Registered Tax Return Preparer & PTIN & EFIN

To promote the effective and efficient administration of the electronic filing requirement in section 6011(e)(3), proposed § 301.6011?6(a)(3) provides a transition rule for 2011, based upon the number of individual income tax returns a tax return preparer reasonably expects (if the preparer is a member of a firm, the preparer?s firm members in the aggregate reasonably expect) to file, to permit the IRS and affected tax return preparers sufficient time to prepare for and implement the requirement of section 6011(e)(3) and proposed § 301.6011?6. Beginning January 1,

2011, tax return preparers who reasonably expect to file (if a preparer is a member of a firm, the firm?s members in the aggregate reasonably expect to file) 100 or more individual income tax returns in calendar year 2011 are specified tax return preparers who are subject to these regulations in 2011. Beginning January 1, 2012, tax return preparers who reasonably expect to file (if a preparer is a member of a firm, the firm?s members in the aggregate reasonably expect to file) 11 or more individual income tax returns in a calendar year are specified tax return preparers who are subject to these regulations for that calendar year.

If you are a paid tax return preparer, each year you must renew your PTIN.

Since you are not an attorney, CPA or EA, you must also apply and become a RTRP. In addition to your other requirements, that means you must pass a one-time test (IRS released the subjects covered in the test this week) and each ear must take at least 15 hours of continuing professional education, including at least two hours of ethics.

Exception: If you have a PTIN and are employed by an attorney, CPA or EA who signs returns and is responsible for returns which you prepare, you are exempt from becoming a RTRP.

NOTE: If you are an Electronic Return Preparer (ERO) you must have an EFIN.

Everyone who, or whose firm prepares at least 10 tax returns anually for years after 2011 must file electronically and you or your firm would be an ERO or contract through an ERO to file electronically.

Minor quibble: Above you said you were not a tax lawyer. Any attorney in good standing with a state bar regardless of specialiy, is deemed to be exempt from having to become a RTRP.

Does the CA tax preparer education requirement fulfill this requirement? From ctec.org

BEGIN QUOTE

 Must apply for their Certificate of Completion within 18 months after completing their 60 hours of qualifying education from an approved provider.

Must complete, on an annual basis, not less t han 20 hours of continuing education from an approved curriculum provider (12 hours federal, 4 hours California, and 2 hours ethics and 2 hours of either federal or California).

END QUOTE

Yes, and no. Technically, one has to register with the IRS, and the continuing education credits also have to be accepted by them. If the credits count, then yes.

I do not believe passing the CA preparer tests meet the RTRP requirements.

At this time, CA preparers and all other prospective RTRPs must pass the federal RTRP test which the IRS requires. I believe they contracted administration and scoring of this test to Prometrics.

In the future, IRS may have other categories of RTRPs, say small business, large business, trusts & estates, payroll and trust funds, etc.

As of now, the IRS has gone along with a test that examines knowledge of basic 1040 information, and small sole proprietors. The test also includes some ethics and rep work for examination only for tax returns prepared and signed by the RTRP.

I have not read the full requirements for education, but would guess the tax portions must be relevant to federal tax issues, Education relevant only to state issues probably would not count towards the RTRP annual requirement.

Like I said, one still has to register with the IRS.

I didn't say that they were exempt.

That's why I said that only the credits accepted by the IRS counted.