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IRS Publishes final regulations (T.D. 9527; 76 F.R. 32286-32312) on the Circular 230 (1)

by Lisa M. Rico , posted Fri, Jun 10, 2011 6:12 PM

IRS Publishes final regulations (T.D. 9527; 76 F.R. 32286-32312) on the Circular 230 standards of practice before the IRS.

On August 2, 2011, the final regulations with respect to Circle 230 standards of practice before the IRS, which adopt, with some changes, the proposed regulations issued in 2010, become effective. The final regulations affect individuals who practice before the IRS as well as providers of continuing education programs. Under the final regulations, either preparing or filing a document may be considered practice before the IRS. The final regulations adopt new registered tax return preparer designation.  To become a registered tax return preparer, an individual pass a one-time competency exam, pass a suitability check, and obtain a preparer tax identification number.  To remain a registered tax return preparer, each year the tax preparer generally must complete a minimum of 15 credits of continuing education, renew his or her PTIN, and pay a user fee.  The final regulations can be accessed at http://www.ofr.gov/OFRUpload/OFRData/2011-13666_PI.pdf or in the Federal Register at http://www.gpo.gov/fdsys/pkg/FR-2011-06-03/pdf/FR-2011-06-03.pdf beginning at page 32286.

The IRS anticipates that tax prepares required to take the competency examination will begin taking the exam in the fall.  In IRS Notice 2011-48, the IRS has requested comments on the content and administration of the registered tax return preparer competency examination, adding that it has selected a vendor to support the development and administration of the exam for the Form 1040-series tax returns and accompanying schedules

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