Preparation for the Registered Tax Return Preparer Test

1. Steven R. Phillips, CPA Preparation for the Registered Tax Return Preparer Test

2. Agenda • Background • Pre-test • Testing • Post-test

3. Test Development Background • Job skills analysis • Test specifications and blueprint • Determination of test domains • Development of test questions

4. Test Specifications Blueprint • Preliminary work and collection of taxpayer data • Treatment of income and assets • Deductions and credits • Other taxes • Completion of the filing process • Practices and procedures • Ethics

5. Study Recommendations • Publication 17, Your Federal Income Tax • Form 1040, U.S. Individual Income Tax Return • Form 1040 Instructions • Circular 230, Regulations Governing Practice before the Internal Revenue Service • Publication 334, Tax Guide for Small Business • Publication 970, Tax Benefits for Education • Form 8867, Paid Preparers Earned Income Credit Checklist • Form 2848, Power of Attorney and Declaration of Representative • Form 2848 Instructions

6. Study Recommendations (Cont’d.) • Publication 1345, Handbook for Authorized IRS e-file Providers • Form 6251, Alternative Minimum Tax – Individuals • Form 6251 Instructions • Form 8879, IRS e-File Signature Authorization • Publication 596, Earned Income Credit (EIC) • Form 8821, Tax Information Authorization • Publication 4600, Safeguarding Taxpayer Information Quick Reference Guide for Businesses

7. Test Appointment Scheduling • Testing requires PTIN • Test must be passed only once • Candidate may re-test as often as needed • $116 fee each time tested • 263 U.S.-based Prometric testing centers • We are still working on guidance for foreign preparer testing

8. Test Appointment Scheduling (Cont’d.) • Candidates may schedule a test appointment: • with provisional PTIN • through their PTIN account at IRS.gov/ptin Year-round testing began Nov. 30, 2011 • Testing appointment changes or cancellations • No fee if 30+ days prior to original appointment • $35 fee if 5-29 days prior • $116 fee for less than 5 days prior

9. Test Administration Logistics • Test length: 120 questions, 2 ½ hours • 20 experimental questions not graded • Electronic access to references materials (Pub 17, Form 1040 and Instructions) provided during testing • No other reference materials permitted • Handheld/onscreen calculators provided • Questions are multiple choice, except True/False Ethics questions

10. Test Center Arrival Checklist • Candidates should arrive at least 30 minutes prior to appointment time • Government-issued ID containing photo and signature is required • Personal items must be stored in lockers

11. Computer-Based Testing Benefits • 20-minute tutorial available prior to test • Online reference materials provided • May mark items for later review • Easy navigation of questions • Post-test customer satisfaction survey • Score report provided immediately

12. Mandatory Non-Disclosure Agreement “This exam is made available to you, the examinee, solely for the purpose of assessing your proficiency level in the skill area referenced in the title of this exam. You are expressly prohibited from disclosing, publishing, reproducing, or transmitting this exam, in whole or in part, in any form or by any means, verbal or written, electronic or mechanical, for any purpose, without the prior express written permission of the IRS.”

13. Post-Test Results • Computer-based testers • receive results immediately at the test center • will receive printed score report prior to leaving the test center the day of testing • 50-500 scale

14. Post-TestPassing Score Results • Passing score will be minimal competency level • Passing candidates: • Receive a passing indicator • no score will be provided • Passing score range: 350 – 500 • PTIN account updated to reflect that the preparer has completed the testing requirement • Certificate mailed within 7-10 business days (assuming no data discrepancy or outstanding tax compliance issues)

15. Post-TestFailing Score Results • Receive score • Diagnostics provided: • considerably below minimally acceptable score • marginally below minimally acceptable • at or above minimally acceptable • May re-test as often as necessary • $116 fee for each test scheduling • No limit for number of re-tests

16. Post-Test Failing Score Results (Cont’d.) • No minimum waiting period between tests • Candidate must access their PTIN account at IRS.gov/ptin to schedule retest • Registered tax return preparer candidates must meet all requirements: • be 18 years of age • pass competency test • pass tax compliance check

17. Test Now – Don’t Delay! • Increase your credibility by obtaining your RTRP credential • Avoid the last minute rush 2011 tax law is now in effect – take it while the law is still fresh • Conveniently test while attending a 2012 Nationwide Tax Forum • The public database is coming soon – become an RTRP before it launches

18. Ethics Portion of Exam • This is the only part of the Exam that is T/F, • 3 incorrect answers are NOT COUNTED, • Must answer 9 of 15 correct to pass the exam (60%), • If you do not pass the ethics section, you fail the entire exam, no matter what your score on the rest of the exam.

19. Colorado Testing Sites • Colorado Springs, • Englewood, • Grand Junction, • Longmont.

20. Visit IRS.gov/taxpros/tests • Candidate Information Bulletin • What to Expect on Test Day instructional video • Test tutorial • Test Specifications Blueprint • A list of approved CE providers that offer test prep courses (receive CE credits for a limited time) • Much more!