Rtrp

[Brilliant]

Does anyone know what would happen if an tax preparer (not a CPA or EA) dose not take the RTRP test or took the RTRP test and failed? would that person still be able to prepare other tax returns (not 1040) like corportaions and partnership tax returns?

[spanel]

Does anyone know what would happen if an tax preparer (not a CPA or EA) dose not take the RTRP test or took the RTRP test and failed? would that person still be able to prepare other tax returns (not 1040) like corportaions and partnership tax returns?

I believe the answer is no. Personally, would you want someone to prepare 1065's,1120,1120's that cant pass a simple 1040 exam?

Chris

[Uncle Sam]

Rtrp

If an RTRP is limited to preparing 1040s, and hasn't become one by the deadline - why would he/she be permitted
to prepare more sophisticated returns - like corporations, partnerships, etc that require more extensive knowledge
and skill for which they haven't been tested?

[Bees Knees]

Buy TTB RTRP study exam. They guarantee you will pass on the first try.

[Gretel]

While I agree with the others, I will try to answer the original questions without judgement. There was a post some time ago asking the same question (search for it), and, to my surprise, the result was that any other return can be prepared if the test is not passed.

[JohnH]

I missed that thread, but I don't see how that could happen.
The paid preparer is required to enter a PTIN for entity returns as well as personal returns.
This applies even to payroll reports.
If the RTRP test is not passed by the due date, then the PTIN would be invalid.

[New York Enrolled Agent]

I missed that thread, but I don't see how that could happen.
The paid preparer is required to enter a PTIN for entity returns as well as personal returns.
This applies even to payroll reports.
If the RTRP test is not passed by the due date, then the PTIN would be invalid.

I believe it goes like this.

#1 ALL paid preparers must have a PTIN.

#2 If a paid preparer only does non-1040 series returns, they need the PTIN but are not required to take or pass any test. Once they do any 1040 forms, they need to be an EA, CPA, attorney or RTRP (I'm ignoring any date deadlines). If they are non-1040 preparers they will make an attestation on their PTIN renewal.

[Bees Knees]

From TTB updates:

http://www.thetaxbook.com/updates/TheTaxBook/Updates/2012-04-25_PTIN_Requirements_for_Supervised_Preparers.pdf

Non-Form 1040 series preparers. Only Form 1040 series preparers are required to be
an EA, CPA, Attorney, or RTRP at this time. Currently, the competency test to become
an RTRP only covers Form 1040 series returns. The proposed regulations clarify that the
terms tax return and claim for refund of tax include all tax forms submitted to the IRS
except forms that the IRS specifically excludes in Notice 2011-6.

Thus, for example, an individual who is paid to prepare payroll tax returns (Forms 941,
940, etc.) is required to obtain a PTIN as the paid preparer, even though such individual
is not required to be an EA, CPA, Attorney, or RTRP (assuming such individual does not
prepare any Form 1040 series returns).

The proposed regulations clarify that the IRS may conduct a suitability check, in addition
to a federal tax compliance check on such individual who applies for or renews a PTIN.

I would assume the same example given for payroll tax returns would also apply to someone who does not do 1040 returns, but does do corporation and partnership returns.

[Bees Knees]

BTW, I know that there are some accountants who only prepare large corporation returns for CPA firms. It is possible that some of these accountants work for CPA firms but are not actually CPAs themselves. Thus, it is possible that a tax preparer trained to do large corporation returns at a CPA firm who does not hold a CPA credential could still get a PTIN without having to pass the RTRP exam. Of course, in the future, the IRS may require those types of preparers, along with payroll tax services, to pass some form of RTRP exam just like 1040 preparers are currently required to do.

[JohnH]

OK - asked & answered.
Thanks.

[Burke]

I am sure the reason for this is, the IRS has no test prepared to qualify business-entity-return practitioners. So it can't very well ask them to pass one, as ridiculous as this seems to us. They may think that most of these are prepared by EA's, CPA's and attorneys anyway, and their focus right now is on the unqualified, fly-by-nighters, and the fraudulent preparers -- the majority of which are more than likely the 1040's.