Regarding the new rules the IRS is implementing to enhance oversight over the tax preparation industry, there is a transition period between the beginning of January 1, 2011, when all tax return preparers are required to register and obtain a PTIN and ending on December 31, 2013 when all provisional PTINs will expire.

The steps to follow toward becoming a candidate to the IRS exam and complete the competency examination process will vary

depending on whether you initiate it before the initial test offering date (Fall/2011) or you decide to start it after that date.

 
Before the initial test offering date, first of all you should have a PTIN - Preparer Tax Identification Number. The IRS has

announced that it will continue issuing provisional PTINs until at least April 18, 2012. You can obtain your PTIN by applying

online in the IRS website.
 
 

For more details please, read the article "What Are the Steps to Become a Registered Tax Return Preparer (RTRP)

As your provisory PTIN is valid until December 31, 2013, you have until that date to pass the exam. After April 18, 2012, you must first pass the exam in order to get your PTIN. And, without the PTIN you cannot work as a professional tax return preparer.

So, registration for a PTIN before the initial testing becomes available is a critical factor. Why? Because once the competency exam has been released,  the IRS no longer will assign a provisory PTIN to someone until that candidate passes the competency examination. 

This means that, if for some reason you don't get your PTIN before April 18, 2012, you are missing your chance to benefit

from the transition period going until December 31, 2013 and be able to work with a provisory PTIN until you  pass your exam.

Registering and obtaining a PTIN before the competency examination, which begins in the Fall 2011, allows you the following options:

•  You can renew your provisional PTIN up until December 31, 2013.
• You have time until December 31, 2013 to take the Competency Examination. After that, you must register first pass the exam in order to get a PTIN.
• You have to comply with continuing education requirement during the transition period (Jan1, 2011 to Dec 31, 2013). 
• You are subject to applicable duties and restrictions relating to practice before the IRS under Circular 230 during the transition period and after you become a RTRP.
• You must never engage in disreputable conduct under Section 10.51 of Circular 230.
• Your provisional PTIN may be revoked by the IRS if you violate Circular 230 duties and restrictions before, or after you become a RTRP. 

Again, if you obtain your PTIN after the initial test offering date (extended to April 18, 2012), you have to pass the competency examination requeriment first before the IRS will issue a PTIN number to you. 

Hopefully, in time all those new rules the IRS is launching to enhance oversight over the tax preparation industry will create a positive impact on the overall industry. And hopefully, a more valuable and prestigious tax return preparer career will be enhanced by a thoroughly competent and ethical performance.
 

New rules always yield controversial reactions. The competency examination is part of the new rules of the game and it should get your attention. It takes time to prepare for any competency or certification exam and usually the preparation process is expensive in time and money.

Having the right material, the right plan and the right attitude is crucial, to pass any exam. It will spare you, as a candidate to the IRS exam, from going from failure to failure and spending a lot of money.
 

Be proactive and take the first step toward becoming informed about what is involved in the process of preparation and taking the IRS competency examination. Know more about 1040 Exam Prep in our website  

http://1040examprep.com/