True or False regarding PTIN & mandatory licensing

[AZ-Tax]

I just heard from an EA that if you hire some one during tax season to enter data into a tax return even though you the EA name will be on the tax return as the preparer, all that new hire can do is enter the name and address of the taxpayer. The new hire CANNOT enter data from a tax form such as a W-2, 1099-R etc. unless that new hire has a PTIN and then will need to comply with the testing requirements. If this is true just how is the IRS going to monitor this? Dropping into tax offices?

[Uncle Sam]

You asked if the answer to your question is True or False

Your last line was another question.

Which question do you want answered?

[okie1tax]

Ptin

See if this will answer your question.

http://www.irs.gov/pub/irs-drop/n-11-45.pdf

[kpangelinan]

First question I believe is true.

Second question....who knows....I personally spoke to someone who has been doing preparer penalty audits (I know, not the same thing) and he mentioned possible field visits and signed deposition audits for the new PTIN requirements.

[okie1tax]

Ptin

AZ-Tax, this may give you a better perspective - http://www.irs.gov/taxpros/article/0,,id=243337,00.html
See the "Supervised Preparers"

Second question, wouldn't want to risk my license.