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IRS Launches Competency Test, Fee Will Be $116
User Fee Regulations Finalized
The IRS has launched the return preparer competency test with test scheduling to begin the week of November 28th . The fee for the competency test is $116, which includes the IRS portion of the fee and the fee for Prometric Inc., the third-party test vendor. Initial test takers will not receive their test scores for two to six weeks to allow the IRS to validate the exam and determine the pass/fail cutoff. Once validation is complete, around mid-January, those taking the computer-based test will receive their scores at the test center immediately upon completing the test.
Prometric will eventually administer the test at more than 260 centers nationally, but the test is not available at all locations currently. Test sites will be added daily, and international locations may be added in the future.
Scheduling a Test and Paying the Fee
Preparers who need to take the test can schedule an appointment beginning next week through their online PTIN account at www.irs.gov/ptin. Preparers must pay the $116 test fee at the time they are scheduling their appointment. Those who do not have an online PTIN account can make test appointments and pay by phone at 855-477-3926.
Click here for the IRS News Release on the exam.
Click here for an IRS Fact Sheet on the exam.
IRS Finalizes Competency Exam User Fee Rules
The IRS also has finalized rules for imposing a fee for the return preparer competency examination. Proposed regulations were issued on September 26, 2011 establishing the IRS's portion of the user fees for the competency examination and fingerprinting. Since that time, the IRS has backed off on its fingerprinting requirement, so no fingerprinting fee is included in the final regulations. The IRS will continue to study the fingerprinting issue and is still interested in getting comments from tax preparers on this issue.
The final regulations only finalize the user fee to take the competency examination. The fee is set at $27 each time an applicant takes the exam. The IRS said the cost is the same to the IRS and the vendor each time the exam is taken, so the same user fee will apply for each attempt. This is the IRS portion only. Prometric, the IRS testing vendor, is charging the balance of the fee. The total fee will be $116.
Despite requests to the contrary, the IRS will not exempt certain employees from taking the competency examination if they already have to take their employer's exam. Presumably, this decision relates to employees of the big tax preparation firms.
The remaining portions of the proposed regulations were adopted without substantive change.
Click here for the Final Regulations.