|IRS Reminds Tax Return Preparers of Changes|
The US Internal Revenue Service (IRS) has reminded tax return preparers of major upcoming changes in 2016 regarding the representation of clients before the agency, and disclosed that preparers will soon pay less for a preparer tax identification number (PTIN).
Effective for tax returns and claims for refunds prepared and signed after December 31, 2015, the limited right to represent clients before the IRS held by non-credentialed preparers will be accorded to only those participating in the Annual Filing Season Program, upon completion of up to 18 hours of IRS-approved education.
They will be able to represent taxpayers whose returns they prepared and signed, but only before revenue agents, customer service representatives, and similar IRS employees, including the Taxpayer Advocate Service.
There are no changes to representation rules for enrolled agents, certified public accountants, and attorneys. These tax professionals continue to have unlimited practice rights and can represent any taxpayer before any IRS office, including collection and appeals, regardless of whether they prepared the tax return in question.
The IRS also announced that, with effect from November 1 this year, the annual fee for 2016 PTINs will be USD50 for both new applications and renewals. The IRS will collect USD33 as a user fee to support program costs and a third-party vendor will receive USD17 to operate the online system and provide customer support.
In preparation for the fee change, PTIN open season, which normally begins in mid-October, will begin in early November. PTIN open season is when the IRS begins accepting renewals and new registrations for the upcoming year.
Federal agencies are required to review user fees every other year and make adjustments as appropriate. The current PTIN fees are USD64.25 for a new registration and USD63 for a renewal.
The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.
Published on our website on Nov.03, 2015