Tax preparers with no credentials who pass IRS’ competency test will be able to prepare all types of tax returns, according to the the IRS. Even though the upcoming testing will only cover only the 1040 series
of returns and their schedules, folks who pass the exam won’t be restricted to 1040s.
They will be allowed to prepare other types of returns, such as Form 1120, 1120S, 1065 and 990.
At some point in the future, the IRS will expand testing beyond the 1040 to limit preparation of those returns
to people whom have some knowledge and can pass minimum standards tested by the exams. This will not occur for several years.
Also, tax preparers with no credentials will have until the end of 2013 to pass the 1040 examination.
In the interim, they can prepare any type of return so long as they have registered with IRS.