IRS Update: Continuing Education Reminder for Registered Return Preparers

Below is a reminder about the Continuing Education (CE) requirements for registered return preparers.

All registered return preparers who are not a CPA, attorney, or Enrolled Agent must complete 15 hours of continuing education each year.

The continuing education requirements begin this year (2012) and must be met by December 31, 2012. The CE requirements must also be met even if you have not completed the testing requirement.

The 15 hours of continuing education must include:

• 2 hours of ethics
• 3 hours of Federal tax law update
• 10 hours of other Federal tax law

Also, the continuing education requirements do not apply to certain supervised preparers and preparers who do not prepare individual 1040 returns.

Click here to read the entire CrossLink Tax Update which includes more of the latest information on Continuing Education AND Record Keeping requirements for Registered Return Preparers.

IRS Update: Update on Testing for Registered Tax Return Preparers

As a reminder, all provisional registered tax return preparers need to take and pass a competency test by the end of 2013.

Here is the latest information on testing:

• Beginning April 16, 2012, the test will be based on 2011 tax law.
• Beginning April 16, 2012, the test results will be available to the preparer before they leave the testing site.
• The passing score for the exam is 350. The maximum score is 500.
• Preparers who complete the test before April 2012 will receive their results as follows:
• Before March 2012 – Results mailed in early March
• During March 2012 – Results will be mailed in 7 – 10 business days
• The test may not be taken between April 1 and April 15, 2012. The IRS will use this time to update the test content so that it reflects 2011 tax law.

Click here to read the entire CrossLink Tax Update which includes more of the latest information on testing for Registered Tax Return Preparers.

IRS Update: Response to Identity Theft

Even before identity theft rose to the top of the IRS’s annual “Dirty Dozen” list of tax scams for the 2012 Filing Season, the IRS has been focusing on preventing, detecting, and resolving identity theft cases as quickly as possible. Identity theft is one of the most complex issues the IRS handles due to the growing demands for getting refunds out quickly as well as the screening process that identifies false returns before the refund is issued.

Some of the ways the IRS is working to prevent identity theft are:

• Instituting new fraud filters this year to help detect returns filed by identity theft perpetrators.
• Implementing the Identity Protection PIN program for which the IRS will issue a 6-digit “Identity Protection PIN” to a taxpayer who has been a victim of identity theft. This helps the IRS ensure that the processing of the taxpayer’s return is not delayed.

One way a taxpayer may get their first indication that they have been a victim of identity theft is when they receive a notice from the IRS indicating that:

• More than one tax return was filed using the taxpayer’s name and SSN.
• They received wages from an employer they did not work for.
• They have a balance due refund offset or have had a collection taken against them for a year that they did not file.

Click here to read the entire CrossLink Tax Update which includes more information on the IRS response to identity theft.