Public Accountants Society of Colorado

Affiliate of the National Society of Accountants

PO Box 1078, Eastlake, CO 80614-1078 Phone – 303-452-8227 (800-578-4451)

Fax – 303-457-0770 www.coloradoaccountant.org

RTRP AND EA Frequently Asked Questions 1. WHAT IS AN RTRP? RTRP stands tor Registered Tax Return Preparer. All tax preparers who are paid to prepare tax returns (by anyone including family) are subject to the RTRP requirements. The RTRP designation process is required by law and began in September 2010. Attorneys, Certified Public Accountants, and Enrolled Agents are generally exempt. 2. WHAT IS A PTIN?

PTIN stands for Preparer Tax Identification Number. As of January 1, 2011 all tax return preparers (including RTRPs) were required to have a PTIN if they prepare tax returns. The initial registration fee to get a PTIN is $64.25 and the annual renewal cost is $63.00. 3. WHAT IS THE RTRP COMPETENCY EXAM? Paid federal tax return preparers must pass an IRS RTRP competency exam before December 31, 2013 to officially become a Registered Tax Return Preparer. The fee for the exam is currently $116. It is administered by a firm called Prometric on behalf of the IRS. The course lasts 2.5 hours and contains 120 questions. The test involves seven subject areas (domains). If you fail the test there is no limit on the number of times you can re-take it. You must pay the exam fee each time. PASC and other sources offer training to help you prepare for this exam. We recommend that you take the exam from Prometric as soon as you finish your test preparation course. Use this link to schedule your exam at a location near you http://www.prometric.com/SEE/default.htm. 4. WHAT ARE THE RTRP CONTINUING PROFESSIONAL EDUCATION REQUIREMENTS? Beginning in 2012 there is a requirement for all RTRPs to complete 15 hours of Continuing Professional Education credits each year. This includes 3 hours of federal tax law updates, 2 hours of ethics, and 10 hours of other federal tax law courses. These must be offered by an IRS Approved Continuing Education Provider and your PTIN number will appear on your certificate of course completion. The Approved CE Provider reports your CE to the IRS, thus you as the course attendee do not need to send any certificates to the IRS or report your CE to them in any way. You can obtain CPE credits through PASC and other IRS Approved Sponsors by taking classes to increase your knowledge and proficiency. 5. WHAT IS AN EA? An EA (Enrolled Agent) is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee. Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years. 6. SHOULD I BECOME AN EA OR AN RTRP?

EAs are exempt from the RTRP requirements. If you are interested in becoming an EA, we recommend taking the EA Live Test Preparation Course on August 22-24, which will only be held in Colorado in 2012. Even if you do not pass the EA Exam, you will still have time to pursue the RTRP designation before the December 30, 2013 deadline.

7. ARE THERE PENALTIES FOR NON-COMPLIANCE?

Yes, the IRS can impose penalties, injunctions, disciplinary action, and referrals for criminal investigation for preparing tax returns for a fee without being an EA, CPA, Attorney, or RTRP. 8. WHAT IS PASC? The Public Accountants Society of Colorado is a nonprofit membership organization founded in 1948 that provides tax and accounting seminars, public policy education, professional networking opportunities, and other services to members and non-members. PASC serves public accountants (including tax preparers), certified public accountants, accounting educators and students, enrolled agents, certified financial planners, accredited tax preparers and advisors, RTRPs, and other financial professionals. First-time membership is available for $99.00 for your first year. 9. CAN PASC HELP ME BECOME AN EA OR AN RTRP? Yes, in 2012 PASC offers several training classes to help you prepare for the RTRP exam and one class (offered only in 2012) to prepare for the EA exam. PASC provides the training and has partnered with Fast Forward Academy LLC

which provides the course materials, study guides, and practice tests. PASC also offers training classes in other tax and accounting practice areas which can help you meet your ongoing CPE requirements and enable you to keep your designation. 10. DO I HAVE TO PURCHASE THE FAST FORWARD ACADEMY MATERIALS TO TAKE THE PASC

CLASSES?

No, but we highly recommend purchasing the premium package for those preparing for the RTRP test. This is your business and it deserves the best. Also, you will receive a credit from PASC worth 20% of your Fast Forward Academy course material purchase that can be applied toward the PASC Corporations or 1040 Seminars in 2012. Keep in mind that the price difference between the premium and the least expensive option is less than the cost of re-taking the RTRP exam. To purchase RTRP materials or for more information, visit: http://fastforwardacademy.com/PASCRTRP. This is our way of encouraging you to be fully prepared. (If you are interested in test preparation materials for the EA Exam,

visit http://fastforwardacademy.com/PASCEA. You will also receive a credit toward a future 2012 seminar. 11. ARE THERE OTHER RESOURCES AVAILABLE? Yes there are many resources available to assist you in preparing for the EA Exam and the RTRP Exam. Many of them are interned-based distance learning opportunities. PASC offers a classroom learning environment taught by working professionals. You can find other resources through an internet search engine. Here are a few additional useful links for more information: IRS RTRP Candidate Information Bulletin

http://www.coloradoaccountant.org/pdf/RTRP/RTRP-Competency-Test-2011-22484-1.pdf

National Society of Accountants RTRP Survival Kit

http://connect.nsacct.org/RTRPSurvivalKit

Colorado Society of Enrolled Agents

http://www.taxproco.org/

Colorado Society of Certified Public Accountants

http://www.cocpa.org/

Approved CE Providers Listing

https://ssl.kinsail.com/partners/irs/publicListing.asp Public Accountants Society of Colorado

www.coloradoaccountant.org

Note : The information in this

document is intended as a guide and

is subject to change. Be sure to

contact the Internal Revenue Service

for the latest requirements, updates,

and deadlines.

July, 2012