Important Message For All Tax Return Preparers
The Internal Revenue Service has announced new regulations and procedures for paid tax return preparers. These regulations and procedures will affect preparers (including CPAs and Enrolled Agents!) if they prepare tax returns after December 31, 2010. The following are the new regulations:
Register with the IRS: All paid tax return preparers (including CPAs and Enrolled Agents) must register with the IRS and obtain a preparer tax identification number (PTIN) if they prepare tax returns after December 31, 2010. Access to an online sign-up system is available through www.IRS.gov/taxpros. An annual fee of $64.25 is required. Everyone must pay the fee and sign up for a PTIN using the new process, including those preparers who already have PTINs. Tax return preparers who already have PTINs will be assigned the same PTIN under the new system.
Competency Exam: It is anticipated that beginning in mid-2011 paid tax return preparers must pass a competency test. The IRS has determined that CPAs and Enrolled Agents will be exempt from the competency test at this time.
Required Continuing Education: At a future date, paid tax return preparers will be subject to a new continuing education requirement of 15 hours per year. At the current time, the IRS has stated that this requirement will not apply to CPAs or Enrolled Agents since they already have continuing education requirements.
ACCPE will continue to monitor these new regulations and update this information as necessary. It is our goal to keep our customers informed of all important information regarding the accounting profession.
