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Every single professional that prepares and files tax returns must pay the $64.25 fee one time, plus $63.00 to renew annually and sign up for a PTIN using the new process even if you already have a Preparer Tax Identification Number (PTIN) number assigned from the IRS. If you already have a PTIN number, that number will stay the same.
Those preparing and filing tax returns that are NOT an attorney, certified public accountant, or enrolled agent must complete a competency exam and fulfill annual continuing education requirements.
Enrolled actuaries and enrolled retirement plan agents will be exempt from the competency test and continuing education requirements if they only prepare returns within the limited practice areas of these groups.
Also, use the chart below to determine your requirements or visit the IRS website for more information.
Category |
PTIN |
Tax Compliance |
Background |
Competency |
Continuing |
Practice |
Attorneys |
Yes |
Yes |
Proposals Pending |
No |
No |
Unlimited |
CPAs |
Yes |
Yes |
Proposals Pending |
No |
No |
Unlimited |
Enrolled Agents |
Yes |
Yes |
Proposals Pending |
Yes (Special Enrollment Exam) |
72 hours every 3 years |
Unlimited |
Registered Tax Return Preparers |
Yes |
Yes |
Proposals Pending |
Yes (RTRP Test) |
15 hours per Year |
Limited |
Supervised Preparers* |
Yes |
Yes |
Proposals Pending |
No |
No |
Limited |
Non-1040 Preparers** |
Yes |
Yes |
Proposals Pending |
No |
No |
Limited |
*To determine if you are a supervised preparer, view the Notice 2011-6 Fact Sheet.
**If you only prepare Forms 1040-PR and 1040-SS, you are considered a non-1040 preparer.
What will the new Designation be called?
The new designation will be called IRS Registered Tax Return Preparer (RTRP).
I have requirements to meet in California / Oregon, how will I be affected?
You will be required to fulfill the requirements of both federal and state organizations in California unless you become an attorney, certified public accountant, or enrolled agent. Currently, Oregon doesn't have any state exemptions for tax preparers.
What are the PTIN requirements?
PTIN sign up for paid federal tax return preparers began in mid-September 2010. All tax return preparers, including those tax return preparers who are attorneys, certified public accountants, and enrolled agents, must have PTINs if they prepare tax returns as of January 1, 2011. The online sign up form will be available at http://www.irs.gov/taxpros/. The IRS is assessing an annual fee of $63.00 for renewals and $64.25 for your initial registration for the PTIN registration.
Every single professional that prepares and files tax returns must pay the $64.25 fee one time, plus $63.00 to renew annually and sign up for a PTIN using the new process even if you already have a Preparer Tax Identification Number (PTIN) number assigned from the IRS. If you already have a PTIN number, that number will stay the same.
What are the details involving the IRS RTRP competency exam?
Paid federal tax return preparers must pass an IRS RTRP competency exam to officially become a Registered Tax Return Preparer (RTRP). PTIN registration is very important because if you already have your PTIN before or during the 2011 tax season, you may have until December 31, 2013 to complete this exam and take the test an unlimited number of times until you pass it. After the 2011 tax season, you will not be assigned a PTIN by the IRS until you pass this test.
Prometric will administer the RTRP competency exams for the IRS. The test will have 120 questions consisting of multiple choice and true / false questions. Each person will have 2.5 hours to complete the entire RTRP exam. The fee to take the exam is $116, pass or fail. The test is open book in the sense that Prometric will provide individuals with Publication 17, Form 1040 and Form 1040 instructions as reference materials during the exam. Please visit our IRS Registered Tax Return Preparer (RTRP) Exam Specification page for specific topics covered on the RTRP exam.
Attorneys, certified public accountants, and enrolled agents are exempt from the IRS RTRP competency test requirement. Enrolled actuaries and enrolled retirement plan agents are exempt from the registered tax return preparer competency test requirement if they only prepare returns within the limited practice areas of these groups.
The Fast Forward Academy IRS Tax Preparer Course & RTRP Exam Study Guide + Practice Exams including both Wages & Small Business Returns 1040 Series is available here today!
What are the IRS RTRP Continuing Professional Education (CPE) requirements for Registered Tax Return Preparers?
A new IRS RTRP continuing education requirement of 15 hours per year will begin in 2012. Per the IRS, courses will need to include 3 hours of federal tax law updates, 2 hours of ethics, and 10 hours of other federal tax law. This will not apply to attorneys, certified public accountants, enrolled agents, enrolled actuaries, or enrolled retirement plan agents due to their existing education requirements.
Continuing education credit opportunities will be available from a variety of approved content providers, like Fast Forward Academy.
How much is all this going to cost me?
Every single professional that prepares and files tax returns must pay the $64.25 fee one time, plus $63.00 to renew annually and sign up for a PTIN using the new process even if you already have a Preparer Tax Identification Number (PTIN) number assigned from the IRS. If you already have a PTIN number, that number will stay the same.
Additional fees to consider include the cost of RTRP exam study materials, the fees to take the IRS RTRP competency exam at a Prometric testing center, as well as the cost of IRS RTRP continuing education courses on an annual basis. Study materials and testing fees do not recur annually, but continuing education and PTIN renewal fees will be due each year.
Is there a background check and is my Social Security Number a requirement?
The IRS will be performing a background check for those registering for a PTIN that are not an attorney, CPA, or EA. Under the new requirements tax preparers have rights to due process so that each individual's background is thoroughly reviewed on a case by case basis. Under the new rules if you were denied a PTIN based on deliquent taxes, a prior felony, or some other reason due process allows you to request appeals and even go to court.
Per the IRS, Individuals are required to provide their social security number when they obtain a PTIN. However, the IRS is developing special procedures to allow the following individuals to obtain a PTIN without a social security number: 1) U.S. residents who have a conscientious objection to obtaining a social security number for religious reasons, and 2) persons who do not reside in the United States and who are not eligible to obtain a social security number. These individuals will be required to provide supplemental documentation to verify their identity and substantiate their eligibility for a PTIN under these specific exceptions.
Fast Forward Academy has several solutions to help you navigate the changes...
Also read...
Changes Explained |
FAQs |
Exam Spec. |
RTRP Videos |
CPAs & PAs? |
CFPs? |
CTEC? |
Important Dates
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