Get Prepared: the Registered Tax Return Preparer Test

November 13, 2012

Sharon Sanders

Agenda/Contents of Presentation

Why and Who must

test

Preparing

for the TestTaking the Test After the Test

� Improve profession, compliance, service

� Purpose of test

� How to get started

� Who is exempt

� What is an RTRP

� Why test now

� Scheduling an appointment

� Pre-test check list and study materials

� CE Credit

� Special Accommodations for people with disabilities

� Arrival at PrometricTest Centers

� Importance of identification

� Taking the Test

� Pass/fail notification

� Retaking the test

� Tax Compliance Check

� The RTRP Certificate

� Additional Information

1 2 3 4

Purpose of the RTRP Test

• Demonstrate knowledge of basic federal individual income tax laws

• Demonstrate knowledge of preparing the Form 1040 and related schedules

• Demonstrate understanding of ethical responsibilities under Circular 230

Getting Started: An Overview

• Schedule an appointment either online or by phone (up to 6 months in advance)

• Study for the test using IRS resources or an authorized Continuing Education provider

• Pass the test; make sure you are current with your individual and business taxes

• Receive your RTRP certificate

Who is Exempt and Why?

• CPAs, Enrolled Agents and attorneys are exempt ―They already meet professional testing

and CE requirements

• Supervised Preparers and Non-1040 Preparers are exempt ―Supervisors are responsible for the work

of supervised preparers―The test covers individual tax issues.

Registered Tax Return Preparer

• New credential for previously “unenrolled”preparers

• Must have a valid PTIN and renew annually

• Must pass RTRP competency test by December 31, 2013

• Must complete 15 hours of continuing education annually

• Must adhere to ethical requirements

RTRP Test: Schedule Today

• Schedule today to ensure a date, time, and location at your convenience

• Testing now ensures a place on new public database

• Currently covers 2011 tax law

• Gives you a competitive advantage

• Don’t expect the deadline to be extended

How to Schedule a Test Appointment

• Use your online PTIN Account at www.irs.gov/ptin

• Once signed in, select “View Next Steps and Outstanding Requirements”

• Links will take you to Prometric’s online scheduling program

• Select a test location, date, and time

• Pay $116 fee

No Online Account?

• Find your PTIN Welcome or Renewal Letter

• Call 1-855-IRS-EXAM (477-3926).

• You will be asked for your FILE NUMBER, which is on your PTIN Welcome or Renewal Letter.

• Pay $116 fee. You may also pay by eCheck if you schedule your test by phone.

Important Pre-test Information

• Test must be taken at a Prometric site

• Prometric offers special accommodations for people with disabilities. See the Candidate Information Bulletin for details.

• To reschedule a test, fees may apply:―If changes are made 30 days prior to

original appointment: no fee―If 5-29 days prior: $35 fee―Less than 5 days prior: $116

Preparing for the RTRP Test

• First stop:

― Go to www.irs.gov/taxpros/tests and select Registered Tax Return Preparer Test

― On this page you will find…

Pre-Test Check List

• Candidate Information Bulletin – An overview of all RTRP test info

• Test Specifications – An outline of the test topics

• Test Tutorial – Be sure to practice navigating the references

• "What to expect on test day" video

• Sample test questions

Recommended Study Materials

• Publication 17, Your Federal Income Tax

• Form 1040, U.S. Individual Income Tax Return, and instructions

• Circular 230, Regulations Governing Practice before the Internal Revenue Service (rev. 8/2/11)

• Publication 334, Tax Guide for Small Business

• Publication 970, Tax Benefits for Education

• Publication 1345, Handbook for Authorized IRS e-file Providers

• Form 6251, Alternative Minimum Tax – Individuals, and instructions

• Form 8879, IRS e-File Signature Authorization

• Publication 596, Earned Income Credit (EIC)

• Form 2848, Power of Attorney, and instructions

• Form 8821, Tax Information Authorization

• Form 8867, Paid Preparers Earned Income Credit Checklist

• Publication 4600, Safeguarding Taxpayer Information Quick Reference Guide for Businesses

Test Preparation Courses

• Many private-sector providers offer RTRP test preparation courses

• Courses from IRS Approved Continuing Education Providers count toward your CE requirements

• Review details at ww.irs.gov/taxpros/ce, see list of IRS Approved CE Providers

Arrival at the Prometic Test Centers

• Arrive at least 30 minutes prior to appointment

• A government-issued ID containing both photo and signature is required

• Personal items must be stored in lockers – no outside materials are allowed in testing rooms

• All candidates must agree to non-disclosure statement

Taking the RTRP Test

• 2 ½ hour time limit

• 120 questions. All multiple choice, except ethics, which are true/false.

• Electronic access to Publication 17, Form 1040, and 1040 Instructions is provided to test takers as reference materials during testing

Taking the RTRP Test

•No other reference materials are permitted

•Handheld and onscreen calculators are provided

•Pass or fail notification will be reported immediately after the test.

•Candidates must score 350 or higher (out of a numerical score of 500) to pass the test.

If You Fail the RTRP Test

•Candidates who fail the test will be given their test scores so they can identify those test domains that proved troublesome.

•Candidates who fail can reschedule the test at any time

•If you fail you make take it as many times as needed to pass.

•A $116 fee will apply each time.

If You Pass the Test

• You will not be given your exact test score

• The IRS automatically will conduct a tax compliance check

• Your Registered Tax Return Preparer Certificate will arrive within four to five weeks

• Congratulations! You are a Registered Tax Return Preparer

A Caveat

• If you market yourself, and we hope you will, you must display the following disclaimer in any paid advertising involving print, television, or radio in which you represent yourself as a Registered Tax Return Preparer:

“The IRS does not endorse any particular individual tax return preparer. For more information on tax return preparers go to IRS.gov.”

RTRP or EA Logo

• If you would like to obtain the official RTRP or EA logo, contact the PTIN helpline

• After the IRS verifies your credential, the appropriate logo will be emailed to you

Recap of Key Items

1. Schedule your test today to be assured of a seat

2. If you schedule by phone, locate your FILE NUMBER on your PTIN Welcome or Renewal Letter.

3. Make sure you don’t have any tax problems. You’re in good shape if: 1) all individual and business returns that are due have been filed (or an extension requested) and 2) all taxes that are due have been paid (or acceptable payment arrangements have been established).

4. To maintain your RTRP status, you must complete 15 hours of continuing education annually, renew your PTIN annually and adhere to ethical standards outlined in Circular 230

Additional Information

Visit these web pages:

•www.irs.gov/ptin to renew your PTIN or schedule the RTRP test

•www.irs.gov/taxpros/tests for details about RTRP test

•www.irs.gov/taxpros/ce for list of approved providers for test prep courses and CE requirements

Stay in the know! Follow us on social media at:

•www.facebook.com/IRStaxpros

•www.linkedin.com/company/IRStaxpros

•www.twitter.com/IRStaxpros

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