NEWS UPDATE: IRS Statement on Court Ruling Related to Return Preparers

The IRS has released a statement regarding the Registered Tax Return Preparer court ruling from Friday, January 18th.

"As of Friday, Jan. 18, 2013, the United States District Court for the District of Columbia has enjoined the Internal Revenue Service from enforcing the regulatory requirements for registered tax return preparers. In accordance with this order, tax return preparers covered by this program are not currently required to register with the IRS, to complete competency testing or secure continuing education. The ruling does not affect the regulatory practice requirements for CPAs, attorneys, enrolled agents, enrolled retirement plan agents or enrolled actuaries.

The Internal Revenue Service, working with the Department of Justice, continues to have confidence in the scope of its authority to administer this program. It is considering how best to address the court’s order and will take further action shortly. Please continue to check this site as additional information becomes available."

As posted by the IRS at www.irs.gov on January 22, 2013

IRS Update: Latest Information on Requirements for Tax Return Preparers

IRS Competency Testing

Remember that you only have until the end of 2013 to take and pass the IRS Competency Test.

With over 330,000 tax return preparers still needing to take and pass the test it is in your best interest to take the test as soon as possible. At the present time there are plenty of open spots at a Prometric testing site. However, if you wait until this time next year you may have difficulties making an appointment for the test. Read more

PTIN Renewal

A PTIN is good for each calendar year. The time to renew your PTIN for 2013 is approaching. To ensure that your PTIN is valid for 2013 you have from October 15 – December 31, 2012 to renew your PTIN. Read more

Click here to read the entire CrossLink Tax Update that includes further information on Testing and PTIN Renewal Requirements for Tax Return Preparers, as well as information on Continuing Education and Background Checks.

IRS Update: Who is a Supervised Preparer?

How is a supervised preparer different from a registered tax return preparer?

A supervised preparer:

• Must obtain a PTIN
• Does not have to pass the competency test
• Does not have to meet the yearly continuing education requirements

Who is considered to be a Supervised Preparer?

Under IRS Notice 2011-6 a Supervised Preparer is an individual who is:

• Employed by an attorney or CPA firm; or
• Employed by other recognized firms that are at least 80% owned by attorneys, CPAs or enrolled agents.
• Click here to read more

Click here to read the entire CrossLink Tax Update that includes further information on how a Supervised Preparer is different from a Registered Tax Return Preparer.