PREPARER REGULATION

New regulations require all paid tax return preparers to obtain a Preparer Tax Identification Number (PTIN). In the future, some preparers will need to pass a competency test and background check, and take continuing education courses.

Learn more about New PTIN Requirements for Tax Return Preparers

Here’s a summary of what’s required for each type of preparer:

Category	PTIN	Tax Compliance Check	Background Check	Competency Test	Continuing Education
Attorneys
CPAs
Enrolled Agents
Registered Tax Return Preparers
Supervised Prepares*
Non-1040 Prepares**

*To determine if you are a supervised preparer, view the Notice 2011-6 Fact Sheet
**If you only prepare Forms 1040-PR and 1040-SS, you are considered a non-1040 preparer.

Regulations Details

In general, preparers must complete three phases in order to comply with the new regulations:

1. Register – During the application process, preparers obtain, or reapply for, a PTIN. All preparers must register, apply, and pay a $64.25 fee, regardless of whether you currently possess a PTIN. Attorneys, certified public accountants (CPAs), and enrolled agents (EAs) are NOT exempt.

View a tutorial of the PTIN registration process

2. Competency Exam – Tax return preparers are required to pass a competency exam in order to become a registered tax return preparer. Competency exam content is provided in Return Preparer Review, December 2009, Pub 4832 Appendix I. (CPAs, EAs, and attorneys are exempt from the competency exam.)

3. Continuing Education – In the future, 15 hours of continuing education will be required every year. (CPAs, EAs, and attorneys have different CPE licensing requirements.)