Updated IRS Registration Requirements for Tax Preparers
In July 2010, we posted an article about the upcoming IRS registration requirements, since the IRS made some updates to the tax preparers’ registration requirements that go into effect January 1, 2011.
IRS updated PTIN Requirements:
- The annual fee is $64.25 per individual and is the same regardless of whether or not you are obtaining a PTIN or re-registering an existing PTIN. The amount of the fee may change in future years as the actual program costs are periodically reviewed.
- Under the proposed regulations, compensated tax return preparers will be required to renew their PTINs annually and pay the associated user fee.
- Everyone must pay the fee and sign up for a PTIN using the new process, including those preparers who already have PTINs. Tax return preparers who already have PTINs will be assigned the same PTIN under the new system.
- If tax preparers do not obtain (or renew) a PTIN by January 1, 2011, they can still prepare returns but only after they sign up through the new online registration system, pay the fee, and obtain (or renew) a PTIN.
- PTIN is an individual preparer’s number. Each preparer must obtain his or her own PTIN.
IRS updated Testing Requirements:
- Testing is expected to begin in mid-2011. Those individuals who have a valid PTIN when testing begins will have until December 31, 2013, to pass the test and may retake the test until they pass it. There will be a fee to take the test. The fee is charged each time the individual takes the test. The IRS has not yet determined the amount of the fee, the length of the test, and other test details.
- Those who need to take the test must physically go to a testing site, authenticate their identity, and take the test in person.