NSA SPECIAL ALERT - Update on IRS Tax Preparer Regulation

22 Jan 2013 3:33 PM | Anonymous

The IRS, in a court case, has been found not to have the authority to license tax preparers, essentially throwing out the RTRP regulatory system that the IRS has already begun to implement. The IRS rules requiring all paid tax return preparers to pass a competency test and meet continuing education requirements are all part of the regulatory scheme the court found invalid.

The IRS today issued a statement saying in part that, “In accordance with this order, tax return preparers covered by this program arenot currently required to register with the IRS, to complete competency testing or secure continuing education. The ruling does notaffect the regulatory practice requirements for CPAs, attorneys, enrolled agents, enrolled retirement plan agents, or enrolled actuaries.”

The statement is available at the following URL on IRS.gov:
http://www.irs.gov/uac/IRS-Statement-on-Court-Ruling-Related-to-Return-Preparers

Things You Should Know
So, where do we go from here?

NSA participated in a conference call this afternoon with Carol Campbell, Director of the IRS Return Preparer Office. On this call, Ms.Campbell and other IRS personnel made the following statements:
1) The IRS has stopped scheduling tests, so after today, you cannot schedule the exam.
2) The online PTIN system is currently unavailable.
3) Continuing Education is no longer required for current RTRPs and RTRP candidates, but can be completed voluntarily.
4) The IRS will issue guidance to CE providers shortly.

Of course, we will continue to closely monitor this ongoing situation and will keep you informed of any developments. 
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