Tax Return Preparer PTIN and Other Regulation Issues

OK, we are fools for the acronym.  In case you are not into them like us, PTIN stands for Preparer Tax Identification Number.  PTIN's are required for all of us who prepare, or help to prepare, all or substantially all of a federal return, or claim for refund.  That means just about all of us need to apply for a PTIN on an annual basis.

It is interesting to note that nearly all of us in the return preparer community need to apply each year for a PTIN.  However, from that point onward, there are different rules for us depending on our status.  For example, CPA's need to have a PTIN, but they are not required to take the upcoming competency exam, or comply with the IRS continuing education requirements. 

The phrase Registered Tax Return Preparer (RTRP) is a designation that no one, at this point in time, qualifies for.  If you see anyone using the phrase to describe themselves, they should be advised to stop doing so.  Only those PTIN holders who have passed the competency testing, and the suitability check, will be considered RTRP's.  In other words, it is a special group of people who will hold the designation.

Getting back to PTIN issues, here are some of the newer developments:

1. 2012 PTIN sign up program will begin around October 2011.
2. The PTIN will now be good for an annual basis.  Previously, the PTIN was good at the time of registration.
3. PTIN application questions will be revised, and will now allow the following individuals to identify themselves:
1. Supervised, non-signing preparers who report to CPA, attorneys, or enrolled agents.
2. Those who do not preparer any Form 1040 series returns.

We are awaiting more information from the IRS regarding the upcoming competency exam.  It is late-July as this is being written.  Since the exam is projected to be ready in October, more news should be forthcoming soon.

More information at: http://www.taxpreparerlearningsystems.com/