IRS Releases Initial Tax Preparer Test Results8931588

The IRS has finally released results for the early participants in the registered tax return preparer examination process. The test was first available last November and some eager individuals enlisted right away.

Tax professionals who received or renewed a Preparer Tax Identification Number (PTIN) by December 31, 2011, have until the end of 2013 to take the test. However, they cannot use the designation of Registered Tax Return Preparer until meeting all the requirements - including a passing score on the RTRP exam.

According to the IRS, the tax preparer test was in a calibration phase following its implementation. This permitted validation of testing questions and setting a scoring system. This phase has established a perfect score of 500 for the 120-question exam. A passing score is 350 - which, of course, is 70 percent. 15 hours continuing education credit for tax preparer RTRP

Test takers recently received letters confirming whether they passed or failed the competency test. For those with passing scores, the only additional step toward obtaining tax preparer certification is the tax compliance check. This requires an individual to have filed all tax returns by the deadline and paid all tax due. The intended fingerprint process has been temporarily suspended.

The IRS estimates completion of the tax compliance measures within a few weeks. Individuals who pass the competency exam and tax compliance check will receive an RTRP certificate by regular mail. 15 hours continuing education credit for tax preparer RTRP

Tax professionals must also complete 15 hours of tax CPE courses annually. This is mandatory for renewing a PTIN. The education requirement begins for 2011 - even for individuals with PTINs who have until then end of 2013 to pass the RTRP test. Individuals who pass the exam in the registration year (2012) can prorate the hours they must take: one hour per month they are registered, plus two hours of ethics.

More than 260 Prometric testing sites are presently available. Tax practitioners with PTINs can register for the tax preparer exam using their online account and paying the $116 fee. Anyone taking the test after April 16, 2012, will receive immediate results upon completion. Testing is suspended for two weeks beginning April 1, 2012.

Some individuals in the tax preparation industry are exempt from having to pass the tax preparer competency examination. Such professionals must possess credentials as Certified Public Accountants, licensed attorneys, or Enrolled Agents. Also exempt are workers who are supervised by these professionals and do not sign tax returns.

The IRS has noted that the process to become an enrolled agent is unchanged. A different test is required for registration as an Enrolled Agent with the IRS. This Special Enrollment Examination has three parts. In addition, enrolled agents continue having a continuing education requirement of 72 hours every three years.

IRS Circular 230 Disclosure

Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.

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