What is Tax Broadcaster?
The Internal Revenue Service defines a “tax preparer” as “an individual who, for compensation, prepares all or substantially all federal tax returns or claims for refunds.
What are the recent changes to becoming an IRS Registered Tax Return Broadcaster (RTRP)?
The IRS requires all paid taxpayers to register with the IRS, pay a registration fee and obtain a tax identification number (PTIN). If you already have a PTIN, you will still need to register under the new process. All paid creators will be required to register and obtain a PTIN before testing becomes available (mid-Fall 2011), or they cannot prepare returns for compensation.
Starting October 2011, tax officers must pass the IRS Competency Examination to officially become an IRS Registered SPT Publisher. Individuals who held a PTIN before the test became available will have until December 31, 2013 to pass the IRS Competency Test and may take an unlimited number of tests to pass. There will be a fee for taking the test and that fee will be paid each time the individual tries to pass the test. Once testing is available, new SPT makers will be required to pass the IRS Competency Test before they can obtain a PTIN. The IRS will require competency tests for all paid tax return makers (except Lawyers, CPAs, Registered Agents). The IRS will be phased in three tests as follows: Year 1 – Wages and Non-Business, Year 2 – Wages and Small Business, Year 3 – Business Tax Rules. All drafters who register before the competency test becomes available (October 2011), have three years, until December 31, 2013, to pass the competency test.
How much does it cost to get a PTIN?
The IRS has an online registration system, Paid Tax Return Broadcasters pay a user fee of $64.25 in the first year for PTIN.
What is the difference between a Registered Agent and an IRS Registered Tax Return Broadcaster?
The IRS Registered Tax Return Preparation practice will be limited to preparing tax returns for compensation and representing taxpayers in the Audit when the audited return is the return they prepared whereas the Registered Agent practice prior to the IRS will not be restricted.
How do I become an IRS Registered Tax Return Broadcaster?
To become a Tax Broadcaster in California and Oregon, you must follow state guidelines as well as Internal Revenue guidelines. The state of California requires all paying Tax Publishers to take the California Registered Tax Preparation Course – a 60-hour Qualification course and register with the California Board of Tax Education (CTEC). In addition to state requirements, Internal Revenue services require an annual IRS Competency Examination. This is expected to begin in October 2011. Once a person has a valid PTIN and passes the IRS Competency Test, they will become an IRS Registered SPT Broadcaster.
How do I keep my registration up to date?
The IRS will require the tax professional to continue professional education 15 hours per year to continue your tax expert training for all paid Tax Broadcasters (except Lawyers, CPAs, Registered Agents). The IRS will need 15 hours to include three hours of federal tax law updates, two hours of taxpayer ethics, and 10 hours of federal tax law topics. Although, there is no continuing professional education (CPE) requirement for 2011. The IRS continuing professional education (CPE) requirements will begin in 2012. Individuals who are registered as SPT Broadcasters, and those with temporary PTIN but have until December 31, 2013 to pass the test, it is necessary to obtain 15 hours of continuing education coursework from an IRS-approved provider during calendar year 2012 and each subsequent year.
How about any other requirements?
Yes, the IRS may perform fingerprint checks on some applicants in the future. All current applicants must include an explanation of any criminal convictions within the last 10 years, when applying for a PTIN.
