What is a tax preparer?

The Internal Revenue Service defines a “tax preparer” as “a person who, for compensation, prepares all or a substantial part of a federal tax return or refund application.

What are the recent changes to becoming an IRS registered tax return preparer (RTRP)?

The IRS requires all paid tax preparers to register with the IRS, pay a registration fee, and obtain a Tax Preparer Identification Number (PTIN). If you already have a PTIN, you must also register under the new process. All paid tax preparers must register and obtain a PTIN before the tests are available (mid-fall 2011) or they will not be able to prepare a Tax Return Agent in Melton.

Beginning in October 2011, tax preparers must pass an IRS competency test to be officially recognized as a registered IRS tax return preparer. Individuals who have a PTIN before the exam is available have until December 31, 2013 to take the IRS competency exam and can retake the exam as many times as needed to pass. There is a fee for taking the exam, which is due each time the individual attempts to pass the exam. Once the test is available, new tax return preparers must pass the IRS competency test before they can receive a PTIN. The IRS will require competency tests for all paid tax return preparers (except attorneys, CPAs, and registered agents). The IRS will phase in three tests, as follows: Year 1 – payroll tax and non-business; Year 2 – payroll tax and small business; Year 3 – business tax rules. All tax preparers who register before the competency exam is available (October 2011) will have three years, until December 31, 2013, to take a competency exam.

What are the fees for obtaining a PTIN?

The IRS has an online registration system, paid tax return preparers pay a user fee of $64.25 the first year for a PTIN.

What is the difference between an Enrolled Agent and an IRS registered tax return preparer?

The activities of an IRS registered tax return preparer are limited to preparing tax returns for a fee and representing taxpayers in audits if the return being audited was a return they prepared, while registered agents are not limited in their activities before the IRS.

How do I become a tax return preparer registered with the IRS?

To become a tax preparer in California and Oregon, you must follow both state guidelines and IRS guidelines. The state of California requires that all paid tax preparers complete the 60-hour California Registered Tax Preparer qualification course and register with the California Tax Educational Council (CTEC). In addition to the state requirements, the Internal Revenue Services (IRS) requires an annual IRS competency exam. This is expected to begin in October 2011. Once an individual has a valid PTIN and passes the IRS competency exam, they become an IRS registered tax return preparer. Tax Agent in Craigieburn

How do I maintain my registration?

The IRS requires all paid tax preparers (except attorneys, CPAs, and registered agents) to complete 15 hours of continuing education per year to maintain their tax preparer education. The IRS requires that the 15 hours include three hours of federal tax law updates, two hours on tax preparer ethics, and 10 hours on federal tax law topics. There is no continuing professional education (CPE) requirement for 2011, but the IRS continuing professional education (CPE) requirement begins in 2012. Individuals who are registered tax return preparers and those who have a provisional PTIN but have until December 31, 2013, to take the examination must take 15 hours of continuing education courses from IRS-approved providers in calendar year 2012 and each subsequent year.

Are there other requirements?

Yes, the IRS may conduct a fingerprint check on some applicants in the future. All applicants are currently required to provide a statement of any felony convictions in the past 10 years when applying for a PTIN.

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