Tax Return Preparers Exam Articles Series # 6 When Should You Take the IRS Exam? - Matters Regarding
Depending on whether you register to obtain a PTIN before the initial test offering date (extended to April 18, 2012) or after the initial test offering, the answer to the question "when should you take the IRS exam?" will be different.
In this article, I will walk you through the analysis of the requirement you need to meet, depending on whether you have a provisional PTIN or not, before the initial test offering date.
Registering and obtaining a PTIN before the competency examination, which begins in the Fall 2011, allows you the following options:
• You can renew your provisional PTIN up until December 31, 2013.
• You have time until December 31, 2013 to take the Competency Examination. After that you must register for a new PTIN to meet the requirements to take the exam.
• You do not have to comply with continuing education requirement during the transition period (Jan1, 2011 to Dec 31, 2013).
• You are subject to applicable duties and restrictions relating to practice before the IRS under Circular 230 during the transition period and after you become a RTRP.
• You must never engage in disreputable conduct under Section 10.51 of Circular 230.
• Your provisional PTIN may be revoked by the IRS if you violate Circular 230 duties and restrictions before, or after you become a RTRP.
If you obtain your PTIN after the initial test offering date, you have to meet all requirements to become a Registered Tax Return Preparer if you propose to continue to practice as a tax return preparer.
The requirements you must meet are:
• Obtain a PTIN by applying to the IRS and renew that PTIN annually.
• Submit fingerprints to the IRS for a background and tax compliance check.
• Pass the competency exam.
• Take continuing education courses annually.
Because many of the details about the competency examination have not yet been released by the IRS, at the time this article was written it is not clear if there is an expiration date to meet each requirement or if there is a specific sequence you should follow in meeting these requirements. Example, suppose you meet all requirements except the competency examination, how long will it be before the validity of all the previous steps you took expire?
These and other questions are relevant to when you should take the competency examination, but there are no answers yet to them because we are in the beginning of their implementation stage. For sure, over time, the IRS will release the necessary information about them and we will have our questions answered.
Hopefully in time all those new rules the IRS is launching to enhance oversight over the tax preparation industry will create a positive impact on the overall industry. And hopefully, a more valuable and prestigious tax return preparer career will be enhanced by the through competent and ethical performance.
New rules always yield controversial reactions. The competency examination is part of the new rules of the game and it should get your attention. It takes time to prepare for any competency or certification exam and usually the preparation process is expensive in time and money.
Having the right material, the right plan and the right attitude is crucial to pass any exam. It will spare you as a candidate to the IRS exam from going from failure to failure and spending a lot of money.
Read the next articles of this series: Where you Shoud take the IRS exam?
Be proactive and take the first step in being informed about what is involved in the process of preparation and examination of the IRS competency examination. Visit http://1040examprep.com/blog/
In this article, I will walk you through the analysis of the requirement you need to meet, depending on whether you have a provisional PTIN or not, before the initial test offering date.
Registering and obtaining a PTIN before the competency examination, which begins in the Fall 2011, allows you the following options:
• You can renew your provisional PTIN up until December 31, 2013.
• You have time until December 31, 2013 to take the Competency Examination. After that you must register for a new PTIN to meet the requirements to take the exam.
• You do not have to comply with continuing education requirement during the transition period (Jan1, 2011 to Dec 31, 2013).
• You are subject to applicable duties and restrictions relating to practice before the IRS under Circular 230 during the transition period and after you become a RTRP.
• You must never engage in disreputable conduct under Section 10.51 of Circular 230.
• Your provisional PTIN may be revoked by the IRS if you violate Circular 230 duties and restrictions before, or after you become a RTRP.
If you obtain your PTIN after the initial test offering date, you have to meet all requirements to become a Registered Tax Return Preparer if you propose to continue to practice as a tax return preparer.
The requirements you must meet are:
• Obtain a PTIN by applying to the IRS and renew that PTIN annually.
• Submit fingerprints to the IRS for a background and tax compliance check.
• Pass the competency exam.
• Take continuing education courses annually.
Because many of the details about the competency examination have not yet been released by the IRS, at the time this article was written it is not clear if there is an expiration date to meet each requirement or if there is a specific sequence you should follow in meeting these requirements. Example, suppose you meet all requirements except the competency examination, how long will it be before the validity of all the previous steps you took expire?
These and other questions are relevant to when you should take the competency examination, but there are no answers yet to them because we are in the beginning of their implementation stage. For sure, over time, the IRS will release the necessary information about them and we will have our questions answered.
Hopefully in time all those new rules the IRS is launching to enhance oversight over the tax preparation industry will create a positive impact on the overall industry. And hopefully, a more valuable and prestigious tax return preparer career will be enhanced by the through competent and ethical performance.
New rules always yield controversial reactions. The competency examination is part of the new rules of the game and it should get your attention. It takes time to prepare for any competency or certification exam and usually the preparation process is expensive in time and money.
Having the right material, the right plan and the right attitude is crucial to pass any exam. It will spare you as a candidate to the IRS exam from going from failure to failure and spending a lot of money.
Read the next articles of this series: Where you Shoud take the IRS exam?
Be proactive and take the first step in being informed about what is involved in the process of preparation and examination of the IRS competency examination. Visit http://1040examprep.com/blog/
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