Q&a Irs Unenrolled Preparers Regulations

[taxea]

https://www.irs.gov/taxpros/article/0,,id=218611,00.html

[erchess]

Thank You

I didn't know that the enrolled were going to be subject to a new registration fee. Does anyone know how much it is going to be?

[taxdude71]

Are you surprised? Another dollar grab.

[taxea]

Not the way I read it. The new regulations apply to unenrolled preparers,

[taxmom34]

i haven't seen in this new proposal how many paid tax returns a preparer is allowed. in my case, i have been downsizing, cause i want to retire for 2010. the current tax year i have 18 returns, 13 is family and only 5 are friends who pay me. next year i will definitely will have less, i will only be doing immediate family, but , now i need to find out if i need to take this test. i have two clients who won't let me say no, so i did them again this year, i think i will have to die for them to go elsewhere.

[New York Enrolled Agent]

Not the way I read it. The new regulations apply to unenrolled preparers,

The proposed IRS requirements apply to ALL signing preparers. ALL signing preparers will register and pay a fee.

Unenrolled preparers will be further required to pass a competency test and take 15 hours of CE on an annual basis.

C230 practitioners are exempt from the compentency test and the 15 hour requirement due to the fact that they have already demonstrated competency to the IRS (enrolled agents) or to the states (attorneys and certified public accountants) and have varying current requirements for CE.

[sea-tax]

The proposed IRS requirements apply to ALL signing preparers. ALL signing preparers will register and pay a fee.

Unenrolled preparers will be further required to pass a competency test and take 15 hours of CE on an annual basis.

C230 practitioners are exempt from the compentency test and the 15 hour requirement due to the fact that they have already demonstrated competency to the IRS (enrolled agents) or to the states (attorneys and certified public accountants) and have varying current requirements for CE.

NYEA
Are saying that the enrollment form and fee that us EA'S already pay will not be enough. We will have to pay and register again, in effect paying two fees and two sets of registration.
Or will the fact that every three years we already have a fee and registration process will be enough.
Why do they always have to make everything so difficult. Why not just make those who want to prepare individual returns take part 1 and 3 of the SEE exam and those who want to prepare business returns take all three parts.
I don't understand why they need to create another exam and another process when the one they have is already functional and in place. To me it is a no brainer.

[taxdude71]

Way I read it, looks like they are going to charge for the PTIN. Which is required to file returns. Sounds like they're going to get everyone.

[New York Enrolled Agent]

NYEA
Are saying that the enrollment form and fee that us EA'S already pay will not be enough. We will have to pay and register again, in effect paying two fees and two sets of registration.
Or will the fact that every three years we already have a fee and registration process will be enough.

Yes there will be two different fees.

From the IRS:

Enrolled agents currently pay $125 for enrollment and renewal. Attorneys and certified public accountants pay similar fees to their oversight organizations. Will the new IRS registration fee be applicable to all enrolled agents, attorneys, and CPAs in addition to their other fees?

Yes. All signing paid tax return preparers will have to pay a fee to register (and renew) as return preparers and to obtain PTINs. This fee is in addition to any fee paid tax return preparers must pay for any other certifications or licenses they hold. Because they are exempt from testing, attorneys, CPAs, and enrolled agents would not be required to pay the separate testing fee.

[AZ-Tax]

So are the HRB and JTX etc. preparers exempt again?

From what I read, if you prepare taxes for an HRB, JTX etc. but the taxpayer pays HRB (and not the preparer), the HRB preparer is exempt from the fees and the exams, please tell me I am incorrect?

[taxea]

CPAS, EAS and ATTYs that are already registerd with the IRS are not subect to this regulation because we already took the required testing for our license and are already subject to registration and renewal fees. This regulation is for those paid preparers that are not in the above catagories.

I have followed this closely because I have seen so many bad preparers over the years that I think it is about time the IRS/Congress is dealing with this issue.

Joseph-re the HRB etc preparer issue, I have heard the same thing. The regulation does specify all unenrolled paid preparers and they will be required to acquire a PTIN. They do file under the employer EFIN. So I am not sure about this rumor, however, I do intend to research it and hope that it is not true. I will post the results of my research.

[DonPriebe]

Logic doesn't count - they want the money.

CPAS, EAS and ATTYs that are already registered with the IRS are not subject to this regulation because we already took the required testing for our license and are already subject to registration and renewal fees. This regulation is for those paid preparers that are not in the above categories.

You are partially correct - because we have already taken the required testing, the portions of the new regulation that concern testing do not apply to us. If there is a special fee to take the new test, we probably would not have to pay it.

But, there will be a new fee to get and/or renew our TPIN number (yes, that's redundant.) And only those who have passed the new test or are exempt from it (EA/CPA/Atty) will be allowed to pay it. It's a federal tax on being in the tax preparation business.

New York is already collecting an annual fee for the privilege of preparing NY returns. And while they exempt CPAs and Attys from the fee, EAs have to pay it. But we do get a NYTPRIN and a fine looking .pdf certificate.

[taxea]

Can you give me your source that says CPA/EA/ATTY who are already registered have to pay for "new PTIN" as well as our EA, etc, renewal....I missed that completely.

[sea-tax]

What if you already have a PTIN and an EFIN number? You still will have to re-register?

I mean this is not a huge deal but the logic of this just astounds me.

[BP.]

Can you give me your source that says CPA/EA/ATTY who are already registered have to pay for "new PTIN" as well as our EA, etc, renewal....I missed that completely.

From link in your OP

"Enrolled agents currently pay $125 for enrollment and renewal. Attorneys and certified public accountants pay similar fees to their oversight organizations. Will the new IRS registration fee be applicable to all enrolled agents, attorneys, and CPAs in addition to their other fees?

Yes. All signing paid tax return preparers will have to pay a fee to register (and renew) as return preparers and to obtain PTINs. This fee is in addition to any fee paid tax return preparers must pay for any other certifications or licenses they hold."