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What is a Tax Preparer? The Internal Revenue services defines a "tax return preparer" as "an individual who, for compensation, prepares all or substantially all of a federal tax return or claim for refund. What are the recent changes to become a Tax Preparer? The IRS requires all paid tax preparers to sign up with the IRS, pay a registration fee and obtain a preparer tax identification number (PTIN). If you already have a PTIN you must still sign up under the new process. All paid preparers will be required to register and obtain a PTIN before April 18th, 2012 or they cannot prepare returns for compensation. Beginning in November 2011, tax return preparers must pass an IRS Competency Exam to officially become an IRS Registered Tax Return Preparer. Tax return preparers who have PTINs before April 18, 2012 will have until December 31, 2013 to pass the IRS Competency Test and may take the test an unlimited number of times to pass it. There will be a fee to take the test and that fee will be due each time the individual attempts to pass the test. New tax return preparers will be required to pass the IRS Competency Test before they can obtain a PTIN. The IRS will require IRS competency tests for all paid tax return preparers (except Attorneys, CPA's, Enrolled Agents). The IRS test specifications identify the major topics that will be covered by the test. Although individuals who already have a provisional preparer tax identification number (PTIN) from the IRS do not have to pass the exam until December 31, 2013, they may take the exam at any time. The test will have 120 questions in a combination of multiple choice and true or false format. Questions will be weighted and individuals will receive a pass or fail score, with diagnostic feedback provided to those who fail. Some reference materials will be available to individuals when they are taking the test. Prometric will provide individuals with Publication 17, Form 1040 and Form 1040 instructions as reference materials. Test vendor Prometric Inc. worked with the IRS and the tax preparer community to develop the test. Platinum Professional Services was involved in providing Prometric with the development of the test. The time limit for the test is two and half hours. The test must be taken at one of the roughly 260 Prometric facilities nationwide. Click here to obtain the test guide. The fee for the test is $116.00, which 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. Only certain individuals who prepare the Form 1040 series are required to take the test. Attorneys, Certified Public Accounts and Enrolled Agents (EAs) are exempt from testing and continuing education because of their more stringent professional testing and education requirements. Also exempt are supervised employees of attorneys, CPAs, attorneys or EAs who prepare but do not sign and are not required to sign the Form 1040 series returns they prepare and individuals who prepare federal returns other than the Form 1040 series. Approximately 730,000 return preparers have registered and received PTINs in 2011. All tax preparers will need to renew an existing PTIN annually. Preparers who have on-line accounts at www.irs.gov/ptin can use their accounts to schedule a test time and select a Prometric site. After April 18, 2012, new tax return preparers will be required to pass the competency test before they can obtain a PTIN. The IRS will require competency tests for all paid tax return preparers (except Attorneys, CPA's, Enrolled Agents). Enrolled Agents have separate requirements click here to learn more. The IRS will offer one competency examination. The examination will cover wage and non business income Form 1040 series returns as well as small business income, schedule C returns. The IRS plans to add another test to address the competency of the tax return preparer with regard to business tax rules after the three-year implementation phase is completed; All tax preparers who obtain a PTIN prior to April 18th, 2012 will have until December 31, 2013, to pass the IRS competency exam. The test is part of an ongoing effort by the IRS to enhance oversight of the tax preparation industry. Preparers who pass this test, a background check (not finalized as of yet) and tax compliance check as well as complete 15 hours of continuing professional education annually will have a new designation: IRS Registered Tax Return Preparer RTRP. Please note, residents of California and Oregon will also need to complete a state registered tax preparation course approved by their respective state. Platinum Income Tax School offers IRS Registered Return Preparation Tax Classes to provide you with the tax knowledge needed to pass the IRS Competency Test. What are the fees to obtain a PTIN? The IRS has an online registration system, paid Tax Return Preparers pay a $64.25 user fee the first year for a PTIN. What is the difference between and Enrolled Agent and a Tax Return Preparer? The practice of the IRS Registered Tax Return Preparer will be limited to preparing tax returns for compensation and representing taxpayers in Examination when the return under examination was a return that they prepared whereas the practice of Enrolled Agents before the IRS will not be limited. How do I become a California Registered Tax Return Preparer? To become a Tax Preparer in California and Oregon you must follow the state guidelines as well as the Internal Revenue guidelines. The state of California requires all paid Tax Preparers to take and pass a California Registered Tax Preparer 60 hour Qualifying tax course as well as
Once you do this you will become a California Registered Tax Preparer CTRP. In addition, you will be required to complete 20 hours of continuing professional education annually. Please note, you must also abide by the IRS requirements; pass the IRS competency exam. Platinum is approved by the California Tax Educational Council CTEC to offer the CTEC California approved 60 hour Qualifying Course.as well as CTEC approved continuing professional education courses. How do I become a Oregon Licensed Tax Return Preparer? The State of Oregon requires that individuals that prepare tax returns for compensation obtain a Tax Preparer License. The Tax Preparer License enables a person to lawfully prepare personal income tax returns in the State of Oregon. A tax preparer must work under the supervision of a Licensed Tax Consultant, a Certified Public Accountant, a Public Accountant, or an Attorney who prepares tax returns for their clients. The state of Oregon requires all paid Tax Preparers to complete an Oregon 80 hour Basic tax course and pass an exam (administered by Oregon Board of Tax Practioners). In order to become an Oregon Licensed Tax Preparer you must:
Licensees are required to complete a minimum of 30 hours continuing education as a prerequisite to renewing their license each year. Platinum is approved by the Oregon State Board of Tax Practioners (OBTP) to offer both Oregon Basic 80 hour basic tax course as well as Oregon approved continuing professional education courses. How do I become a Oregon Licensed Tax Consultant? Once a Tax Preparer meets certain additional requirements, he or she can then choose to become a licensed Tax Consultant. A licensed Tax Consultant enables a person to lawfully prepare personal income tax returns in the State of Oregon for a fee as a self-employed or independent tax practitioner To become a Licensed Tax Consultant if presently a Licensed Tax Preparer, the Preparer must submit evidence that he/she has actively worked in the capacity of a licensed tax preparer for a minimum of 780 hours during at least two of the last five years. The tax preparer must have a Verification of Work Experience form completed by their employer(s) and shall submit it with the Consultant Examination Application and required fees. Applicants must have completed, within one year prior to submitting application, a minimum of 15 hours of acceptable continuing education (courses are offered by Platinum Professional Services). You must pass the tax consultant examination administered by the Tax Board with a 75% pass rate or higher. How do I become an IRS Registered Tax Return Preparer? In addition to the state requirements (Oregon and California only), the Internal Revenue services requires an annual IRS Competency Exam and to obtain a PTIN. Once an individual possesses a valid PTIN and passes an IRS Competency Test, they will become an IRS Registered Tax Return Preparer RTRP. Please refer to the IRS Guidelines for a detail of the requirements. Platinum Income Tax School currently offers IRS tax courses and preparation tax courses to pass the IRS Competency Exam. How do I keep my registration current? The IRS will require tax preparer continuing professional education of 15 hours per year to further your tax preparer training for all paid Tax Return Preparers (except Attorneys, CPA's, Enrolled Agents). The IRS will require the 15 hours to include three hours of federal tax law updates, two hours of tax preparers ethics and 10 hours of federal tax law topics. Platinum Tax School is the offering 15 hour IRS Continuing Professional Education CPE courses in all 50 states. Although, there is no continuing education requirement for 2011. The continuing education requirement will begin in 2012. Individuals who are Registered Tax Return Preparers, and those who have provisional PTINs have until December 31, 2013 to pass the test, will still need to obtain 15 hours of continuing education courses from IRS approved providers during calendar year 2012 and each subsequent year before they can renew there PTIN. Once you complete our IRS Continuing Professional Education Tax Course you will receive a Certificate of Completion. Platinum will then report your completion to the IRS electronically. The California Tax Education Council (CTEC) requires that you complete 20 hours of continuing professional tax education cpe by October 31st of each year. Once you complete our CTEC Continuing Professional Education Tax Course you will receive a Certificate of Completion. Platinum will report your completion to CTEC electronically. You then be able to register online at www.ctec.org. The fee is $25.00 to register with CTEC. Starting November 1, 2012, CTEC's late fee will increase from $15 to $55. Additionally, CRTPs who do not renew their registration by January 15, 2013, and each year thereafter, will have to re-take the 60-hour qualifying education course, pass a competency exam from an approved education provider and register as a new CRTP. The new policy will shorten the grace period from 12 months to 10 weeks. The Oregon Tax Practioners Board (OTPB) requires that you complete 30 hours of continuing professional tax education cpe by September 30th of each year. Renewals applications are due no later than October 15th (postmark date). OTPB gives you a grace period of two weeks, during which time you do not have to pay the $35.00 reactivation fee (late fee). On the renewal application, you will self-attest that you have met the annual education requirement. Platinum's Income Tax School has combined the IRS continuing professional education CPE requirements with CTEC's (California) or OTPB (Oregon) CPE requirements so you can meet all your tax education needs in one income tax class. Text |
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