CPA Voice October 2011 : Page 2
Latest News Tax return preparer guidance issued by IRS Fingerprinting requirement included The IRS has provided additional clarifi cation for tax return preparers regarding: When to renew preparer tax identifi cation numbers (PTINs). How suitability testing will be conducted. When the continuing education requirement will begin. IRS Notice 2011-80 says PTINs must now be renewed on a calendar year basis. All PTIN holders must renew their numbers using the online PTIN application or paper Form W-12 and pay the required fee ($64.25 for 2012) after Oct. 15 and before Jan. 1 annually. The notice also clarifi es a number of other issues: The IRS will continue issuing provisional PTINs at least through April 18, 2012. Once the IRS stops issuing provisional PTINs, tax return preparers who are required to complete the competency test or suitability requirements must complete these requirements successfully prior to obtaining a PTIN. The 15-hour continuing education requirement for certain tax return preparers will take effect starting in 2012. Registered Tax Return Preparers and individuals required to pass the Registered Tax Return Preparer competency examination before Dec. 31, 2013, must complete the 15-hour requirement before renewing their PTINs for 2013 and subsequent years. CPAs are exempt from the education requirement. Certain tax return preparers who must pass a suitability check will have to provide their fi ngerprints so that a FBI database search can be conducted. Generally, the fi ngerprint requirement will affect those preparers who currently have provisional PTINs. Attorneys, CPAs, enrolled agents, enrolled retirement plan agents and enrolled actuaries also are expected to be exempt from the fi ngerprinting requirement. However, these individuals must answer all suitability questions asked on the PTIN application, such as whether they have been convicted of a felony in the previous 10 years. First competency exam The IRS also announced that the fi rst competency exam for Registered Tax Return Preparers will be offered in October. New look for CPA Voice OSCPA is proud to unveil a new look for CPA Voice . Based on member research and feedback, we’ve updated the look and size to better meet your needs. While many members liked the larger size, most wanted a more traditional size. Now you can go ahead and slide CPA Voice into your briefcase, read it while on the treadmill at the gym – keep it anywhere it is convenient for you! We also updated the design to give Voice a more modern feel. The internal pages feature a more open, cleaner design and larger font. The goal is to make Voice easier to read and fi nd the information that matters to you. We are keeping the aspects that you enjoy. We still have sections focusing on your interests: Tax, Accounting and Auditing, Business and Industry, Public Practice and Technology. The technical stories still feature a “takeaway” section summarizing the main points of the article. Flip through and take a look. Then let us know what you think at cpavoice@ohio-cpa.com. Selling or Buying? You Don’t Need to Have All the Answers … You Just Need to Know Who to Ask! Accounting Practice Sales Can Help • Valuation • Consultation • Due Diligence • Confidentiality • Buyer Screening • Deal Structure • Marketing • Negotiations • Financing Put Our Years of Experience to Work for You NORTH AMERICA’S LEADER IN PRACTICE SALES 1-800-CPA-SELL 1 -80 0 -2 7 2-7 3 5 5 Call for a FREE Valuation and Consultation www.accountingpracticesales.com Visit our website to view current listings 2 The Ohio Society of CPAs | CPA Voice | October 2011
Tax Return Preparer Guidance Issued By IRS
Fingerprinting requirement included<br /> <br /> The IRS has provided additional clarification for tax return preparers regarding:<br /> <br /> When to renew preparer tax identification numbers (PTINs).<br /> <br /> How suitability testing will be conducted.<br /> <br /> When the continuing education requirement will begin.<br /> <br /> IRS Notice 2011-80 says PTINs must now be renewed on a calendar year basis. All PTIN holders must renew their numbers using the online PTIN application or paper Form W-12 and pay the required fee ($64.25 for 2012) after Oct. 15 and before Jan. 1 annually.<br /> <br /> The notice also clarifies a number of other issues:<br /> <br /> The IRS will continue issuing provisional PTINs at least through April 18, 2012. Once the IRS stops issuing provisional PTINs, tax return preparers who are required to complete the competency test or suitability requirements must complete these requirements successfully prior to obtaining a PTIN.<br /> <br /> The 15-hour continuing education requirement for certain tax return preparers will take effect starting in 2012. Registered Tax Return Preparers and individuals required to pass the Registered Tax Return Preparer competency examination before Dec. 31, 2013, must complete the 15-hour requirement before renewing their PTINs for 2013 and subsequent years. CPAs are exempt from the education requirement.<br /> <br /> Certain tax return preparers who must pass a suitability check will have to provide their fingerprints so that a FBI database search can be conducted. Generally, the fingerprint requirement will affect those preparers who currently have provisional PTINs. Attorneys, CPAs, enrolled agents, enrolled retirement plan agents and enrolled actuaries also are expected to be exempt from the fingerprinting requirement. However, these individuals must answer all suitability questions asked on the PTIN application, such as whether they have been convicted of a felony in the previous 10 years.<br /> <br /> First competency exam The IRS also announced that the first competency exam for Registered Tax Return Preparers will be offered in October.<br /> <br /> For those tax preparers who plan to take the exam in the next few months, the forms and publications they should study are from tax year 2010. The IRS has included a list of the 2010 versions of the forms and publications on a new information page.<br /> <br /> The exam is part of the IRS’ three prong approach to regulating the tax preparation profession. Ahead of last tax season, the IRS began requiring paid tax preparers to obtain a Preparer Tax Identification Number to use on their tax returns. The IRS is also in the process of instituting a continuing education requirement.<br /> <br /> CPAs, attorneys and enrolled agents are not subject to the new testing requirements. Nor are “supervised preparers” who do not sign tax returns but help prepare tax returns for CPAs, attorneys and enrolled agents and are supervised by them. Those who don’t prepare Form 1040 series tax returns also are not subject to the requirements.<br /> <br /> More information is available on the IRS PTIN website at www.irs.gov/taxpros
New look For CPA Voice
OSCPA is proud to unveil a new look for CPA Voice. Based on member research and feedback, we’ve updated the look and size to better meet your needs. While many members liked the larger size, most wanted a more traditional size. Now you can go ahead and slide CPA Voice into your briefcase, read it while on the treadmill at the gym – keep it anywhere it is convenient for you!<br /> <br /> We also updated the design to give Voice a more modern feel. The internal pages feature a more open, cleaner design and larger font. The goal is to make Voice easier to read and find the information that matters to you.<br /> <br /> We are keeping the aspects that you enjoy. We still have sections focusing on your interests: Tax, Accounting and Auditing, Business and Industry, Public Practice and Technology. The technical stories still feature a “takeaway” section summarizing the main points of the article.<br /> <br /> Flip through and take a look. Then let us know what you think at cpavoice@ohio-cpa.com.
