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As everyone with a tax preparer career starts business promotion for next tax season, the IRS has emphasized some important guidelines. Firstly, anyone preparing tax returns for a fee is required to obtain a Preparer Tax Identification Number (PTIN).

The IRS issues a PTIN to all paid tax preparers who are licensed as enrolled agents, attorneys, or certified public accountants. Unlicensed professionals are issued a provisional PTIN. The latter tax practitioners must eventually meet the requirements of registered tax return preparer certification.

Demonstrating competency by passing the RTRP exam is one of the requirements for tax preparers who are not enrolled agents, attorneys, or certified public accountants. Anyone with a provisional PTIN has until December 31, 2013 to pass this test. Professionals who want to pass the examination immediately after it becomes available are currently learning the information in a registered tax return preparer study guide.

An individual is not allowed to use the title of Registered Tax Return Preparer until passing the competency exam. Consequently, nobody is yet eligible to use this designation in marketing materials for the 2012 tax season. The IRS has also cautioned against using variations of the professional label, such as Registered Tax Preparer or Registered Return Preparer. Even use of "RTRP" is restricted.

Issuance of provisional PTINs will continue into April 2012. This IRS policy prevents disruption to the 2012 tax return filing season. However, by that time, the IRS expects the availability of the registered tax return preparer exam. As soon as the exam is offered, new PTIN applicants must provide proof of passing scores with their application.

In addition, PTIN recipients must meet IRS suitability and tax compliance checks. Therefore, an RTRP must not have a tax filing delinquency or criminal history that causes disqualification. A fingerprint record is submitted to the IRS by every candidate for a registered tax return preparer certificate. This allows the IRS to check for an applicant in the FBI fingerprint database.

Although holders of provisional PTINs must satisfy registered tax return preparer CPE in 2012, they cannot use the RTRP designation before passing the competency exam. Because that test is not available as of the autumn of 2011, no one is yet permitted to represent that he or she is a Registered Tax Return Preparer.

So there are two important measures for tax preparers to follow in planning for the 2012 tax season. First, they cannot advertise that they are registered or have passed an IRS exam. Secondly, they should take an online tax preparation course in order pass the RTRP exam as soon as it is offered.

IRS Circular 230 Disclosure

Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.

Fast Forward Academy is a leading publisher of education for tax preparer career and tax professionals. Access to free questions for the paid tax preparers is available on their website.

By Sawyer Adams
Article Source: http://EzineArticles.com/?expert=Sawyer_Adams