New Tax Preparer Test Explained - YouTube video text script
Hi, I’m David Williams and I’m the director of the IRS’ return preparer office. I’m here today with a message about the registered tax return preparer test.
As you may know, the IRS is implementing significant changes for the tax preparation industry.
For example, anyone who is paid to prepare federal tax returns must register with the IRS, obtain a preparer tax identification number, and renew that PTIN annually.
But certain tax return preparers must take additional steps including passing a competency test and completing 15 hours of continuing education every year.
So far we know of about 350,000 return preparers who must take the new test.
Although you have until December 2013 to pass it, I want to urge you to take it sooner rather than later.
If you wait, because there are so many of you, it may be difficult to schedule a convenient time and location.
Also, the IRS is working to launch a public database of all tax return preparers before the next filing season. The database will not only list the names of all return preparers, but also each person’s credentials.
So set a goal of having the registered tax return preparer credential, or better yet, the enrolled agent credential, beside your name before next filing season.
To find out if you need to test and to schedule an appointment, simply log into your PTIN account at www.irs.gov/ptin. Click on "view next steps and outstanding requirements".
You are exempt if you are a certified public accountant, an attorney or an enrolled agent. You are also exempt if you are a non-signing preparer supervised by a CPA, attorney or enrolled agent in a law firm, an accounting firm, or a firm owned by enrolled agents. If you do not prepare any form 1040 series returns, you are also exempt.
If you do have a test requirement, you must take the exam at one of our test vendor Prometric’s 260 testing centers. The fee is $116. You must only pass it once. For study materials, test specifications, test locations and other details, go to www.irs.gov/taxpros/tests and select the RTRP test.
If you need to brush up on your testing skills, and I encourage everyone to do that, you can also take a test preparation course. If you take one from an IRS-approved continuing education provider, you can also earn CE credit at the same time. Once you have passed the test and a tax compliance check you will be sent your Registered Tax Return Preparer certificate.
Recently, I received an email from a tax preparer named Ken. Ken was initially apprehensive about the test but he studied diligently. “I can honestly say,” he wrote me, “that I am much more knowledgeable now than I was several months ago.
Studying for this test was of immense value to me.”
And, that, ladies and gentlemen, is our shared goal – improving tax administration and service to taxpayers.
Thanks for watching.