The Tax University Professional Tax Training

IRS Registered Tax Return Preparer

Information Updates

The Tax University has always believed that tax preparers are professionals. The IRS now recognizes this fact as well, and that recognition brings with it requirements that are similar to those of Enrolled Agents and Certified Public Accountants. The IRS has begun implementing a multi-year program to improve compliance and oversight of paid preparers. Some of the details of these regulations have not been finalized, but listed below is the information we have as of now.

If you have any questions about the Registered Tax Return Preparer Test, please call us at 1-855-776-8298.

About PTIN registration:

All tax professionals who prepare all or substantially all of an individual tax return for compensation must be at least 18 years of age and must register a PTIN with the IRS.
The PTIN fee is $64.25 the first year per individual, with a reduced fee of $30 for enrolled agents who are already subject to a $125 application and renewal fee. The fee is the same regardless of whether you are obtaining a PTIN or renewing an existing PTIN.
PTINs are valid for a calendar year and must be renewed on a calendar year basis. All PTIN holders must renew using the online PTIN application or paper Form W-12 and pay the required fee ($64.25 for 2012) after Oct. 15 and before Jan. 1 annually.
The IRS is developing one competency exam for wage and non-business 1040 returns (see below for more info). The competency exam is scheduled to be released in the fall of 2011. Preparers who obtain a Provisional PTIN before the test becomes available will have until December 31, 2013 to pass the competency exam.
Currently all PTINs in use are provisional PTINs. Once an individual passes the IRS’s competency test and satisfies the fingerprinting and background check requirements the PTIN will no longer be “provisional”.
Provisional PTINs will be issued until at least 4/18/12. Once the IRS stops issuing provisional PTINs, preparers who are required to take the exam must do so prior to obtaining a PTIN.
If the exam is not passed by 12/31/13, the IRS will notify the preparer and is proposing to deactivate the PTIN and remove the preparer’s name from the list of Registered Preparers.
The IRS is not currently conducting fingerprint checks as part of the PTIN application process, but this will be a requirement in the future. All applicants currently must include an explanation of any felony convictions in the past 10 years.
Everyone who is required to take the Registered Tax Return Preparer competency exam is also required to complete continuing education. The annual continuing education requirment is 15-hours, including 3-hours of federal tax law updates, 2-hours of ethics and 10 hours of other federal tax law. The continuing education requirement begins in 2012.

About the competency exam and fingerprinting:

The IRS is developing one competency exam for wage and non-business 1040 returns. Click here for topics that will be covered in the IRS Exam. The exam will be timed, and will be 2 to 3 hours long. It will be given in English only.
The IRS test is measuring your depth of tax knowledge, not your ability to use tax software and prepare a return.
The competency exam will be open-book and offered at Prometric testing centers throughout the US. The fee for the exam will be between $100 – $125 per exam ($33 of this goes to the IRS). Resources that will be available to exam-takers at the site will be Publication 17, Form 1040 and Form 1040 Instructions.
The test will have approximately 120 questions in a combination of multiple choice and true or false format. Questions will be weighted and individuals will receive notice of a pass or fail score at the end of the test. Diagnostic feedback will be provided to those who fail.
The fee for the test is separate from the PTIN user fee. Currently there is no limit on the number of times preparers can take the test, but they must pay the fee each time. Individuals must pass the test only once.

If you have any questions about the Registered Tax Return Preparer Test, please call us at 1-855-776-8298.