Over the next three years, all tax preparers must register with the IRS. Preparers must:
- Obtain a Preparer Taxpayer Identification Number (PTIN).
- Pass a basic tax competency test. Attorneys, enrolled agents, and CPA’s are exempt from the test.
- Pass a suitability test including a credit check, criminal records check, and an audit to make sure they have paid their own taxes.
- Pay a fee of $75 to $300 which covers three years of registration (final amount TBD).
- Complete 15 hours of continuing education annually.
The requirements will be phased in over the next three years. PTIN’s will be available beginning in September. If you obtain a PTIN before the exam is ready, you have three years to take the exam. If you apply for a PTIN after the exam is ready, you won’t be issued a PTIN until you pass the exam.
All returns prepared by a professional after 31 December 2010 will need to include a PTIN.
What does this mean to consumers?
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