IRS Announces New Voluntary Program for Professional Tax Return Preparers

The IRS announced on June 26, 2014 that they will soon be issuing guidance on a new voluntary program for unenrolled professional tax return preparers. Under this new program, tax return preparers would be able to obtain a record of completion from the IRS for completing a required number of hours of continuing education. All tax return preparers who elect to participate in this program and receive a record of completion will be included in a database on IRS.gov that will be available by January 2015 to help taxpayers determine return tax preparer qualifications.

In order for an unenrolled tax return preparer to obtain an IRS record of completion, they must complete the following number of hours of continuing education:

• For the upcoming 2015 filing season only:
• Complete 11 hours of continuing education (CE) from an IRS approved CE provider as follows:
• 6 hours – Federal tax filing season refresher course (which includes a comprehensive test at completion)
• 3 hours – Other federal tax law topics
• 2 hours – Ethics

This requirement will need to be met by December 31, 2014.

• Each year after 2015:
• Complete 18 hours of continuing education (CE) from an IRS approved CE provider as follows:
• 6 hours – Federal tax filing season refresher course (which includes a comprehensive test at completion)
• 10 hours – Other federal tax law topics
• 2 hours – Ethics

Once the continuing education requirement is met, a professional tax preparer will also be required to consent to the duties and restrictions related to practice before the IRS that are detailed in Circular 230, Section 10.51.

A list of all IRS approved CE providers (https://ssl.kinsail.com/partners/irs/publicListing.asp) is available on IRS.gov and now includes a new column indicating which providers plan to offer the qualifying courses.

For further details, see the New IRS Filing Season Program Unveiled for Tax Return Preparers (http://www.irs.gov/uac/Newsroom/New-IRS-Filing-Season-Program-Unveiled-for-Tax-Return-Preparers) news release on the IRS website.

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: 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.

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.