How to Become a Registered Tax Return Preparer / PTIN

Here are the steps to be a registered tax return preparer effective January 1, 2011.

• Sign up for a PTIN if you have not already.

- All tax return preparers must have a PTIN including CPAs, attorneys and EAs.

- www.irs.gov/taxpros will allow you to sign up for $64.25

- Even if you already have a PTIN, you must still do this.

• You must pass a competency exam by Dec 31, 2013 as long as you have already obtained a PTIN before testing becomes available. If you don’t have a PTIN when testing becomes available you must pass the test before getting a PTIN.

- CPAs, attorneys and, EAs will be exempt from competency test requirements.

• Continuing education of 15 hours a year will be required (beginning date to be determined).

- 10 Hours must include federal tax law, 2 hours must include ethics and 3 hours must cover updates.

- CPAs, attorneys and, EAs will be exempt from the continuing education requirements.

I personally think it is interesting that professionals who currently have a PTIN still need to register for a PTIN and pay the fees. To me, it makes it clear that lawmakers are more concerned with generating more revenue than actually creating a healthy environment for tax preparers and their clients. While I am for tax preparer registration requirements, regulation shouldn’t be un-intuitive either. Why would a registered professional with a PTIN have to register for another PTIN? Also, who says all CPAs, attorneys and EAs have a tax background and the appropriate competency?

In other news the Senate passed the Small Business Jobs Bill (HR 5297) with 61 votes. The House is expected to vote on Sept. 20th. I could not find any changes to 1099 reporting requirements passed in the Healthcare bill earlier this year.