The IRS is getting ready for competency testing of unlicensed tax preparers. These are preparers of individual returns who aren’t lawyers, CPAs or enrolled agents.
According to new IRS regulations unlicensed preparers who’ve already registered with IRS have until the end of 2013 to pass a minimum standards test.
When they registered, the Service gave them a provisional tax identification number to process tax returns. Once or if they pass the competency test, the provisional designation will be removed.
Testing won’t begin until this fall at the earliest. IRS is still soliciting comments from the public about what the test should cover and the format…multiple choice, short-answer questions, tax computation problems or some combination of these. My guess will be that it will be multiple choice to simplify the scoring and take away the objectivity.
Once the test is offered, IRS will issue guidance on the continuing education rules.