IRS to Begin Fingerprinting Tax Preparers

By Michael Cohn
Accounting Today
Sep. 26, 2011

The Internal Revenue Service plans to start fingerprinting thousands of tax preparers as part of its oversight program and run the fingerprints through an FBI database.

The IRS released more details on its tax preparer oversight program on Wednesday, and said registered tax return preparers would now be required to renew their Preparer Tax Identification Numbers on an annual basis. In addition, the 15-hour continuing education requirement will take effect next year.

As part of the new guidance, the IRS released Notice 2011-80, which provides that PTINs must now be renewed on a calendar year basis. All PTIN holders must renew their numbers using the online PTIN application or paper Form W-12 and pay the required fee, which will be $64.25 for next year, after Oct. 15 and before Jan. 1 on an annual basis.

The notice also clarifies a number of other issues. The IRS has been issuing provisional PTINs to individuals who are not attorneys, CPAs, or enrolled agents to allow them to prepare tax returns prior to meeting competency testing and suitability requirements because the testing and continuing education programs have not yet begun. The IRS said it would continue issuing provisional PTINs at least through April 18, 2012. Once the IRS stops issuing provisional PTINs, however, tax return preparers who are required to complete the competency test or suitability requirements must complete these requirements successfully prior to obtaining an official PTIN.

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