| The IRS plan for return tax preparer registration is | | | | not have to pass the new IRS competency exam are |
| scheduled to begin September 2010 and will affect | | | | Attorneys, Certified Public Accountants and Enrolled |
| nearly every professional tax preparer in some way. | | | | Agents. Paid preparers in states such as California, |
| Paid tax preparers must register with the IRS to obtain | | | | and Oregon who have to pass their own states' |
| a Preparer Tax Identification Number, pass an IRS | | | | individual criteria must still pass the IRS exam. |
| exam and satisfy annual continuing education. | | | | Credential holders of organizations like the Accredited |
| The definition of a professional tax preparer or paid | | | | Council of Accountancy for Taxation (ACAT) will also |
| tax preparer is as follows: all individuals, Attorneys, | | | | have to pass IRS competency exams and take the |
| Certified Public Accountants and Enrolled Agents who | | | | continued competency testing. Across the board, |
| are compensated for preparing, or assisting in the | | | | regardless of any private or state accreditation, if you |
| preparation of, all or substantially all of a federal tax | | | | are not an Attorney, Certified Public Accountant or |
| return or claim for refund or who sign, or are required | | | | Enrolled Agent you must obtain a PTIN, pass the IRS |
| to sign, a federal tax return or claim for refund as a | | | | competency exam, and take continued competency |
| paid tax return preparer. Any individual falling under this | | | | testing in order to be paid to prepare federal tax |
| category must obtain a Preparer Tax Identification | | | | returns as a registered tax preparer. |
| Number (PTIN). All paid tax preparers must obtain a | | | | Attorneys, Certified Public Accountants and Enrolled |
| PTIN in order to sign any federal tax returns or forms. | | | | Agents who prepare all or substantially all of a federal |
| The PTIN they obtain will be valid for three years. | | | | tax return or claim for refund will also have to obtain a |
| Testing of these preparers who hold a PTIN will not be | | | | PTIN and pay the fee associated with obtaining a |
| implemented until after registration and mandatory | | | | PTIN. However, they are not subject to the new IRS |
| PTIN usage are in place. Employees of a business | | | | testing or additional educational requirements if they |
| who fill out their employers return will not be required to | | | | are active and in good standing with their respective |
| obtain a PTIN. | | | | licensing agencies. |
| All paid tax preparers including Attorneys, Certified | | | | Looking at this brief outline of a few of the rules and |
| Public Accountants and Enrolled Agents who obtain a | | | | regulations proposed by the IRS, simply becoming an |
| PTIN will potentially be placed within a national public | | | | Enrolled Agent will potentially help you avoid 90% of |
| database. Other information about which paid tax | | | | the proposed rules. Of course, it remains to be seen |
| preparers and what information would be included is | | | | how quickly the IRS can implement these changes or if |
| not yet available. | | | | all the changes they desire will be seen to fruition. |
| As of right now, the only paid tax preparers who will | | | | |