Federal Tax Return Preparer Registration

Updated April 26, 2012

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Requirements for Federal Tax Return Preparers

All preparers who prepare Federal tax returns are now subject to IRS oversight. These include obtaining a PTIN, registering and paying an annual fee, passing a competency test, and fulfilling yearly continuing education requirements.

To get an overview of the requirements for each type of Federal tax return preparer such as CPAs, EAs, Attorneys, Supervised Preparers, and Non-1040 Preparers, click here.

Testing

All registered Federal tax return preparers who are not a CPA, attorney, Enrolled Agent, a supervised preparer, or do not prepare individual 1040 returns must pass a competency test. Those that are already registered have until the end of 2013 to pass the test.

The test is based on Tax Year 2011 tax law.
The IRS has provided a list of recommended study materials on the IRS website.
The testing fee is $116 and is paid at the time you schedule a test appointment at a Prometric testing site.
To schedule a test appointment you must log-in to your IRS PTIN account at www.irs.gov/ptin. Once you have logged into your account select “View Next Steps and Outstanding Requirements” from the Main Menu (it is the third option under Functions on the left hand side of the Main Menu screen).
The test consists of 120 multiple choice / true or false questions and will take up to two and a half hours.
A passing score is 350 or above.
You will receive your test results before you leave the testing site.
The test is available in English only.

The IRS provides a Candidate Information Booklet that gives detailed information on:

Test center procedures and regulations
Examples of test questions
What each section of the test covers
Explanation of test results
Overview of areas of tax law and ethics the test will cover
Procedures and possible fees involved if you need to reschedule a test appointment

To watch a short video on what to expect when you go to take the test see the “Taking the IRS Registered Tax Return Preparer Test at Prometric” video.

Continuing Education

All registered Federal tax return preparers who are not a CPA, attorney or Enrolled Agent must complete 15 hours of continuing education each year.

The continuing education requirements begin this year (2012) and must be met by December 31, 2012. They also must be completed even if you have not completed the testing requirement.

The 15 hours of continuing education must include:

2 hours of ethics
3 hours of Federal tax law update
10 hours of other Federal tax law

Also, the continuing education requirements do not apply to certain supervised preparers and preparers who do not prepare individual 1040 returns.

Background Check (Fingerprinting)

As part of the IRS oversight of registered Federal tax return preparers, the IRS will be performing a background check on all registered tax return preparers.

At the present time, the IRS is evaluating which method or combination of methods is best to perform the background check. This means that the original fingerprint requirement has been put on hold until the IRS has completed their evaluation.

The IRS will most likely not be implementing the background check requirement until sometime in 2013. Whenever this requirement is implemented, registered Federal tax return preparers will have two years to complete the background check.

2012 PTIN Renewal

The Renewal Fee is $63
The renewal is for calendar year 2012 (January 1 – December 31, 2012). This is regardless of when you renew during 2012.
Renew using your IRS PTIN account that you originally set up when you originally registered or obtained a PTIN for 2011.

Other Things You Need to Know About Being a Registered Federal Tax Return Preparer

For a detailed definition of a Supervised Preparer and a Non-1040 Preparer see the IRS Fact Sheet.
All registered Federal tax return preparers are now subject to the Circular 230 regulations which govern practice before the IRS. Review Circular 230.
Regulations and Revenue Procedures Governing Registered Federal Tax Return Preparers are available on the IRS website.

Helpful IRS Webpages for Requirements for Federal Tax Return Preparers

Testing

Continuing Education

Important Updates

Registered Tax Return Preparer Testing

Continuing Education Reminder for Registered Return Preparers

Update on Testing for Registered Tax Return Preparers