Forgot to Renew PTIN

[zeros]

Tax preparer, at a recent tax seminar, realized that he had forgotten to renew his PTIN for last year. He got on the phone with a person and renewed it and paid the $63.25 and received a new number. The paperwork said that it would expire 12/31/12. He, apparently, saved $63.00 but will he be required to pass the test before 2013, seeing he has a new number now? Does anybody see any looming problems for the preparer with this transasction?

[Dusty2004]

Don't know

Tax preparer, at a recent tax seminar, realized that he had forgotten to renew his PTIN for last year. He got on the phone with a person and renewed it and paid the $63.25 and received a new number. The paperwork said that it would expire 12/31/12. He, apparently, saved $63.00 but will he be required to pass the test before 2013, seeing he has a new number now? Does anybody see any looming problems for the preparer with this transasction?

I am surprised he received a PTIN. My guess is because they do not have the test ready. I thought if you did not get your PTIN before the end of last year they would not issue one until you passed the test. Interesting...

Dusty

[AZ-Tax]

How did he save $63?

He, apparently, saved $63.00 but will he be required to pass the test before 2013, seeing he has a new number now? Does anybody see any looming problems for the preparer with this transasction?

If its a renewal how did he save $63? I registered and initally pd my PTIN fee in Sept of 2010 and now I will pay to renew it for 2012 I assume.

[David1980]

I am surprised he received a PTIN. My guess is because they do not have the test ready. I thought if you did not get your PTIN before the end of last year they would not issue one until you passed the test. Interesting...

Dusty

They keep pushing back the date where a new PTIN will require a test pass. Right now they've said it won't be any sooner than April or May.

[David1980]

If its a renewal how did he save $63? I registered and initally pd my PTIN fee in Sept of 2010 and now I will pay to renew it for 2012 I assume.

He didn't pay any fee in Sept of 2010. Basically, for all of 2011 he did returns using an unregistered PTIN so he didn't pay for that year. Thus, saving $63 that you paid in September of 2010.

[JohnH]

I don't think he saved any money.

He paid $63 when he registered for 2011 in 2011, and he will pay another $63 when he registers for 2012 in Dec 2011.

You paid $63 when you registered for 2011 in 2010, and you will pay another $673 when you register for 2012 in Dec 2011.

Same amount paid by both of you for the same time periods - he just paid for 2011 later than you did.

[Koss]

Failure to Renew

He may have saved a few bucks, but he was not in compliance if he was signing returns with a PTIN that had not been renewed.

For 2011, I think the IRS has gone on record somewhere as saying that they are not taking formal enforcement action against preparers using an invalid PTIN. They sent out warning letters.

I'm sure they're planning to get tougher in 2012.

BMK

[Dusty2004]

Thanks David

They keep pushing back the date where a new PTIN will require a test pass. Right now they've said it won't be any sooner than April or May.

I was unaware of that. I guess because I signed up I did not read up on it.

Has anyone heard yet when they are going to start testing and where?

Thanks,

Dusty

[Koss]

Testing

The testing will be done by a contractor. The IRS awarded it to Prometric, which also administers the exam for Enrolled Agents, and many other state licensing exams, such as CPA licensure and insurance agents.

They have offices in every major metropolitan area, and even in some other countries.

I took the EA exams through Prometric in 2008.

You schedule the exam at a time that you choose, and pay the exam fee through their website. Then you show up with your identification and take the exam.

As you probably know, the exam is taken on a computer. You will be seated at a PC in a small cubicle, or something that could best be described as a library carrell. They guy or girl next to you will probably be taking a different test.

If it's done like the EA exam, you get a pass/fail result immediately.

One big difference is that the IRS has gone on record as saying that the RTRP test will be open-book, but they haven't said what you can use yet. Mayber a Pub. 17 and the 1040 instructions.

The EA exam allows nothing except a calculator and scratch paper.

If you visit the Prometric website, you can find the location nearest you. You'll have to pretend that you are registering for the EA exam, without actually completing the registration process. You won't get a list of locations unless you select an exam, because not every type of exam is offered at every location.

BMK

[David1980]

I don't think he saved any money.

He paid $63 when he registered for 2011 in 2011, and he will pay another $63 when he registers for 2012 in Dec 2011.

You paid $63 when you registered for 2011 in 2010, and you will pay another $673 when you register for 2012 in Dec 2011.

Same amount paid by both of you for the same time periods - he just paid for 2011 later than you did.

" The paperwork said that it would expire 12/31/12. "

Looks to me like he never did your first step. He never registered for 2011 in 2011. He skipped 2011 all together. Hence, he will have never paid for 2011.

[Dusty2004]

Thanks

If you visit the Prometric website, you can find the location nearest you. You'll have to pretend that you are registering for the EA exam, without actually completing the registration process. You won't get a list of locations unless you select an exam, because not every type of exam is offered at every location.

BMK

I will visit their site and see where they are close to me. I would guess about 60 - 120 miles away.

Dusty

[JohnH]

" The paperwork said that it would expire 12/31/12. "

Looks to me like he never did your first step. He never registered for 2011 in 2011. He skipped 2011 all together. Hence, he will have never paid for 2011.

OK.
Got it.
Looks like he did save $63.
(That is, assuming he read his paperwork correctly, which may be a stretch)

[BP.]

IRS has gone on record as saying that the RTRP test will be open-book, but they haven't said what you can use yet. Maybe a Pub. 17 and the 1040 instructions.

Here's a link to test faqs, including which open-book resources will be provided.

http://www.irs.gov/taxpros/article/0,,id=239683,00.html