New Laws for Tax Preparers On the Drawing Table

Registration -

All tax return preparers will be required to register with the IRS and pay a registration fee, before being able to sign a federal tax return as a paid tax professional.

Target date for online registration systems is September 1, 2010.

A PTIN will also be necessary for all registered tax preparers.

Competency Testing -

Tax preparers who are NOT, Attorneys, CPAs or Enrolled Agents, will be required to take and past a competency test.

The target date for the competency test to be available is May 1, 2011. There will be two levels of competency testing.

Level 1. Will deal with wage and non business Form 1040 Series, including, Schedule A, and Schedule D

Level 2. Will include testing for wage and small business forms, including Schedule C, F and Schedule SE.

Continuing Education -

Tax preparers who are NOT Enrolled Agents, CPAs, or Attorneies, will be required to complete 15 hours of continuing education, each year.

* Federal tax law updates (3 hours)
* Tax ethics - 2 hours
* Other federal tax law topics - 10 hours