Transcript North Carolina Society of Enrolled Agents

Registered Tax Return Preparers
Frequently Asked Questions
A presentation of the
North Carolina Society of Enrolled Agents
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Are tax preparers required to be
licensed or registered?
Effective January 1, 2011,
All compensated individuals (paid preparers)
Who prepare all or substantially all of a federal tax
return or claim for refund
Must obtain or renew a Preparer Tax Identification
Number (PTIN) prior to filing any return
There are a few exceptions (e.g. VITA, employee
of taxpayer)
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What are the different kinds of
tax professionals?
Title
Registered Tax
Return Preparer
Enrolled Agent
Certified Public
Accountant
Attorney
Desig.
License
issued by
Representation
ability
RTRP
IRS
Limited
EA
US
Treasury
Full
CPA
State
Full
-
State
Full
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What are the new registration
requirements for tax preparers?
Apply for or renew a PTIN
– Preparers may also be required to e-file
Pass a proficiency exam
Complete Continuing Education Credits
Note: Enrolled Agents, CPAs and Attorneys have separate
proficiency exam and continuing education requirements
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How do I apply for or renew a
PTIN?
Go to http://www.irs.gov/taxpros/
Click on SIGN UP NOW
Create an account
Complete the application
Pay a $64.25 fee
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What is the e-file requirement?
The requirement will be phased in over two years. As a
result of the new rules, preparers will be required to
start using IRS e-file beginning:
January 1, 2011—100 or more federal individual or trust
tax returns during the year; or
January 1, 2012—11 or more federal individual or trust
tax returns during the year.
Must register – registration may take up to 45 days.
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What is the proficiency exam
requirement?
Exam to demonstrate competency to prepare
federal tax returns
Scheduled to begin mid-2011
Have until Jan 2013 to pass exam if PTIN
obtained before exam is available
Once exam available, must pass before:
– Getting PTIN
– Preparing federal tax returns
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What is the continuing education
requirement?
Annual continuing education requirement
Anticipated 15 CPE hours in tax
– Including ethics
Details are still being worked out
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What are the limitations on
registered tax return preparers
to represent taxpayers?
RTRPs are authorized to:
Prepare tax returns for compensation
Represent taxpayers in Examination
with respect to returns the RTRP
prepared
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What is an Enrolled Agent?
An individual licensed by the U.S. Treasury
To represent taxpayers before the Internal
Revenue Service.
Enrollment dates back to 1884,when Congress acted
to regulate persons who represented citizens in
their dealings with the Treasury Department after
questionable claims had been presented for Civil
War losses.
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What exactly do Enrolled
Agents do?
Enrolled Agents specialize in taxation.
Throughout the year, they advise, represent
and prepare returns for individuals,
partnerships, corporations, estates and trusts
– any entity with tax-reporting requirements.
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Common opportunities to
represent a taxpayer
• Examination
• Collection
• Appeals
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How do Enrolled Agents differ from
registered tax return preparers?
Enrolled Agents have the authority to prepare any
type of tax return and may represent any taxpayer
at all levels of the IRS (except tax court), whether
or not they prepared the return.
Registered Tax Return Preparers may prepare tax
returns and may, on a limited basis, represent
taxpayers in examinations of tax returns they
prepared.
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How do Enrolled Agents differ from
CPAs and attorneys?
Enrolled Agents specialize in taxation and are
specifically licensed at the federal level to represent
taxpayers.
CPAs and attorneys are licensed at the state level to
practice accountancy or law and many specialize in
areas other than taxation. They can obtain the same
representation authority granted to Enrolled Agents
by filing their credentials with the IRS.
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Have other questions?
Visit us online at
www.ncseaonline.org
or the National Association of Enrolled Agents at
www.naea.org
You can also contact any
Board Member of the
North Carolina Society of Enrolled Agents
listed on the website at
www.ncseaonline.org
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