Proposed Rules Would Force Tax CPAs to Register with IRS and Pay Fee

The IRS is proposing to make CPA tax practitioners re-register their preparer tax identification numbers (PTINS) and pay a registration fee, as part of its effort to better regulate the tax preparation industry, according to agency spokespersonal Dianne M. Besunder.

Besunder said that Jan 1, 2011 is the "current target date for requiring all paid signing preparers to be registered" and use a PTIN. Besunder said that the "modest" fee amount has not yet been set by the agency, and noted that CPAs would not be subject to the proposed competency testing or continuing professional education requirements at this time, though the agency has stated that it is keeping that option open.

New York state recently implemented a similar effort, but the state law excludes both New York state and out-of-state CPAs from the requirements.

The IRS posted on their site Monday FAQs on the proposed requirements.

A sample from the IRS FAQs:

Will individuals who are active attorneys, certified public accountants or enrolled agents be required to obtain a PTIN if they do not prepare all or substantially all or sign any tax returns? (revised 3/29/10)

Attorneys, certified public accountants and enrolled agents do not need to obtain a PTIN unless they prepare all or substantially all of a federal tax return for compensation or sign one or more federal tax returns for compensation.