what is penalty if you fail to take RTRP test

Since no one with a valid PTIN has to take the exam until 12/31/13, there is no imposed penalty. I have a strong doubt, however, that you can act as a representative on any return you have prepared.

Even though no one has to take the test until 12/31/13, a person who prepares at least one tax return for compensation during 2013 must have a valid PTIN, and that means having taken the 15 hour CE requirement before they renew their PTIN. for compensation without a valid PTIN.

There might be an exception for nonsigning, supervised preparers.

But your existing PIN number is valid for 2013 if you pay the $64 annual fee, so are you saying you cannot use it to file tax returns? Where is the actual regulation text?

annual fee, so are you saying you cannot use it to file tax returns? Where is the actual regulation text?

Are you trying to ask, what is the refund policy of the IRS if you apply and pay for 2014 calendar year PTIN (tax year 2013) but don't meet the other requirements? I would suppose the application will contain a check process to confirm you have met the all the requirements before accepting your payment. Otherwise, I think your payment would not be refunded since the IRS would claim it covers processing costs, whether your application is successful or not.

Your original post (OP) had me confused with the dates you used. If you go out of business on 12/31/2013, what is the problem? Tax year 2013 will be filed in calendar year 2014, this would be the first year that a penalty might apply. Which year are you asking about? Maybe you could provide a scenario with specific future dates to help me (and perhaps others) better understand the question.

The penalty is already in place, I think:

Failure to furnish the identifying number of the preparer on the return. $50 per return. Maximum $25,000 per year. Sec. 6695(c)

To me, an invalid PTIN is the same as no PTIN (failure to furnish).

I thought in order to obtain a 2013 PTIN, a non-legacy preparer needs to certify that the 15 hours of CE have been or will be completed by year end 2012.

If you already have a PTIN, you have until 12/31/2013 to take the test. If you are a new tax preparer you have to do the test by 12/31/2012.

And if you already have a PTIN, in order to renew it and use it on returns that you prepare in 2013 you do have to complete the 15 hours of CE by 12/31/12, even though you have until 12/31/13 to take the RTRP test.

Bob Sandler

Return Preparer Regulations

Bob Sandler