Part III. — Internal Revenue Bulletin 2011-43

Guidance Regarding Obtaining and Renewing PTINs and Continuing Education Requirements for Registered Tax Return Preparers

Notice 2011–80

Purpose

This notice provides guidance to individuals who have or will obtain a preparer tax identification number (PTIN), including a provisional PTIN, or who become registered tax return preparers. Section 1 of this notice provides guidance regarding the last date that provisional PTINs may be obtained, provides that provisional PTINs must be continually maintained, and clarifies that, beginning in 2012, provisional PTIN holders must complete continuing education requirements. Section 2 of this notice provides guidance regarding PTIN (including provisional PTIN) renewal, section 3 provides that certain individuals must be fingerprinted and pass a suitability check prior to obtaining a PTIN, and section 4 provides guidance regarding continuing education requirements for registered tax return preparers.

Background

The Treasury Department and the IRS are implementing the recommendations contained in Publication 4832, “Return Preparer Review.” As part of this implementation, the Treasury Department and the IRS have published final regulations (T.D. 9527, 2011–27 I.R.B. 1 [76 FR 32286]) that include registered tax return preparers as practitioners under 31 CFR Part 10 (reprinted as Treasury Department Circular 230).

In addition, the Treasury Department and the IRS published final regulations under section 6109 (T.D. 9501, 2010–46 I.R.B. 651 [75 FR 60309]) providing that after December 31, 2010, all individuals who prepare all or substantially all of a tax return or claim for refund for compensation must have a PTIN that was applied for and received at the time and in the manner prescribed by the IRS and must use that PTIN as their sole identifying number. The Treasury Department and

the IRS also published final regulations (T.D. 9503, 2010–47 I.R.B. 706 [75 FR 60316]) requiring individuals to pay a $50 user fee to the IRS, plus any IRS-approved fee charged by the third-party vendor, to initially obtain and to annually renew a PTIN. Under the section 6109 regulations, only attorneys, certified public accountants, enrolled agents, registered tax return preparers, and individuals authorized under § 1.6109–2(h) are eligible to receive a PTIN.

In section 1 of Notice 2011–6, 2011–3 I.R.B. 315, the IRS identified two additional groups of individuals who are eligible under § 1.6109–2(h) to obtain a PTIN: (1) specified individuals who are supervised by the attorney, certified public accountant, enrolled agent, enrolled retirement plan agent, or enrolled actuary who signs the tax return or claim for refund prepared by the individual and (2) individuals who certify they do not prepare or assist in the preparation of all or substantially all of any tax return or claim for refund covered by a competency examination (Form 1040 series tax returns and accompanying schedules until further notice). Section 2 of Notice 2011–6 further provides that individuals who are not attorneys, certified public accountants, or enrolled agents may obtain a provisional PTIN before the date that the registered tax return preparer competency examination is first offered (initial test offering date).

For purposes of this notice, individuals who obtain a provisional PTIN under the terms of section 2 of Notice 2011–6 are “provisional PTIN holders.” Individuals who obtain a PTIN under section 1 of Notice 2011–6 are not provisional PTIN holders.

Section 1: Provisional PTINs

a. Deadline To Obtain a Provisional PTIN

In Notice 2011–6, the IRS announced that it did not expect to offer the registered tax return preparer competency examination before mid–2011 and, once the examination was offered, the IRS would no longer issue provisional PTINs. The IRS currently does not expect to offer the competency examination before Fall 2011.

The IRS, therefore, will continue to issue provisional PTINs until at least April 18, 2012, to allow individuals sufficient time to prepare for the competency examination and to prevent disruption of the 2012 filing season. The IRS will announce the last date it will issue provisional PTINs in a news release issued at least 30 days before that date. The IRS will issue provisional PTINs until the designated date regardless of the initial test offering date.

The provisions of section 2 of Notice 2011–6 will continue to apply to provisional PTIN holders regardless of the date the provisional PTIN is obtained. Thus, all provisional PTIN holders must comply with both section 2 of Notice 2011–6 and the applicable provisions of this notice.

b. Provisional PTINs Must be Continually Maintained

Individuals who obtain a provisional PTIN may retain the provisional PTIN until December 31, 2013. Individuals who have a provisional PTIN during this period, however, must annually renew and continually maintain the provisional PTIN to retain the ability to prepare tax returns or claims for refund for compensation until December 31, 2013. If an individual allows the provisional PTIN to expire, the individual must become a registered tax return preparer or other authorized individual under § 1.6109–2 to be eligible to obtain a PTIN and to prepare all or substantially all of a tax return or claim for refund for compensation. See section 2 of this notice for the requirement to renew provisional PTINs on a calendar year basis.

c. Continuing Education Requirements for Provisional PTIN Holders

Section 10.6(d)(4) of Circular 230 requires registered tax return preparers to renew their status as a registered tax return preparer as prescribed by the IRS in forms, instructions, or other appropriate guidance. As a condition of renewal, section 10.6(e) provides that registered tax return preparers must complete minimum continuing education requirements. Section 2.04 of Notice 2011–6 provides that tax return preparers who obtain a provisional PTIN before October 1, 2011 are not

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lations proposing to establish a user fee to be fingerprinted. It is anticipated that the third-party vendor will also charge a reasonable, IRS-approved fee for its fingerprinting services.

Additionally, under the current proposed regulations any participant in the PTIN, acceptance agent, or authorized e-file provider programs who resides and is employed outside of the United States will not have to be fingerprinted to participate in these programs. Such persons, however, must comply with all other elements of the suitability check. In addition, the Treasury Department and the IRS continue to study what additional requirements should apply to such persons. Any additional requirements would be set forth in future guidance.

The IRS will not require individuals to be fingerprinted prior to obtaining a PTIN until at least April 18, 2012. The IRS will announce the last date that an individual may receive a PTIN (or provisional PTIN) without first being fingerprinted in a news release issued at least 30 days before that date. After this date, individuals not exempted from the fingerprint requirement must be fingerprinted and pass the background check prior to obtaining a PTIN (provisional PTINs will no longer be available after the date provided in the news release).

In addition, individuals who obtain a PTIN (or a provisional PTIN) prior to the date provided in the news release and who continually maintain their PTIN will not be required to be fingerprinted until December 31, 2013. After December 31, 2013, these individuals must be fingerprinted and pass the background check before renewing their PTIN unless they were already fingerprinted or are not required to be fingerprinted.