MACPA's Statement - October 2010 - 18

TAx COrnEr
Tax preparer registration
continued from page 14 For competency testing purposes, small business will include Form 1040 Schedules C, E and F and various other 1040 related forms. Appendix I of the Return Preparer Review report contains a detailed list. Additional guidance for individuals who do not prepare any Form 1040 series returns and who are not an attorney, CPA or enrolled agent will be provided when testing is implemented. The IRS plans to add a third test with regard to business tax rules after the threeyear implementation phase is completed. Those who need to test will need to physically go to a testing site, authenticate their identity, and take the test in person at the testing site. More information about testing, including test locations and test procedures, will be posted on the Tax Professionals page on IRS. gov when it becomes available. 11.	 Will	the	IRS	offer	study	courses	prior	 to	testing? The IRS will provide basic information about the forms and schedules that will be covered by the return preparer examination, but will not offer any preparation courses. Commercial businesses or individuals may offer preparation courses. 2.	 Attorneys	and	certified	public	accountants	in	some	states	are	not	subject	to	 continuing	 education	 requirements.	 Will	 this	 impact	 the	 application	 of	 the	 proposed	 IRS	 rules	 for	 those	 individuals? No. The lack of continuing education requirements for attorneys or certified public accountants in a specific state will not impact the exception. All attorneys and certified public accountants will be exempt from IRS CE requirements. However, as stated in the Return Preparer Review report, the IRS believes that all tax return preparers have an obligation to stay current on the tax laws and continuing education serves to help individuals remain current and to expand their knowledge within their field of expertise. Such courses are important to tax administration given the complexity of the tax laws and the frequent changes made to the Internal Revenue Code and the rules and regulations implemented to assist in the administration of the Code.

cPE REQUiREMENTS 7.	 What	 is	 the	 required	 percentage	 to	 1.	 What	 is	 the	 process	 for	 becoming	 pass	the	competency	test? a	 qualified	 sponsor	 for	 continuing	 education? This has not been determined. Stay tuned to the IRS.gov Tax Professionals Circular 230 section 10.6(g) outlines page for information on this issue. the current process. To qualify as a sponsor, a program presenter must: 8.	 What	 will	 happen	 to	 an	 unenrolled	 return	preparer	who	registers	with	the	 •	 Be an accredited educational IRS	as	a	part	of	the	initial	registration	 institution. The IRS will consider requiring continuof	return	preparers	but	does	not	pass	 ing professional education from addi•	 Be recognized for continuing educathe	competency	test	within	three	years	 tional individuals if data is collected in tion purposes by the licensing body from	the	implementation	date? the future that identifies such a need. of any state, territory, or possession Additionally, the IRS plans to reach out The IRS will contact them proposing to of the United States, including a to licensing authorities to encourage deactivate their PTIN and remove them Commonwealth, or the District of them to support annual continuing profrom the list of registered preparers, as Columbia. fessional education that includes federal well as, explaining the appeals process. •	 Be recognized by the Director of tax law topics and updates and ethics for 9.	 When	 will	 testing	 begin?	 What	 is	 Office of Professional Responsibility those individuals who are licensed by the	 deadline	 for	 passing?	 How	 many	 as a professional organization or socithem and who prepare federal tax returns. attempts	will	I	have	to	pass?	How	long	 ety whose programs include offering will	it	be?	What	is	the	cost?				 fEES continuing professional education Testing is expected by begin in midopportunities. 1.	 Enrolled	 agents	 currently	 pay	 $125	 for	 2011. Those individuals who have a enrollment	 and	 renewal.	 Attorneys	 and	 •	 File a sponsor agreement with the valid PTIN when testing begins will certified	public	accountants	pay	similar	 Director of the Office of Professional have until Dec. 31, 2013, to pass the fees	to	their	oversight	organizations.	Will	 Responsibility and obtain approval of test and may take the test an unlimited the	fee	for	obtaining	a	PTIN	be	applicathe program as a qualified continuing number of times to pass it. There will be ble	to	all	enrolled	agents,	attorneys	and	 education program (Form 8498, Proa fee to take the test and that fee will be CPAs	in	addition	to	their	other	fees? gram Sponsor Agreement for Continudue each time the individual attempts Yes. All paid tax return preparers will have ing Education for Enrolled Agents). to pass the test. The IRS has not deterto pay a fee to obtain and renew their As part of the new oversight program, the mined the amount of the fee, the length PTINs. This fee is in addition to any fee IRS is revamping the continuing educaof the test, and other test details at this that paid tax return preparers must pay tion approval process. Regulations issued time. For the latest information on this for any other certifications or licenses in August 2010 outline the proposed issue, stay tuned to the Tax Professionals they hold. Because attorneys, CPAs and modifications for providers of continuing page on IRS.gov. enrolled agents are exempt from testing, education programs. Additional informa10.	 Will	the	test	be	offered	online	or	will	 they will not be required to pay the sepation will be available at a future date. I	have	to	go	to	a	designated	location? rate testing fee.

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sTATEMEnT
MACPA's Statement - October 2010

Table of Contents for the Digital Edition of MACPA's Statement - October 2010
