IRS Suspends PTIN Registration and Renewals

As of June 5, 2017, the IRS has temporarily suspended PTIN registration and renewals. They have done this because the United States District Court for the District of Columbia enjoined the IRS on June 1, 2017 from charging a user fee for the issuance or renewal of PTINs.

The IRS is presently determining how they will proceed and as additional information becomes available they will let everyone know.

See the IRS PTIN System Down announcement of June 5, 2017 for further information.

For more information on the court case and ruling see the following:

• US District Court Steele vs United States – Memorandum Opinion 

• Steele vs United States Class Action Website

Time to Renew Your PTIN for 2016, PTIN Fee Reduced

The IRS has begun accepting renewals and new applications for PTINs for calendar year 2016.

All paid preparers of federal tax returns must renew their PTINs for 2016. The IRS prefers that tax preparers renew by December 31, 2015. However, if this is not possible, tax preparers must renew before they begin preparing 2015 federal income tax returns.

The IRS has just announced that the annual fee to renew or obtain a new PTIN will now be $50 for the 2016 PTINs. See the IRS Reminds Tax Return Preparers of Limited Practice Changes and Announces Revised PTIN Fee news article on the IRS website for more information about the PTIN fee change.

Although the IRS may not require federal tax return preparers who are not EAs, CPAs, or attorneys to pass a test and complete yearly continuing education, the IRS still has the authority to require all paid federal tax return preparers to register with the IRS and obtain a PTIN.

To renew a PTIN, go to the IRS Tax Professional PTIN System page on the IRS website, log onto your IRS PTIN account, fill out the information requested, and pay the $50 renewal fee.

Failure to renew or obtain a PTIN could result in being penalized under IRS Code Section 6695.

Be sure to renew your PTIN before the 2016 filing season begins.

Tax Update: Voluntary Continuing Education Program for Unenrolled Tax Return Preparers

The IRS started a new voluntary program that allows tax return preparers to show the IRS and their customers that they are keeping up with tax law changes and increasing their tax knowledge by completing tax related continuing education courses each year. It is called the Annual Filing Season Program. Preparers who choose to participate will receive a Record of Completion from the IRS, provided that they complete the required hours of continuing education, have an active PTIN, and consent to adhere to specific obligations under Circular 230.

Any preparer who receives a Record of Completion for the 2016 Filing Season will have limited representation rights before the IRS. This means that they will be able to represent their clients, whose returns they have signed, before revenue agents, customer service representatives, and similar IRS employees. All other unenrolled return preparers will have no representation rights and will only be allowed to complete returns and sign them.

Another advantage for tax return preparers who participate in the Annual Filing Season Program is inclusion in the database of tax return preparers on the IRS website.

This is how the program works:

In order to receive an Annual Filing Season Program – Record of Completion for calendar year 2016, most preparers must meet the following requirements by December 31, 2015:

• Complete 18 hours of continuing education which must include:
• A six hour Annual Federal Tax Refresher course that covers filing season issues and federal tax law updates. The course must also include a knowledge-based comprehensive test (that the tax preparer must pass) that is given at the end of the course by the continuing education provider.
• Seven hours of other federal tax law topics
• Two hours of ethics
• Renew their PTIN
• Consent to adhere to specific practice obligations outlined in Circular 230, Section 10.51

All continuing education courses must be taken from an IRS approved CE provider and completed by the end of each calendar year.

Unenrolled preparers who passed the Registered Tax Return Preparer test, are an established participant in a state based return preparer program, are a VITA volunteer, or have met a limited number of other criteria will be considered exempt. This means their continuing education hours requirement will be 15 hours. For more details on which unenrolled preparers are exempt and the details of their requirements, see the Reduced Requirements for Exempt Individuals on the IRS website.

For more information on the IRS Annual Filing Season Program see the following:

• Main Annual Filing Season Program page on the IRS website
• General Requirements
• Chart of Annual Filing Season Program CE Requirements

IRS Update: Reminder to Renew Your PTIN for 2015

The IRS has begun accepting renewals and new applications for PTINs for calendar year 2015. Read More

All paid preparers of federal tax returns must renew their PTINs for 2015. Renewal must be completed before preparing any 2014 tax returns.

Although the IRS may not require federal tax return preparers who are not EAs, CPAs, or attorneys to pass a test and complete yearly continuing education, the IRS still has the authority to require that all paid federal tax return preparers register with the IRS and obtain a PTIN.

Click here to read the entire CrossLink Tax Update that includes further information on renewing or registering your PTIN for the 2015 tax season.

Reminder to Renew Your PTIN for 2014

Last week the IRS began accepting renewals and new applications for PTINs for calendar year 2014.

All paid preparers of federal tax returns must renew their PTINs for 2014. This must be done before preparing 
2013 returns.

Although the US District Court enjoined the IRS from enforcing the oversight of return preparers who are not EAs, CPAs, or attorneys, they did not strike down the requirement that all paid federal tax return preparers register with the IRS and obtain a PTIN.

To renew your PTIN, go to the IRS Tax Professional PTIN System page on the IRS website, log onto your IRS PTIN account, fill out the information requested, and pay the $63 renewal fee.

For new paid preparers, the fee is $64.25.

Failure to renew or obtain a PTIN could result in being penalized under IRS Code § 6695.

Return preparers do not have to take a competency test or take continuing education for 2014. This is because the IRS is still in the process of appealing the US District Court's decision enjoining the IRS from oversight of return preparers.

IRS PTIN System Has Reopened

IRS PTIN System Has Reopened

On February 1, the United States District Court modified its order that enjoined the IRS from enforcing the regulatory requirements for registered tax return preparers. The court ruled that it does not apply to the requirement that all paid tax return preparers register and obtain a PTIN.

Therefore as of today, February 4, the IRS has reopened their online PTIN registration system on their website.

Any preparers that still need to renew their existing PTINs or obtain a new one may now do so. The fee for renewing a PTIN is $63.00 and the fee for obtaining a new PTIN is $64.25.

To renew or obtain a PTIN go to the IRS Tax Professional PTIN System page on irs.gov.

IRS Update: Reminders for Year End and the Upcoming Filing Season

As we approach the end of 2012 and the start of the 2013 Filing Season, here are some reminders and things to know:

Start of Filing Season

The 2013 Filing Season will open on Tuesday, January 22, 2013. This is the day after Martin Luther King Jr.’s Birthday.

Renewing Your PTIN

If you have not already done so, you must renew your PTIN for 2013 before you begin to prepare 2012 returns. Click here to read more.

Continuing Education for Registered Return Preparers

It is very important to remember that all registered tax return preparers and return preparers with provisional PTINs must complete 15 hours of continuing education by the end of 2012. Click here to read more.

Increased Emphasis on Fraud by IRS

Due to the significant increase in the filing of fraudulent returns and identity theft, the IRS will be increasing their fraud filters for the upcoming filing season. Click here to read more.

Click here to read the entire CrossLink Tax Update that includes further information on reminders for year end and the 2013 Filing Season.