Federal Tax Return Preparer Registration: Navigating Final Regulations

Outline

1. Background on state and federal return preparer registration
   1. IRS June 2009 announcement of intent to regulate preparers
   2. IRS January 2010 release of report with recommendations
   3. Aug. 19, 2010 proposed administrative regs and plans for online PTIN system
2. What was previously resolved with registration process
   1. Process to register for and obtain a PTIN
      1. Criminal background checks
   2. Competency testing and continuing education for non-federally authorized tax practitioners
   3. Exemption for CPAs, attorneys and enrolled agents who are active and in good standing with licensing agencies
   4. Potential costs
      1. IRS registration fee and program vendor fee
      2. Competency test charge
      3. Potential fines for non-compliance
3. Key terms of finalized Circular 230 regulations (T.D. 9527) and Notice 2011-45
   1. Plain-language summary of requirements
   2. Adoption of the term “registered tax return preparer”
      1. Some restrictions on individuals with a provisional PTIN
   3. Circular 230 advertising and solicitation rules
      1. Required advisory statement in all ad materials
   4. Circular 230 provisions on practitioner conduct and discipline
   5. Continuing education requirements postponed for at least first year of preparer registration, which started Sept. 30, 2010
      1. Qualifications for education providers
      2. No IRS pre-approval of individual continuing ed programs
   6. No delay of competency testing requirements
   7. No additional exemption for non-signing preparers beyond Notice 2011-06
4. Actions to consider now in response to the new regulations

Benefits

The panel will analyze these and other key areas:

• The registered return preparer designation: Who meets it, who needs to obtain a PTIN and register, and how to get the PTIN.
• Continuing education requirements: How soon they'll apply, and what the IRS decision not to pre-approve courses means for advisors.
• Circular 230 advertising and solicitation restrictions: What your firm can and can't do.
• Competency testing: How soon to expect the first exam and what it might include.

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.