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.

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.