The IRS Explains PTIN Application Process
As you are probably already aware, the Internal Revenue Service has announced new regulations regarding paid tax preparers, which include regulating unenrolled tax preparers by requiring them to register and comply with the same basic ethical regulations as enrolled preparers.
The first phase of this process is the requirement of all paid tax preparers, enrolled (CPAs, attorneys and enrolled agents—EAs) and unenrolled alike, to acquire a PTIN number. According to the IRS, beginning January 1, 2011, anyone paid to prepare all or the majority of any federal tax return or claim for refund must have a PTIN.
In a recent newsletter, the IRS explained the PTIN application process, which can be completed using a new sign-up system available through www.IRS.gov/taxpros. If you received a PTIN before September 28, 2010, you will need to create an account, complete the application and pay a $64.25 fee. To do so, complete the following four steps:
- Create Your Account — Create an account by providing your name, email address and security question information. The system will then email your temporary password, which you will change when you go back to enter your information in the PTIN application.
- Apply for Your PTIN — Complete the online application by providing certain information from your previous year’s tax return, professional credentials, and more.
- Pay Your Fee — The application will transfer you to our partner bank where you will make your payment by credit card or direct debit.
- Get Your PTIN — After the bank confirms your payment, your PTIN is provided online. If you already have a PTIN, you will retain the same number in most cases. You will also receive a welcome letter providing additional guidance.
It doesn’t take more than 15 minutes to submit the application and receive your PTIN. You can also submit the paper application, Form W-12, IRS Paid Preparer Tax Identification Number Application, however it will take 4-6 weeks to process.
Additional Requirements
Securing a PTIN fulfills the first requirement in regulating all paid tax preparers. Following the first phase described above, you will then be required to pass a test demonstrating your competency. The final phase requires you to earn 15 hours of continuing professional education (CPE) credits each year, including 2 hours of ethics, 3 hours of federal tax updates, and 10 hours of general federal tax law topics.
Universal Accounting Can Help You Succeed
While this process may seem burdensome, the truth is it presents a wonderful opportunity for those who are interested in building a competitive tax practice. Just meeting the new IRS requirements will provide a huge marketing opportunity as you grow your practice. And rest assured, Universal Accounting will be there to help you with all the great training and marketing resources we have to offer.
The Professional Tax Preparer Program
Universal Accounting Center already offers training that will help you prepare for the IRS competency exams while earning those required CPE credits.
The Professional Tax Preparer program will not only give you hands-on training in completing full individual (1040) and business returns (1065, 1120, 1120S), but it will also provide you with the following:
- 20 hours of valuable video instruction
- 2 instructional manuals
- Step-by-step instruction in becoming a sole practitioner
- One year of follow-up support from expert tax preparers
- The opportunity to earn valuable professional certification
- Our iron-clad, risk-free guarantee
Be prepared for the changes that will impact all future tax preparers. Enroll in the Professional Tax Preparer Program today, and be ready for impending IRS regulations for paid tax preparers.
Resource
http://www.irs.gov/taxpros/article/0,,id=210909,00.htmlwww.IRS.gov
