If you prepare tax returns, no doubt you have heard about the upcoming IRS Registered Tax Return Preparer exam requirements. This new exam will focus on the completion of Form 1040 series and ethical responsibilities of tax preparers. The IRS recently published an outline that shows what applicants will need to study to pass the exam. It is divided up into seven domains:
- Preliminary work and collection of taxpayer data (15% of the exam)
- Treatment of income and assets (22% of the exam)
- Deductions and credits (22% of the exam)
- Other taxes (11% of the exam))
- Completion of the filing process (10% of the exam)
- Practices and procedures (5% of the exam)
- Ethics (15% of the exam)
The IRS will begin requiring this exam in October 2011, although if you have a PTIN before then, you have until December 31, 2013 to take the test. Additionally, certain tax preparers are exempt from this exam requirement. This includes attorneys, CPAs, enrolled agents and those supervised by any of the former categories. Details for this exam are still being ironed out. However, the IRS has indicated that the exam will be approximately 120 questions and will last between 2-3 hours.
Solomon Exam Prep is working on materials to help you prepare for this important new test. If you would like to be updated on our progress with materials for this exam, please join our mailing list by clicking here.