Unregistered Preparers

[Koss]

There should be at least one statistic available early next year that will be very revealing. If the IRS doesn't release it quickly, I would expect NAEA and other groups to begin pressuring for public release of the information.

For 2011, you can't be a legit preparer without having a PTIN. But at this point in time, anyone can get a PTIN, provided they are current on their own taxes, and don't have some other skeleton in the closet, such as a felony conviction for a financial crime.

But beginning next year, you can't get a PTIN, or renew an existing one, unless you pass the test.

It will be interesting to see how many PTINs "fall off" the platform, i.e., are not renewed...

The IRS will probably proudly publish the number of people who pass the new test. But the number of people who don't pass it, who were actually doing taxes professionally the year before, will be a much more interesting number.

That number could become the basis of some very interesting marketing materials.

How about something like...

On January 1, 2012, four thousand tax preparers went out of business... because they didn't pass a basic test required by the Internal Revenue Service. Is your tax preparer registered with the IRS?

BMK

[zeros]

Three Years to Pass?

I had understood that if you had a PTIN previously, then you have 3 years to pass the test. Meaning you can prepare returns for the 2010, 2011, & 2012 without the license. Is this not correct/.

[Koss]

Correct

I had understood that if you had a PTIN previously, then you have 3 years to pass the test. Meaning you can prepare returns for the 2010, 2011, & 2012 without the license. Is this not correct/.

I was not aware of this exception. You are correct. But it appears that that time is running out for those who are currently operating without a PTIN, or with a PTIN that has not been renewed. The IRS website says this:

We expect to have the exam available in mid-2011. If you register and get your new PTIN before the competency exam is available, you will have until the end of 2013 to take and pass the exam. If you delay getting your PTIN until after the online exam is available, you will have to pass the exam before you can get your PTIN and start preparing federal tax returns.

BMK

[kpangelinan]

There should be at least one statistic available early next year that will be very revealing. If the IRS doesn't release it quickly, I would expect NAEA and other groups to begin pressuring for public release of the information.

For 2011, you can't be a legit preparer without having a PTIN. But at this point in time, anyone can get a PTIN, provided they are current on their own taxes, and don't have some other skeleton in the closet, such as a felony conviction for a financial crime.

But beginning next year, you can't get a PTIN, or renew an existing one, unless you pass the test.

It will be interesting to see how many PTINs "fall off" the platform, i.e., are not renewed...

The IRS will probably proudly publish the number of people who pass the new test. But the number of people who don't pass it, who were actually doing taxes professionally the year before, will be a much more interesting number.

That number could become the basis of some very interesting marketing materials.

How about something like...

On January 1, 2012, four thousand tax preparers went out of business... because they didn't pass a basic test required by the Internal Revenue Service. Is your tax preparer registered with the IRS?

BMK

This would be great marketing material for sure!!!

[superman]

PTIN---OUT of Business?

Not always true. Say for an example my wife has a ptin number but no longer helps out in the office because she watches the kids for us and will get the number reissued later in life again then we did not go out of business she just dropped off due to other reasons. Are there not alot pf others out there that work for some of the big national chains and they do this for a year or two and then decide this is not for me?

I think there will be quite a few ptins not renewed for this reason alone and the IRS have no idea why they were not renewed just that they were not. Are we not giving the IRS more credit than they deserve as to knowing the reasons.

Just a thought.

Superman

[Bert73]

There is a Tax Pro that lives in my town that works for a national chain and prepares returns on the side ( no efile and signature ) that I would love to see her go out of business for not doing things by law. But since she doesn't claim a business and no record of income, how?

As for testing, are the national chains taking the test elsewhere or in their offices, because if they are taking the test in their offices, the count of registered Tax Pros will not be accurate. Working together on tests is not new!