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Posted 9/16/11

IRS ANNOUNCES THAT THE COMPETENCY EXAM WILL BE AVAILABLE IN OCTOBER, POSTS STUDY MATERIALS

The IRS has announced that the Registered Tax Return Preparers competency exam will be available starting in October. If you plan on taking it in the next few months, the forms and publications you should study are from tax year 2010. A list of the 2010 versions are now on a new IRS information page, http://www.irs.gov/taxpros/article/0,,id=243833,00.html. The list also appears below. Alternatively, you can navigate to the page by going to www.irs.gov. Then select the Tax Professionals tab at the top. Click on "PTIN Requirements" in the left navigator. On the PTIN page on the right under "Next Step" click on the link for "Competency Test."

IRS Recommended Study Materials And Test Information

Set forth below is information from the new IRS Competency Test information page.

*NOTE: At the time the 2010 version of Publication 17 went to press, there were certain tax benefits that had not been finalized and several tax benefits were subsequently extended. See Legislative Changes Affecting the 2010 Publication 17 for the details needed for study purposes.

Scheduling a Test:

In order to take the test, you must have a PTIN. You can schedule your test directly from your online PTIN account.

Test Logistics:

  • Candidate Information Bulletin (coming soon)
  • What to expect on test day (coming soon)
  • Test center locations (coming soon)
  • Results reported on the RTRP test (coming soon)
  • Frequently Asked Questions

IRS RELEASES COMPETENCY TEST SPECIFICATIONS; TWO TO THREE HOURS, 120 QUESTIONS

The IRS has released the specifications for the competency test individuals must pass to become a Registered Tax Return Preparer. The specifications identify the major topics that will be covered by the test, which will be available starting this Fall. Although individuals who already have a provisional preparer tax identification number (PTIN) from the IRS do not have to pass the exam until December 31, 2013, they may take the exam at any time once it is available.

The test will have approximately 120 questions in a combination of multiple choice and true or false format. Questions will be weighted and individuals will receive a pass or fail score, with diagnostic feedback provided to those who fail.

Test vendor Prometric Inc. worked with the IRS and the tax preparer community to develop the test. The time limit for the test is expected to be between two and three hours. The test must be taken at one of the roughly 260 Prometric facilities nationwide.

To assist in test preparation, the following is a list of recommended study materials. This list is not all-encompassing, but a highlight of what the test candidates will need to know.

Some reference materials will be available to individuals when they are taking the test. Prometric will provide individuals with Publication 17, Form 1040 and Form 1040 instructions as reference materials.

The fee for the test has not been finalized but is expected to be between $100 and $125, which is separate from the PTIN user fee. Currently there is no limit on the number of times preparers can take the test, but they must pay the fee each time. Individuals must pass the test only once.

The IRS will notify those preparers who have a testing requirement and provide more details. Once the test is available, preparers who have on-line accounts can use their accounts to schedule a test time and select a Prometric site.

The IRS also posted this further note: At the time the current version of Publication 17 went to press, there were certain tax benefits that had not been finalized and several tax benefits were subsequently extended. See Legislative Changes Affecting the 2010 Publication 17 on IRS.gov for the details needed for study purposes.

COMPETENCY TEST SPECIFICATIONS

Follow the link below to view the Competency Test Specifications.

IRS Return Preparer Test Specifications Download