RedGearTech Blog

1. 12 Responses to “Registered Tax Return Preparer (RTRP) Exam Preparation”

2. It is my personal opinion that after being a
   tax preparer since 1956< I feel that I should be
   grandfather into not taking the test.
   I hae been on ATX/CCH softwere for over 10 years
   and feel that I shouldn't have to take a form
   of CPA testing. When I graduated from Business
   School with my Tax courses in 1956 and attend
   annual seminars I am qualified to continue to e-file. I only now file 1040's and to take
   your exam for Corp, Trust, Partnership, etc
   will make a decision to retire in this small
   town with no Tax Firm around, except H & R Block and they take anybody off of the street
   to imput taxes with very little training. I
   re-file 2 to 10 each year for errors, like
   college credits, unearned income, joint state
   jobs. etc.
   Allen Peterson

   By Allen H Peterson on Jan 20, 2012

3. Allen, The exam is a one time two and a half hour competency exam based on Individual Form 1040-2010 (cost $116) and has 120 questions. Then every year a quick 15 hours of CE a year which is still less than most CPA yearly CE requirements. The following link goes directly to the IRS’s website where you can lean more info about the exam! http://www.irs.gov/newsroom/article/0,,id=249971,00.html

   PS: You should be able to burn through the exam np!

   By Jake Lavine on Jan 20, 2012

4. I am an H&R Block tax preparer with 11 years experience. Contrary to popular opinion, we actually do some complex returns at Block. Many of my clients have passive loss limits, rental income, sales of business assets, etc. I myself do only 1040s, but some Block offices do 1065s and 1120s as well. Block requires annually 24 CPE credits of everyone. But I digress…
   I, too, will probably decide to “retire” from the tax industry after 2013. Based on sample questions I’ve seen, the RTRP test will require memorizing great amounts of information, whereas we rely on software for many of the determinations that we make when doing tax returns–dependent qualifications, filing requirements, other items too numerous to mention. It will be open-book, but looking up all of these details will be time-consuming. A test-taker has 2.5 hrs for 120 questions, which is barely over 1 minute per question. I don’t agree that an experienced preparer “should be able to burn through the exam”, as Jake says. My sense is that many current preparers may leave the industry, which will tend to raise tax prep fees, which in turn will force many taxpayers to prepare their own returns either manually or with retail software. It’s unclear to me if it is perhaps the IRS’s intent to reduce the number of paid preparers below the current 700,000+, but it will almost certainly be a consequence of this new testing requirement.

   By Jane Johnson on Jan 20, 2012

5. I AM TRYING TO BECOME AN ENROLLED AGENT I ALREADY PASS THE INDIVDUAL PART OF THE ENROLLED AGENT EXAM TEST I DO NOT UNDERSTAN WHY I SHOULD PASS THE SAME TEST AGAIN WHEN I HAVE THE APPROVAL FROM PROMETIC THE I PASS CAN ANY BODY INFORM ME ABOUT THIS

   THANKS

   By ANA on Jan 21, 2012

6. I am like Allen who has prepared taxes for a number of years. I have about 50 clients and in my 25 years fo preparing taxes I have had two federal returns come back to me because of an error on my part. I will be retiring after this year. The cost is not worth what I receive in income.

   By Colleen on Jan 21, 2012

7. I, too, have over 25 years in private tax practice. I attend in excess of 24 hours of annual CPE. I have reduced my client number to under 50 and will, if these onerous laws take effect as now written, leave the practice of tax preparation at the close of the 2011 TY.

   By John C McGuire on Jan 21, 2012

8. I would just like to say I don’t understand why I have to take a test, CPA’s and Attorneys don’t have to take, are they consider smarter than me, I don’t know how the IRS could know that. I have a client, who has a business and has used a CPA for serveral years, he takes care of her payroll as well as her bookkeeping, and for all of 2011 he had her to withhold and deposit 6.2% for social security for the employee as well as the employer, which means, she owes her employees money back, because she withheld to much. I caught that right off, He don’t have to a test, but I do. I think this is just a way for the goverment to make money off of us.

   By Deanna on Jan 21, 2012

9. I think IRS wants the experienced preparers out because we’re the ones who know how to save the client some money through dedications that others don’t know about or don’t use because it’s time consuming to fool with and you can’t charge accordingly. If they get rid of experience the tax payer looses out. Sad day when the government tells you how to do your job and what you can charge for it. Wonder if the taxpayer will have to take a test to do his own return. Sad Day indeed. I’m ready to hang it up too. I use to enjoy my job but not anymore.

   By Rose on Jan 21, 2012

10. I appreciate reading the additional comments since I added mine a few days ago. The new IRS preparer requirements have little to do with knowledge of the tax code,expertise or competence. Rather,the IRS simply seeks control over who can be receive pay for doing tax returns. These requirements erect new barriers to entry into the tax-prep industry, which heretofore has been open and competitive. It appears that the IRS prefers that only CPAs, attorneys, and EAs do tax returns, which the IRS euphemistically phrases as meeting a “suitability check”. The IRS seeks taxpayer assistance to enforce the new requirements, with a new form 14157, “Complaint: Tax Return Preparer.” IRS has also announced that it will query certain taxpayers whose unsigned returns are complex and appear to have been prepared by “ghost preparers”–unregistered ones who work below the IRS radar screen. These measures sounds so gestapo-like.

    By Jane Johnson on Jan 22, 2012

11. When I will be able to take the test. To have the training and pass the test.
    Please send me the information.
    Thank you
    Sincerely,
    Jean R. Saint Louis

    By JEAN ROBERT SAINT LOUIS on Jan 22, 2012

12. My wife and I have been engaged in a mom an pop tax business for over 20 years. Do 100 +/- returns per year. We too were upset about the new rules. Doing tax returns with the currently available software makes you dumb. Since the rules were announced we have enrolled in two study courses and have been studying rules and regs every day. Even if you do taxes every day, you will be surprised at how much you do not know. People with the correct attitude will become RTRPs and the public will be better off, and those of us who stay will be too.

    By PAUL KRETTLER, ROSWELL, GA on Jan 23, 2012

13. Hi Everyone,

    Regarding the question from “Jean Robert Saint Louis”, the link below will take you to an IRS page titled RTRP Competency Test Information. This will answer questions on the test requirements, scheduling a test date, etc.

    http://www.irs.gov/taxpros/article/0,,id=248902,00.html

    The main IRS PTIN renewal page has links in the right column that should answer 99% of your questions.

    http://www.irs.gov/taxpros/article/0,,id=210909,00.html

    Hope this helps.

    Alex
    RedGear Technologies

    By admin on Jan 23, 2012

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