the move marks the first time that the agency has tried to oversee these businesses. The development might end up affecting how tax returns are prepared for millions of US residents.

As per the new rules, employees of giant tax preparations companies like H&R Block Inc. and Jackson Hewitt Tax Service Inc will have to pay a registration fee to the IRS, pass a "competency" exam and attend 15 hours of education every year.

No federal standard were set for these employees previously.

The new set of rules will also be applicable to the thousands of independent preparers and "mom-and-pop storefronts" that offer to prepare taxes as one of the many services.

"This is something that is long overdue. Until now, there have been no national, professional standards for one of largest financial transactions individuals have each year", said IRS Commissioner Doug Shulman.

The announcement was made by the agency on Monday.