IRS Compentency Exam

[gkaiseril]

I am in NJ - I have a few (about 8) NY [multi-state] returns I prepare. Last year the limit was 10 returns before I would have to pay the $100 fee. Will that change for the 2010 season?

That is a question for New York.

This registration, fee, and exam is an IRS issue and independent of New York's registration fee for electronic filing.

To prepare more than 10 federal forms, you need to have a PTIN, pay the IRS fee, and pass the exam.

[gkaiseril]

So when do the IRS employees have to take their Compentency Exam?

When they sign the returns they prepare for others as paid preparers or report on their Schedule C that they were paid for preparing. Just as they currently sign the returns and report that extra income.

[MAJ]

PTIN - Credits & Costs - Oh my...

I don't remember having to pay for the original PTIN. My understand, at the moment, is that if you have a PTIN it may be reissued upon registration. If you are an EA there will only be your renewal fee.
If you are not an EA (already registered with the IRS) the cost is for the registration which will include a PTIN. Registration is set up for Sept to the end of the year. You will not be able to file tax returns without the PTIN in 2011.
The next step is the exam which you have at least a couple of years to take. My suggestion is that you get the PTIN and register, then take the courses for CPE credit (be sure they include the courses the IRS is requiring) and take the exam.
Once you have done this, you will be required to take 15hrs of CPE courses each year.

I'ze be havin my PTIN thingy for about 2 years now... Didn't want my SS# on the returns any more cauz I was a identify theft victim. An illegal used my SS# for 12 years before I caught his sorry @$$..... Last laugh was on him.. He got charged with obtaining a job with a false identify. No INS - Nothing for the dozens of accounts he had open.. Nada!
But us - We do something suspicious & the IRS will feed us to the lions!! Nice!!

As for the tezt. I be ready for that soon.. Bin studying hard! Got my TaxBook... Didn't sign up for no classes yet cauze I want to see if the teacher is Pretty!!

Did I mention I'm glad it's Friday and nope! Didn't have the Brewsky yet!!

Enjoy!

[Lion]

NY Info

We're waiting on the governor to sign or not or veto the recently passed bill exempting EAs as they do CPAs and attorneys. The following is from NY's web site:

Who must register & pay

Generally, you must register if you do one or both of the following:

* prepare New York State income tax returns in 2010 as a tax return preparer.
* help to issue or administer a refund anticipation loan or refund anticipation check

You must pay a $100 registration fee if you are a tax return preparer who:

* was paid to prepare 10 or more New York State tax returns in 2009, and will prepare at least one personal income tax return in 2010; or
* will be paid to prepare 10 or more tax returns for 2010.

If you are required to register, you do not have to pay the $100 registration fee if you are:

* a tax return preparer who does not meet the 10 return requirement (either prepared 10 last year or plan to prepare 10 this year), or
* a facilitator who only registered because you help to issue or administer a refund anticipation loan, or refund anticipation check.

See our more information page to learn about registration exemptions.

[New York Enrolled Agent]

We're waiting on the governor to sign or not or veto the recently passed bill exempting EAs as they do CPAs and attorneys. .

The bill exempting enrolled agents from the NYS registration process passed both the NYS Senate and Assembly. The bill was delivered to the governor on July 19. Hopefully, the governor will sign it. If he takes no action, the bill becomes law after 10 days.

[erchess]

Think Twice

I think everybody should consider raising fees next year - maybe more than you ordinarily would think of as a normal year's increase. It's a simple matter of supply and demand.

We're in an environment where the number of self prepared returns has been increasing year over year for some time.

I cannot remember if it is two or three years before people who can't pass the test have to stop signing returns and of those who do stop it remains to be seen how many will try to do returns without signing them, how the public will respond to these people, and how the taxing agencies will respond to these people.

Of course natural attrition (death, retirement, and enforcement) should continue to take out the same number of preparers each year that they do now and at some point (upcoming season or next?) there won't be new untested competitors entering the market.

Another thing you have to consider is that imho the IRS LIKES having plenty of tax professionals and if so then there are limits to how many they are going to be willing to chase away.

Another factor to think about for those of us who are already enrolled is whether the public will perceive our credentials to be better than those of the newly tested and if so how much more who will be willing to pay us than them.

Weighing all this I think it will be 2015 before there is enough reduction in the number of preparers to alter what we can charge and I'm not sure it will happen then. I'd love to hear counter arguments. And btw I am even now raising my fees but only because of inflation and the fact that I have been charging less than the market will bear.

[DonPriebe]

Confused in NY

Original quote from June 11

New York Bill Exempting EAs from Tax Preparer Registration Passes State Senate
In a piece of great news for New York enrolled agents and enrolled agents throughout the country, on June 7 the New York Senate passed S. 5710A (by a vote of 58 to 0). The bill would remove enrolled agents from the tax preparer registration requirement, which E@lert has covered at length. The Assembly has already passed the bill and accordingly will send the bill to Governor David Paterson for his signature. The governor is expected to sign the bill, particularly given the strong legislative support for it. The New York State Society of Enrolled Agents should be commended for their constant efforts on this issue.

But then from July 24 ...

The bill exempting enrolled agents from the NYS registration process passed both the NYS Senate and Assembly. The bill was delivered to the governor on July 19. Hopefully, the governor will sign it. If he takes no action, the bill becomes law after 10 days.

Unfortunately, the NYS legislative website says

STATUS:
A8595 McDonough Same as S 5856 HANNON
Tax Law
TITLE....Defines enrolled agents and excludes them from the definition of tax return preparer

05/29/09 referred to ways and means
01/06/10 referred to ways and means
07/01/10 held for consideration in ways and means

Why would a bill be held in committee after it had already been passed?

[New York Enrolled Agent]

Why would a bill be held in committee after it had already been passed?

I'm not sure where you looked but here is the latest update from the assembly

Relates to the definition of tax return preparer; enrolled agents.
A8556A Actions
A8556A - DELIVERED TO GOVERNOR - Jul 19, 2010
A8556A - PASSED SENATE - Jun 7, 2010
A8556A - RETURNED TO ASSEMBLY - Jun 7, 2010
A8556A - 3RD READING CAL.563 - May 27, 2010
A8556A - PASSED ASSEMBLY - May 26, 2010
A8556A - DELIVERED TO SENATE - May 26, 2010
A8556A - REFERRED TO FINANCE - May 26, 2010
A8556A - AMENDED ON THIRD READING (T) 8556A - Apr 26, 2010
A8556A - DIED IN SENATE - Jan 6, 2010
A8556A - RETURNED TO ASSEMBLY - Jan 6, 2010
A8556A - ORDERED TO THIRD READING CAL.608 - Jan 6, 2010
A8556 - REFERRED TO RULES - Jun 18, 2009
A8556 - delivered to senate - Jun 17, 2009
A8556 - ordered to third reading rules cal.447 - Jun 17, 2009
A8556 - passed assembly - Jun 17, 2009
A8556 - reported - Jun 17, 2009
A8556 - reported referred to rules - Jun 17, 2009
A8556 - rules report cal.447 - Jun 17, 2009
A8556A - REPORTED - Jun 17, 2009
A8556A - RULES REPORT CAL.447 - Jun 17, 2009
A8556A - ORDERED TO THIRD READING RULES CAL.447 - Jun 17, 2009
A8556A - PASSED ASSEMBLY - Jun 17, 2009
A8556A - DELIVERED TO SENATE - Jun 17, 2009
A8556 - referred to ways and means - May 28, 2009
A8556A - REFERRED TO WAYS AND MEANS - May 28, 2009

[dtlee]

Don was looking at the old bill, the one which gave Enrolled Agents the same status as H&R Block receptionists (which I could never understand why we were supposed to like). The bill that is awaiting signature is the one that gives Enrolled Agents the same status as a CPA.

[DonPriebe]

Don was looking at the old bill, the one which gave Enrolled Agents the same status as H&R Block receptionists (which I could never understand why we were supposed to like). The bill that is awaiting signature is the one that gives Enrolled Agents the same status as a CPA.

Multiple bills! Thank you for clearing up my confusion.

Don