Unlicensed Tax Preparers - Testing

[zeros]

In talking to one of the major tax software companies, I inquired whether they would be offering any courses to assist in passing the upcoming test for unlicensed tax preparers. They indicated that they would not be, but mentioned that the test was just a test of basic tax knowledge and anyone with a few years experience in preparing tax returns should have no problem passing the test. Has anybody else heard anything about the complexity of this test?

[Bees Knees]

That is a bunch of baloney.

Back in the 80’s, I had that same attitude about passing the EA exam. I had several years of tax prep experience and thought I could just walk in and pass the EA exam based on experience.

I failed several times until I finally decided to study for the exam. You can bet the registered tax preparer exam will be no different. Maybe not as comprehensive as the EA exam, but it is still going to require some study.

IRS has not yet released guidance on what specifically will be on the exam. When they eventually do, you can be sure that publishers like TheTaxBook will come out with self study books on how to pass the test.

[Gary2]

One thing I've seen is Pub. 4832. The appendix has a list of forms for each of the two exams, but I believe these are just recommendations, not official.

[taxxcpa]

Complexity

In talking to one of the major tax software companies, I inquired whether they would be offering any courses to assist in passing the upcoming test for unlicensed tax preparers. They indicated that they would not be, but mentioned that the test was just a test of basic tax knowledge and anyone with a few years experience in preparing tax returns should have no problem passing the test. Has anybody else heard anything about the complexity of this test?

One of the things I've noticed in a lot of CPE courses is that they ask a lot of questions about dollar amounts for exemptions, standard deductions, credit maximums, etc. which you really don't need to know to prepare a return with software which has these figures built in. This lessens the focus on things like who qualifies for an exemption, what kinds of taxes or interest might qualify for Schedule A, or what is necessary to qualify for a credit.

Hopefully the test will be more about the tax rules rather than on memorizing dollar amounts.

[JohnH]

I'd like to see a test which completely omits all the arcane rules about EIC. I'd be willing to sign a statement promising never to prepare a return claiming EIC in exchange for not having to memorize all that nonsense.

[Gene V]

Testing

Some information on testing from IRS web site

http://www.irs.gov/taxpros/article/0,,id=218611,00.html#Testing