The IRS has recently implemented guidelines relating to professionals who use of the new Registered Tax Return Preparer designation. These individuals are required to obtain a preparer tax identification number (PTIN) under the new tax preparer regulations.
A tax preparer was eligible to obtain a PTIN at the end of September 2010. However, these were issued provisionally pending final tax preparer certification involving completion of a competency examination. The IRS has selected Prometric to administer the exam when it becomes available in 2011. Prometric is a testing service for many professional designations.
After the tax preparer exam becomes available, a PTIN is only issued to someone who has passed the exam. A tax preparer who has already obtained a provisional PTIN has until the end of 2013 to pass the examination. Exemption from this test is available to CPAs, attorneys, and IRS enrolled agents.
PTIN registration and passing of the competency exam is not required of tax assistants involved in less than substantial preparation of tax returns. These individuals must not sign returns but instead work under the supervision of a tax practitioner with a PTIN.
In addition to the competency exam, the IRS is developing a suitability check for individuals to become a tax preparer. Until all of the conditions for tax preparer certification are available, the IRS is prohibiting tax professionals from representing themselves as Registered Tax Return Preparers. Even an individual who obtained a provisional PTIN may not use the Registered Tax Return Preparer designation until passing the competency examination and the IRS suitability check.
Anyone who becomes a RTRP is included in the group of tax practitioners subject to provisions in Treasury Department Circular 230. The regulations in this publication continue to apply to CPAs, attorneys, and enrolled agents.
All tax practitioners are required to comply with the advertising and solicitation regulations in Circular 230. An amendment to the publication requires that advertising by Registered Tax Return Preparers – whether print, television, or radio – include a disclaimer that "The IRS does not endorse any particular individual tax preparer. For more information on tax return preparers go to IRS.gov."
IRS Circular 230 Disclosure
Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.
Article Source: http://www.articlesbase.com/taxes-articles/irs-restrictions-on-use-of-registered-tax-return-preparer-designation-4884784.html
About the Author
No comments:
Post a Comment