|
On 1/4/2010, the IRS issued the
following "proposals" to regulate tax preparers. It will take a few
years to fully implement all of these proposals and they may change
during the policy-making process. In the meantime,
CTEC regulations remain in full force
and effect, so tax preparers in California must continue to comply with
state registration requirements.
Getting a PTIN
The Preparer Tax Identification
Number (PTIN) is an identification number that all paid tax return
preparers must use on federal tax returns. Anyone who, for compensation,
prepares any federal tax return must have a valid PTIN, which means a
PTIN issued after 9/28/2010 when a new PTIN sign-up system was launched.
Tax preparers should visit www.IRS.gov to obtain a “provisional” PTIN
and pay a fee of $64.25.
In a reversal of its original policy,
the IRS announced on 9/21/2011 that it would continue issuing
“provisional” PTINs until 4/18/2012 to applicants who have not yet taken
the competency exam (described below). Provisional PTINs will be
permitted on client returns during the 2012 tax season. Once the IRS
stops issuing provisional PTINs after the 2012 tax season, anyone
seeking a PTIN would need to complete the competency test BEFORE
obtaining their PTIN.
Renewing a PTIN
Tax preparers will be required to
renew their PTINs by December 31st of each year through their online
accounts or by mailing Form W-12. The PTIN renewal fee is $63.
Competency Examination
The IRS will begin offering a
competency examination in December 2011. Those who pass the exam will
have the “provisional” label removed from their PTIN. Current PTIN
holders will be expected to successfully complete this exam no later
than 12/31/2013.
The competency exam will consist of
120 multiple-choice and true-false questions. Question topics will cover
the 1040 series of returns for individuals receiving wage and
non-business income. California Tax School’s 60-hour beginner course has
included hundreds of test questions in the federal section which may
appear on the IRS competency exam.
The competency exam will be
administered at approximately 260 locations nationwide. Registered
preparers will be able to select a testing time and location through
their online accounts at www.IRS.gov/ptin. The testing fee will be $116
(which is separate from the annual PTIN fee). On the day of the exam,
preparers will report to their selected testing site and take the
2˝-hour exam while openly referring to Publication 17.
Continuing education
California Tax School is an
IRS-approved continuing education provider. IRS-required continuing
education will begin sometime in 2012.
Updates and more information
Visit
http://www.irs.gov/taxpros/article/0,,id=210909,00.html
or call 877-613-7846.
|
