Preparer Registration

The Internal Revenue Service (IRS) is rolling out a comprehensive program to regulate the tax preparation industry and ensure that certain standards of professional conduct are met. Starting in 2014, any individual who is paid to prepare federal income tax returns must have a preparer tax identification number (PTIN) issued by the IRS and, unless exempt, must pass a competency exam and suitability check to be considered a Paid Tax Return Preparer (PTRP). CPAs and other tax professionals (enrolled agents, attorneys) are exempt from the exam and continuing education requirements but must undergo a portion of the suitability check. The AICPA has participated actively in the development of the regulations to implement this program - intended to elevate complaince for paid preparers - to minimize its impact on members who are already subject to state and federal regulation.

The Internal Revenue Service (IRS) is rolling out a comprehensive program to regulate the tax preparation industry and ensure that certain standards of professional conduct are met. Starting in 2014, any individual who is paid to prepare federal income tax returns must have a preparer tax identification number (PTIN) issued by the IRS and, unless exempt, must pass a competency exam and suitability check to be considered a Paid Tax Return Preparer (PTRP).

CPAs and other tax professionals (enrolled agents, attorneys) are exempt from the exam and continuing education requirements but must undergo a portion of the suitability check.

The AICPA has participated actively in the development of the regulations to implement this program - intended to elevate complaince for paid preparers - to minimize its impact on members who are already subject to state and federal regulation.


The Fundamentals

WHAT'S NEW?

Suitability Checks: The IRS' proposal to require fingerprinting (CPAs would be exempt) as part of a suitability check continues to be on hold while the IRS considers alternatives.

Regulations: The IRS issued proposed regulations that generally incorporate an earlier notice in establishing the rules of the program. This notice is positive in that it exempts the supervised staff of CPA firms and certain other professional firms from taking a written exam or needing to obtain IRS continuing education requirements. However, the AICPA expressed concerns about the regulations' broad definitions of a tax return and claim for refund and urged the IRS to conform them with Title 26 to prevent accidental noncompliance.

Tax Practitioners' Toolkit: A wide range of materials to help you reinforce your value as a CPA - includes talking points for overcoming objections to hiring a CPA and a short presentation highlighting the differences between CPAs and unlicensed preparers.

The Fundamentals

How to Renew your PTIN

Overview of Requirements

PTIN Procedures Detailed (Jan. 2012 article)

Frequently Asked Questions

Background of program – IRS Commissioner Report (2009)


	Advocacy The AICPA has testified and provided several written comments on various components of the program, including fingerprinting, the competency exam, and continuing education providers. AICPA Testifies about IRS Fingerprinting Proposal at Hearing (October 6) AICPA Offers Recommendations on Competency Exam for Registered Preparers Did the IRS Get it Right? AICPA Tax Vice President Edward S. Karl blogs on this question

	AICPA Resources Overview of regulations – In-depth article in The Tax Adviser that provides background on the launch of the IRS' Return Preparer Review initiative in April 2009 Tax Practitioners' Toolkit – a one-stop shop for materials to help you communicate with current and potential clients and reinforce your value as a CPA. The toolkit includes: brochures and presentations on 2011 tax provisions affecting individuals and small businesses a presentation that outlines the differences between CPAs and other preparers print advertisements, and messages to add to your website or newsletter that showcase your value

AICPA Resources

Overview of regulations – In-depth article in The Tax Adviser that provides background on the launch of the IRS' Return Preparer Review initiative in April 2009
Tax Practitioners' Toolkit – a one-stop shop for materials to help you communicate with current and potential clients and reinforce your value as a CPA. The toolkit includes:
- brochures and presentations on 2011 tax provisions affecting individuals and small businesses
- a presentation that outlines the differences between CPAs and other preparers
- print advertisements, and
- messages to add to your website or newsletter that showcase your value

	News and Articles IRS Fingerprinting Delayed (Journal of Accountancy) Practitioners Raise Concerns About Fingerprinting Proposal at IRS Hearing (Journal of Accountancy) IRS Finds 100,000 Preparers Did Not Comply with PTIN Rules (The Tax Adviser)

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