Key W Tax: Incometax & Finances

IRS Issues Guidelines on PTIN Renewals and Fingerprinting for PTINs Tax preparer

There are lots issues about PTIN Renewals, the Guidelines seems to be endless, so “The purpose of the content is to provide information that helps you improve your business and we always strive to provide accurate and useful information only. So According to the Tax Preparer Connections dot com website, Jon A Haynes stated: The next complementery content:

The Internal Revenue Service has issued guidelines clarifying many important features in their tax preparer oversight program. In Notice 2011-80, the IRS clarified the following:

1. Preparer Tax Identification Numbers (PTINs) will be renewed on an annual basis only beginning in 2011. Current PTIN and provisional PTIN holders can renew from October 15, 2011 through January 1, 2012. Renewals can be done online or by using Form W-12. The annual renewal fee of $64.25 must be made with the renewal.

2. The IRS will issue provisional PTINs for non-credentialed preparers until April 18, 2012. After that date, PTIN candidates must pass an IRS qualifying exam (EA or RTRP) before they can apply for a PTIN.

3. If a non-credentialed practitioner prepared 2010 federal tax reports for a fee without securing a PTIN, that person must apply for a provisional PTIN for 2010 and pay the $64.25 fee. The practitioner must then apply for a 2011 PTIN and pay another $64.25 in order to prepare 2011 federal tax reports for a fee. Failure to do so will result in stiff fines and penalties, and possibly criminal prosecution.

4. Provisional PTIN holders will have until December 31, 2013 to pass either the RTRP or EA examination to continue preparing federal tax reports for a fee on January 1, 2014.

5. Beginning January 1, 2012, provisional PTIN holders must earn 12 continuing professional education credits in specified areas to retain preparer privileges. Three CPEs must be earned in federal 1040 tax updates; 10 must be earned in federal 1040 education, and 2 must be earned in professional ethics as mandated in Circular 230. Credits must be earned through IRS-approved sponsors and providers, with a listing of approved sponsors to be made available in spring, 2012.

6. Certain tax preparers, namely provisional PTIN holders, will have to pass a suitability check that includes fingerprinting for purposes of conducting a background check through the Federal Bureau of Investigation’s identification records database. Enrolled agents, enrolled actuaries, enrolled retirement plan agents, certified public accountants, and attorneys are exempted from the fingerprinting program at this time, but the IRS has reserved the right to change that policy.

The IRS has also published proposed regulations – REG-116284-11 – establishing user fees for fingerprinting and taking the RTRP competency exam. The IRS portion of the fingerprinting fee would be $33, and the IRS portion for the competency exam would be $27. With third party vendor fee estimates, the IRS projects a $60 to $90 fee for fingerprinting and a $100 to $125 fee for RTRP testing.

The RTRP examination will be a “pass-fail” test. The IRS has not established what the minimum score or percentage must be to pass, but they have indicated that candidates who take the exam and fail would have to pay another test fee of $100 to $125 to re-take the exam.