Registration Mandate for Paid Tax Preparers


The IRS is trying to regulate the multifaceted world of tax preparation. Making money by doing people’s taxes can be a great source of income. It’s a shame more people don’t know how simple their taxes can be, but that is why they pay professionals to do it for them. Sometimes, customers just don’t have the time either.

In regards to professional tax preparation, it is now necessary for all paid tax return preparers to obtain a PTIN. The renewal process starts in October. Taking it a step further, some preparers may need to take a competency test, complete a background check, and finish some continuing education classes.

Sounds like a pain compared to the way it used to be right? However, this is another initiative that will be beneficial in the long run. Customers will be able to decipher who is the best at what they do: filing taxes. Take it as a challenge to better yourself and your profession.

For those new to tax preparation, you can obtain a PTIN following certain steps. Follow these three steps to solidify your legal status as a paid tax preparer:

• Create an account with the online PTIN sign-up system
• Complete the online PTIN application
• Pay your fee of $64.25

If you want to do it by paper, you can fill out Form W-12.

For those that already have a PTIN, you may have received an email to participate in a job analysis. If you haven’t filled it out yet, that’s fine. However, keep in mind, your input could decide the structure of the Registered Tax Return Preparer competency exam.

Tax preparation is a necessary part of life. Not to say that some people don’t avoid the obligation, but for the most part it is a step everyone must go through. Being a tax preparer puts you in a great position for the future. The amount of tax payers is growing, and taxes seem to be getting somewhat more complex. To keep up with the shifting technology, make sure to use affordable tax software. Contact Taxslayer Pro for any questions regarding the matter. This will get your client the biggest refund, and it will bring you more customers. It’s a win-win situation.