Registered Tax Return Preparer Competency Test 2012

To ensure competency and professional standards in the tax preparation industry, IRS has announced a new designation: Registered Tax Return Preparer (RTRP)

The test consists of 120 questions and has a perfect score of 500. Minimum score to receive a passing grade is 350. In addition to the test, it is also required to pass the tax compliance check performed by the IRS, which is generally completed within a couple of weeks after the test score is issued.

The test can be scheduled at IRS.gov/ptin and can be taken at more than 260 sites at Prometric test centers in most major metropolitan areas.

The testing fee is $116 and the results are available immediately after completion of the test at the test center.  The testing will be suspended for a two week period  between April 1, 2012 and April 15, 2012.

Refer IRS.gov/taxpros/tests

RTRP Exemption Criteria:

·         Certified Public accountants, attorneys, enrolled agents

·         Non-signing preparers who are supervised by Certified Public accountants, attorneys, enrolled agents

·         Preparers who do not prepare Form 1040 series.

RTRP Test Content Outline

The test domain areas consist of :

1.       Preliminary Work and Collection of Taxpayer Data

2.       Treatment of Income and Assests

3.       Deductions and Credits

4.       Other Taxes

5.       Completion of the Filing Process

6.       Practices and Procedures

7.       Ethics

Pre-test study material for RTRP 2012:

• Circular 230, Regulations Governing Practice before the Internal Revenue Service (Rev. 8-2011)

• Form 1040, U.S. Individual Income Tax Return (2010)

• Form 1040 Instructions (2010)

• Form 2848, Power of Attorney and Declaration of Representative (Rev. 6-2008)

• Form 2848 Instructions (Rev. 6-2008)

• Form 6251, Alternative Minimum Tax – Individuals (2010)

• Form 6251 Instructions (2010)

• Form 8821, Tax Information Authorization (Rev. 8-2008)

• Form 8867, Paid Preparers Earned Income Credit Checklist (Rev. 12-2009)

• Form 8879, IRS e-File Signature Authorization (2010)

• Publication 17, Your Federal Income Tax* (2010)

• Publication 334, Tax Guide for Small Business (2010)

• Publication 596, Earned Income Credit (EIC) (2010)

• Publication 970, Tax Benefits for Education (2010)

• Publication 1345, Handbook for Authorized IRS e-file Providers (2010)

• Publication 4600, Safeguarding Taxpayer Information Quick Reference Guide for

Businesses (Rev. 10-2008)