This web page will contain the latest information regarding the new requirements for tax preparers. It will be updated regularly as soon as new information is available.

Yesterday, May 19th I attended a CTEC Meeting in Sacramento regarding the new IRS regulations and how they impact CTEC. The following is a summary of the meeting.

Beginning in 2011, tax return preparers who prepare all, or substantially all, of a Federal tax return (for compensation) will be subject to new requirements including:

Tax preparers will be able to register starting on September 1, 2010. They will need a PTIN in order to register. There is no information available from the IRS as to how to register. In California tax preparers will have to be registered by CTEC and by the IRS. That is, tax preparers will have two registrations. It is believed that the IRS will give more information within 30 days.

Tax preparers will need to take a IRS test every three years. This test is in addition to any other test such as the test taken with The Tax Institute.

Tax preparers will need to renew their registration with the IRS every three years. They will in addition to taking a test need 45 hours of continuing education. (15 hour per year) They must be federal hours and they must include a minimum of 2 hours of ethics and 3 hours of federal update. The continuing education must be approved by the IRS. Those that register with the IRS between September 1 and December 31, 2010 will not need to take a test until 3 years later. The IRS's continuing education requirement will only be required when renewing your IRS registration every three years. Those completing our CTEC course, renewing their registration with CTEC and registering with the IRS between September 1, 2010 and Dec. 31, 2010 will be able to prepare taxes in 2011. They will not need to take another test nor will they need any further continuing education. The IRS's test and the continuing education will be for renewing the IRS registration and will be required once every three years so those that those who register between Sept. 1 - Dec. 31, 2010 will not need to worry about the test with the IRS until 2013. They will also need to show 15 hours of continuing education per year when they renew their registration.

CTEC and The Tax Institute are working hard to have the continuing education with CTEC valid for IRS purposes. This way you will not have to take two continuing education courses.

At this moment the IRS has released very few details and nothing is written on stone. As soon as we have more information we will post it here.

The following are links to several IRS reports and links that have information regarding the new regulations.

Proposed requirements link

How to obtain a PTIN

Shulman Report link

CTEC Twitter

CTEC Media Room

IRS Webminar 6/9/10 on new requirements