Introducing the New CrossLink Blog!

We would like to welcome our customers and prospective customers to the new CrossLink Blog. As part of our commitment to building our relationship with you and taking your success personally, we believe that delivering meaningful information and interaction via social media is critical. The blog format will allow us to deliver industry news, support updates, commentary from CrossLink management, and other relevant information to help you be as successful as possible.

Remember to bookmark this page and check it periodically or subscribe using the RSS feed buttons on the right. This blog supports Google, Yahoo, Outlook and any Atom-compatible RSS feed reader applications. If you use Outlook, choose the Atom feed from the drop-down buttons, then select Microsoft Outlook from the drop-down list on the new page you arrive at and finally click Subscribe Now to complete the setup. You will then start receiving blog posts under a new folder within your Outlook client. Just make sure to come back to the blog itself to comment and interact with other users!

To comment, just click on the X comments link below any blog post and sign in with your Google (Gmail) or AOL Instant Messenger (AIM) account. If you don’t have an account, these are free to create by visiting accounts.google.com/SignUp or http://www.aim.com/. You can even subscribe specifically to comments using either the same RSS buttons on the right side of the blog or by clicking Subscribe by email below the comments box to receive replies to posts you commented on in your email box.

Thank you and happy reading.

P.S. Please be sure to “Like” us on Facebook at www.facebook.com/CrossLinkTax for even more valuable information.

IRS Update: Circular 230 and Registered Federal Tax Return Preparers

Remember registered Federal tax return preparers must follow the due diligence and ethical conduct requirements in IRS Circular 230 (Regulations Governing Practice before the Internal Revenue Service) when preparing tax returns. Enforcement of these regulations is performed by the IRS Office of Professional Responsibility (OPR).

As a registered Federal tax return preparer you will need to become familiar with all of Circular 230, however the following sections are especially important:

• Definition of practice before the IRS and what this means to registered Federal tax return preparers who are not CPAs, EAs or Attorneys:
• Section 10.2 – Definition of practice before IRS, Practitioner, and Tax Return Preparer.
• Section 10.3 (f) – What practice means for registered tax return preparers.
• Section 10.22 (Diligence as to accuracy) emphasizes that you must exercise due diligence when preparing all Federal tax returns.
• Section 10.27 (Fees) covers rules surrounding contingent fees and how a practitioner may not charge these types of fees for any services rendered in connection with any matter before the IRS which includes preparing a tax return.
• Section 10.30 (Solicitation) explains the rules covering advertising, solicitations and how and what fee information may be published.
• Click here to read more.

Click here to read the entire CrossLink Tax Update that includes further information regarding Circular 230 and how it affects Registered Federal Tax Return Preparers.

IRS Update: Registered Tax Return Preparer Testing

It is time for all provisional registered tax return preparers to begin thinking about taking the competency test. Even though preparers have until the end of 2013 to take and pass the test, you should think about taking the test beforehand to avoid the rush.

Below are some key facts to help you navigate the requirements for taking the competency test:

• The test is now based on Tax Year 2011 tax law. Click here for a list of the recommended IRS publications and form instructions that will help you prepare for the test.
• The testing fee is $116 and is paid at the time you schedule a test appointment.
• To take the test you must schedule an appointment using your IRS Online PTIN account you used to renew or register your PTIN at www.irs.gov/ptin. Once you have logged into your account select View Next Steps and Outstanding Requirements from the Main Menu (it is the third option under Functions on the left hand side of the Main Menu screen).
• The test consists of 120 multiple choice / true or false questions and will take up to 2.5 hours.
• A passing score on the test is 350 or above. The potential scores range from 50 to 500.
• You will receive your test results before you leave the testing site.
• The test is available in English only.

Click here to read the entire CrossLink Tax Update that includes further information regarding the Registered Tax Return Preparer Testing.

IRS Update: State e-File Due Dates and April 17 Federal Reminder

This is a reminder that the Federal filing deadline for individual returns is this Tuesday, April 17, 2012.

Taxpayers receive an extra day to file this year because of a District of Columbia holiday that takes place on Monday, April 16, 2012.

Most states that have a mid-April due date have also extended the filing deadline to Tuesday, April 17, 2012. To check the due date for your state click here.

April 17, 2012 is also the deadline for the following:

• To file an automatic six month extension (Form 4868)
• First individual estimated tax payment for 2012
• Making a contribution to an IRA for Tax Year 2011
• Filing Federal partnership tax returns (Form 1065)
• Filing estate or trust income tax returns (Form 1041)

Also, any returns rejected on April 17, 2012 will be considered timely filed if it is retransmitted and accepted by April 22, 2012.

Click here to read more CrossLink Tax Updates.