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WASHINGTON — The Internal Revenue Service today provided additional clarification for
tax return preparers about when to renew their preparer tax identification numbers (PTINs),
how suitability testing will be conducted, and when the continuing education requirement
will begin.
The IRS today released Notice 2011-80, which provides that PTINs must now be renewed
on a calendar year basis. All PTIN holders must renew their numbers 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 return preparer initiative requires anyone who is paid to prepare all or substantially
all of any federal tax return or claim for refund to register with the IRS and obtain a PTIN.
Certain preparers also must pass a competency examination, undergo a suitability check
and complete continuing education courses annually. The IRS will designate individuals
who meet these requirements as a Registered Tax Return Preparer.
Individuals designated as a Registered Tax Return Preparer will be authorized to prepare
federal tax returns and claims for refunds and to represent their clients during an IRS
examination of a tax return or claim for refund that the individual signed as the paid tax
return preparer.
The notice also clarifies a number of other issues.
The IRS has been issuing provisional PTINs to individuals who are not attorneys, certified
public accountants, or enrolled agents to enable them to prepare tax returns prior to
meeting competency testing and suitability requirements because the programs have not
begun. The IRS will continue issuing provisional PTINs at least through April 18, 2012.
Once the IRS stops issuing provisional PTINs, tax return preparers who are required to
complete the competency test or suitability requirements must complete these requirements
successfully prior to obtaining a PTIN.
The notice also provides that the 15-hour continuing education requirement for certain tax
return preparers will take effect starting in 2012. Registered Tax Return Preparers and
individuals required to pass the Registered Tax Return Preparer competency examination
before Dec. 31, 2013, must complete the 15-hour requirement prior to renewing their PTINs
for 2013 and subsequent years.
The notice also explains that certain tax return preparers who must pass a suitability check
will have to provide their fingerprints so that a Federal Bureau of Investigation database
search can be conducted. Generally, the fingerprint requirement will affect those preparers
who currently
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