New CRTP Requirements Reminder

Thursday, March 1, 2012 - 3 comments

The IRS sent out an announcement in February to remind tax preparers and education providers about its new continuing education requirements.

Effective January 1, 2012, the IRS is requiring tax preparers who are not attorneys, CPAs or EAs to start completing 15 hours of federal continuing education each year (10 hours federal tax law, 3 hours tax updates and 2 hours of ethics).  

Below is a list of the most important changes to know regarding CTEC requirements and the new IRS regulations:

• California Senate Bill 944 took effect January 1, 2012 to conform CTEC federal continuing education hours to the IRS’.
• Starting this year, CRTPs must take 15 hours federal (same breakdown as the IRS requirement) and five hours state of continuing education each year.
• CTEC will increase its late fee starting November 1, 2012. CRTPs who fail to renew their CTEC registration by October 31^st, will have to pay a $55 late fee.
• CTEC is shortening its grace period for late renewals from 12 months to six weeks. Starting 2013, CRTPs who fail to renew their CTEC registration by January 15^th of each year will need to register as a new CRTP— this includes retaking the 60-hour qualifying education course and passing an exam from a CTEC-approved education provider.
• CRTPs must have a valid Preparer Tax Identification Number (PTIN) from the IRS before they can register with CTEC.
• CRTPs must pass an IRS background check and competency exam by 2013.

 

The new IRS regulations will be one of the main topics on the agenda for the next CTEC board meeting in Sacramento on May 17-18, 2012. Call the CTEC office at (877) 850-2832 for details.

 

 

 

 

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