What stops an RTRP from filing a S-Corp, P-Ship, C-Corp etc.

[AZ-Tax]

So what happens when an RTRP trys to file an S-Corp, Partnership, C Corp, Trust, non profit after 1/1/2013? Will the tax software be required to prohibit it and/or will the IRS not accept the return? Or is the IRS playing the EA's for fools and allowing the RTRP's to file both business and personal tax returns? In the Securities world, if a Series 6 rep would try to mail in an investors subscription into a Partnership, the Broker Dealer would catch that and stop it.

[BP.]

So what happens when an RTRP trys to file an S-Corp, Partnership, C Corp, Trust, non profit after 1/1/2013?

Why should something happen?

From IRS RTRP FAQ page:
"What is the difference between an Enrolled Agent and a Registered Tax Return Preparer?
Both enrolled agents and RTRPs have the right to prepare and sign any tax forms. But the representation rights of enrolled agents before the IRS are generally unlimited whereas the representation rights of RTRPs are limited. RTRPs are limited to representing clients before an Examination function of the IRS when the RTRP prepared the return under examination."

I haven't seen limits on preparation, just representation. Maybe I missed something??

[WhiteOleander]

Even before the new requirements for non-EAs, they could file any return those chose to.

I have co-workers who are not EAs that are excellent tax professionals. They just can't represent their client before the IRS.

[dtlee]

It is my understanding that non-1040 Preparers are exempt from taking the RTRP exam and thus need no credentials other than a PTIN.

I don't think the converse of this is true, i.e., that you must not have any credentials if you want to prepare returns other than a 1040 series return.

CPAs, Attorneys, and EAs are allowed to prepare non-1040 returns as well as preparers with no credentials. I don't think that the law would specifically exclude preparers with the RTRP designation.

Is there some new regulation that came out on this? I have not been diligent reading new information since January.

[AZ-Tax]

Was business taxation covered in the RTRP exam?

Its my understanding it was not.

[okie1tax]

Filing business returns

Are we talking about "preparing" or "filing" returns? Either one, RTRP is about 1040 based returns, nothing to do with business returns at this time. 2nd level testing was dropped from the requirements, or at least postponed.

[BP.]

Was business taxation covered in the RTRP exam?
Its my understanding it was not.

Are we talking about "preparing" or "filing" returns?

Are we talking about "testing" or "preparing?"

RTRP tested 1040; preparation of non-1040 isn't barred.

[dtlee]

Was business taxation covered in the RTRP exam?

Its my understanding it was not.

No.

Currently, there are no testing requirements that I know of for non-1040 series returns (again, have not read rules on this since the end of January).

[AZ-Tax]

2nd level of RTRP testing

Are we talking about "preparing" or "filing" returns? Either one, RTRP is about 1040 based returns, nothing to do with business returns at this time. 2nd level testing was dropped from the requirements, or at least postponed.

Assume the 2nd level testing is not available until 1/1/2014, can RTRP's prepare 1120s, 1120, 1065, trust after 1/1/2013?

Personally I think the RTRP should have consisted of the Part 1 and Part 3 of the EA exam. Then the RTRP's have the option of taking part 2 for business returns. The IRS cold have saved some bucks and make this less confusing for the consumer.

[dtlee]

Assume the 2nd level testing is not available until 1/1/2014, can RTRP's prepare 1120s, 1120, 1065, trust after 1/1/2013?

Personally I think the RTRP should have consisted of the Part 1 and Part 3 of the EA exam. Then the RTRP's have the option of taking part 2 for business returns. The IRS cold have saved some bucks and make this less confusing for the consumer.

YES.

Basically, virtually anyone (RTRP or not) can prepare a 1065, 1120, 1120S, or 1120H, return. They have not set a date for testing for these returns, no less a deadline for completing the testing.

Please read this document where it says that preparers who do not prepare 1040-Series are exempt from testing at this time:

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=2&cts=1330896677483&ved=0CD8QFjAB&url=http%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-utl%2Frtrpcandidateinfobulletin.pdf&ei=at5TT8bVBtLD0AGy2LS2Ag&usg=AFQjCNHHeh5ut2nqZRLx80e1ZbdMpiwLrA

You only require a PTIN to prepare and sign returns that are not in the 1040 series.

[joanmcq]

Business and other entities will be covered in another exam from what I understand. I'm not sure how the licensing will work in the time between the exams, or how they will enforce it.

[dtlee]

Business and other entities will be covered in another exam from what I understand. I'm not sure how the licensing will work in the time between the exams, or how they will enforce it.

Until the IRS decides how they are administering the non-1040 series (whether individually or by type or as a group), there are no restrictions on preparers who want to prepare these returns other than the PTIN requirements.

[Uncle Sam]

Non 1040 Preparers

So I guess, AZ - from your posts, that you're looking to find ways to skirt around the
IRS testing procedures so you can prepare non-1040s, without having to show credentials.

Why not focus on finally getting your EA license, once and for all, so you won't have to
spend the time thinking about how to work around these policy restrictions and still practice in the tax preparation world?

[dtlee]

So I guess, AZ - from your posts, that you're looking to find ways to skirt around the
IRS testing procedures so you can prepare non-1040s, without having to show credentials.

Why not focus on finally getting your EA license, once and for all, so you won't have to
spend the time thinking about how to work around these policy restrictions and still practice in the tax preparation world?

No one needs to pass any exam at this time to prepare the non-1040 series of exams. There is no IRS Testing Procedure for non-1040 returns to skirt around.

[AZ-Tax]

Why Not this UC

So I guess, AZ - from your posts, that you're looking to find ways to skirt around the
IRS testing procedures so you can prepare non-1040s, without having to show credentials.

Why not focus on finally getting your EA license, once and for all, so you won't have to
spend the time thinking about how to work around these policy restrictions and still practice in the tax preparation world?

UC I don’t know how you operate your tax practice but I stay away from guessing.

I already passed my EA exam and await my license as my app is being processed therefore in the mean time I can't call myself an EA but UC you already knew that didn’t you.

Lastly speaking of “why not”, why not stay clear of replying to all my threads and post in the future which includes this one.