The Internal Revenue Service is giving tax preparers a chance to make up their continuing education hours if they didn’t complete all of the required hours by the end of last year.
As part of its effort to regulate the tax preparation profession, the IRS began requiring Registered Tax Return Preparers to complete 15 hours of continuing education last year after passing their competency tests and renewing their Preparer Tax Identification Numbers (see IRS Warns Tax Preparers to Get Continuing Education, Posts List of Providers).
However, a number of tax preparers were not able to complete all 15 hours, so the IRS said on its Facebook page that it is allowing them to make up for any of those hours, but they still need to complete another 15 hours of continuing education this year.
“We've received some questions from people who didn't get their 15 hours of CE completed in 2012,” said the IRS Facebook post. “Here’s the deal: In addition to the 15 hour requirement for 2013, you must also make up any hours not completed in 2012. There is no need to designate or notify us that hours earned in 2013 are for 2012. Be sure to keep records of the programs you attend. Additionally, for those people who answered ‘no’ to the CE requirement question on their PTIN renewal, we will be sending them a letter soon advising them they are still responsible for the hours.”
32 Comments
Not to be snooty - but if you had all year to get the $20 together for the CE courses and you failed to get the funds to pay for the courses - then you are in the wrong business or someone has a priority issue - For me - the day befor e new years was set aside to take the courses on the software providers site and cch. new years eve - day the tests were done and credits completed all costing about $30 - for those that ckaim that they do not have internet - I guess you will be filing a lot of waiver requests for reasons why you are sending signed returns theu mail.... but even a tree house in wooded preservation areas in Trapp Maryland has accessibility thru sat. wifi - as I tried it one morning in a tree stand made for deer hunters - and that costs less than $25 per month - but maybe it just comes down to ther idea of being forced to change to electronics and it sorta resonates like the second amendment to gun owners - then again Ive checked and there no COnstitutional provisions that claim tax prep procedures are a right nor a prev. - But seriously - go in your files and pull some 1999 returns - done in hand printed - better still corrections of errors by irs were returned with scribbles all over the original - Is anyone seriously longing for the non program know it all or fail the client systems of the old days - if you are - may I suggest setting up shop in another solar system - rarely do I support the IRS - this is when it gives me Angina when I do - so here goes - yes they were slow - but now that they have enacted something that just might close down the tax preparer living under a highway overpass (great business exposure point)in a U-Haul Storage box (they tend to be the sturdiest for business use) with a shingle hanging out the door saying Tax preparer and Jypsy crystal Ball readings (tarrot cards no longer profitable) I welcome the effort - I do feel for those that this initial push of implementation causes dispair - But dont you think it is a response that is getting a little old - When have you ever experienced a new reg procedure IRS implimentation that has proven with vir. no real hangups or major glitches - causing reworking and modification numerous times? NEVER - saying otherwise and you are a liar - so give them "cudos " for trying to provide some realist sense that the tax professionals have some credibility and have not gone to the preverbisl "underpass tax and spiritual reading pro.<
Posted by: Eric2601 | January 22, 2013 4:26 AM
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FEES FOR BEING CERTIFIED IN 3 AREAS ARE QUITE HIGH AND CE in all 3 areas OVERLAP TAX SEASON, BUT I WAS ABLE TO DO IT THANKS TO SOME ONLINE CPE COMPANIES OFFERING EXTENDED SEMINARS THROUGH CHRISTMAS AND AFTER CHRISTMAS. HOWEVER IF I HAD BEEN IN A HARD HIT AREA WITHOUT INTERNET ACCESS LIKE SOME FOLKS STILL EVN TODAY JAN 15,2013 ARE IN NJ AND NY THERE IS NO WAY THEY COULD HAVE GOTTEN THEIR CPE DONE BY JANUARY 1. IF YOU HAVE THE RIGHT ZIP CODE THEY SHOULD BE EXEMPT
Posted by: DDTS | January 14, 2013 11:07 PM
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Some of us have multiple credentials and multiple requirements for states as well; especially if you practice in one of those tri-state areas. like DC-MD-VA OR CT NJ-NY plus NYC Then you also had a Hurricane SAndy to deal with in that area as well.
THE IRS probably found out a LOT of PEOPLE HAVEN'T and will NOT take the RTRP test because they feel their experience and level qualifies them to be EA's. Plus some of us still think the IRS is overstepping its boundaries telling us that we can't advise clients especially if we are REGISTERED Investment Advisors or CFP's . Sill waiting for that court case to come up you have got to be kidding me telling us we cannot advise clients. why are we registered with FINRA and SEC then... so another government agency can self- impose and tell us we can't do our business. Also now the TAX SOFTWARE COMPANIES like INTUIT want to compete by offering their on staff EA'S , CPA'S and JD'S to compete for the marketplace as well. Isn't steve Cook making 15 million a year selling software alone; now in addition to the professional software market they want to compete with their clients as well... THE BOTTOM LINE IS OF THE 300,000 eligible RTRP LESS THEN 5 PERCENT HAVE TAKEN AND PASSED THE TEST. Now I don't mind the continuing education requirements the fingerprints and the payment of a yearly fee plus registration. BUT I do mind GOVERNMENT INTERVENTION AND TELLING ME HOW TO RUN MY BUSINESS. ESPECIALLY WHEN I HAVE BEEN VERY SUCCUSSFUL AT IT FOR 20 YEARS..
Posted by: DDTS | January 14, 2013 11:01 PM
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I run my own business and need 120 credit hours every 3 years to keep my CPA license. I am always over by at least 75-80 hours over the 3 year period without breaking a sweat. There is so much continuing education available so I don't understand all the excuses.....if you want the credential, this is what it takes to keep it. nuff said
Posted by: Kathleen O | January 14, 2013 2:18 PM
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One of the requirements before you register is that you have your own tax returns completely caught up and finished. Maybe they didn't have those done. Could have been a lot of different reasons for delay. Quit condemning!! If the you think there are slackers, wait, the cream will rise to the top. There is a lot of turnover in this business. Testing never stops. You can ALWAYS learn something in this business. I encourage preparers to get more knowledgeable about the laws though. There are some who make me feel working around them, that they are treading the fine line of dishonesty. And that's why any preparer should be one of the first to sink to the bottom. Loyalty above all, except honor.
Posted by: oneilln | January 12, 2013 12:04 AM
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Considering that you can get tons of qualifying CPE for FREE (albeit not all in one sitting or test), sorry I'm not buying the lack of finances argument. And for Mr. CFP, did you stop to consider WHY the IRS doesn't hold your credential at the same level as Attorneys, CPAs, and EAs? That you need to ask the question clearly indicates why you don't get the same treatment.
Posted by: davew128 | January 11, 2013 9:26 PM
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I agree with garyh but one thing that many preparers have overlooked and that is the "ghost preparers" that are going to surface especially in low income & urban areas. I like the requirements but I do believe that there are a lot of preparers that are going to do "self-prepared" returns for a fee. Some will even use the IRS website (unlimited returns with no software to buy)
Posted by: JohnnyJ | January 11, 2013 4:33 PM
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We have a small family owned practice and I knew that this would happen and what's worse is that the folks who delayed really have no incentive to change their behavior. Since all the IRS wants is to generate revinue. They should have a $10 per credit penalty for each month behind they are. this would assure a lot of quick studies and the rest of us will not feel like such fools.
Posted by: taxnancy | January 11, 2013 4:01 PM
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I am disappointed that people of the supposed caliber of PROFESSIONALS would stoop so low as to slander or belittle their peers. Regardless of anyone's financial or personal hardship, we are supposed to be adults, capable of treating each other with the respect that we would hope to be ourselves treated by others. SHAME ON YOU! If I were your client and heard that you spoke so flippantly and in such derogatory manor towards another human being, I would question your ethical standards.
I have a degree in Accounting and I am the sole proprietor of a small Income Tax Preparation service that I have run from my home for the past 8 years. Prior to that I worked at H & R Block for 8 more years so my education in the field is extensive. Despite great familial turmoil this past year, my son having been in and out of the hospital five times, I was able to at the eleventh hour complete the online classes that my software provider was generous enough to offer at a great discount. Had it not been for that discount, I would not have been able to take the required classes.
While I agree that rules are to be followed, I am grateful that had I needed it, a bit more time would have been allowed. The IRS offers and has always offered extensions of time to file tax returns, so why should they not in this situation. Perhaps they saw that there were more than just a few that would need the time. There were, after all, just a few natural disasters this past year. If you had been one of the thousands of tax preparers whose offices and homes were located within one of those areas I am certain that you would welcome the extension of time.
Before you speak ill of others, imagine yourself in their situation. If you can't empathize with your peers, how in the world can you help your clients who may be less fortunate than yourself?
Posted by: rennaemcintosh | January 11, 2013 2:36 PM
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to unknown - sorry to hear about your making ends meet but then to we have all been there. next time, before you put out so much money, check with other places to see if you can get a better deal. i used fast forward academy and the total fee was about $160 which is pretty high. however, i was very impressed with everything they had and the services they rendered. very personal and you could talk directly to real people.
i do commend you for your ambition. the "lazy" terminology pertains to probably 95% who are just lazy!! not because they have a hardship.
keep the faith, work hard and play with your children as often as possible.
wgs16191
Posted by: wgs16191 | January 11, 2013 2:22 PM
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If you are going to make a rule ... stand by it. It was just as difficult for me as a small tax firm, just beginning to expand. I took the classes, and sat for the exam which I passed on first try.
You want to do whatever it takes to be the best and set yourself apart from those who don't care enough to try, and then the IRS lets them off the hook. Disappointed to say the least.
Posted by: gmadden | January 11, 2013 2:00 PM
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Oh man! Between my full time job, school and my kids I had no time to do it all. Then there was the cost. Almost $1,000.00 when all was said and done.
I am anything but lazy wgs16191. I am a single mom with three kids. Money got tight and they had to come first. I ran out of time and money.
When I figured I couldn't finish my CPE requirements I didn't even bother to update my PTIN. I just figured I would take this year off and work on getting all the certification done. I'll be done with my college hours this July that will free up my time.
People really should talk about things they don't know. It must be nice to live in a perfect world.
Posted by: Unknown | January 11, 2013 1:16 PM
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I applaud the IRS decision. I think some CPA's who commented have no idea what some of us non-CPA's have to go through. Me, I'm a California CFP practioner who prepares taxes, so I have CFP license fees and CE, PLUS California license fees & CE, PLUS federal PTIN fee & CE. To make is even more fun, one reports May-April, one Nov.-Oct., and one Jan.-Dec. Not all CE qualifies for all three either. Plus I paid and studied for (and passed on my first try) the RTRP exam. I met every requirement, but it was challenging and expensive. That included spending weeks trying to get a CE provider's failed reporting fixed.
Yesterday, I also discovered that, unlike CPA's, if I have staff doing anything more than basic return input, I have to get them RTRP licenses. CPA's don't, they get an exemption for supervising. Must be nice.
Every argument you can make to get special treatment as a CPA, I can make as a CFP practioner. College ed, extensive examination, experience, ethics requirements, significant renewal fees, etc. Yet the IRS provides us none of the benefits CPA's, EA's and attorneys receive.
So maybe you might want to consider cutting others some slack if they simply take a course a few weeks later than technically required.
Posted by: cokertax | January 11, 2013 11:48 AM
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Really this is just unbelievable! I am a one person small tax preparing business who has practiced for 31 years. I sat for the competency test which I passed on the first try. Then in October I took my classes for the 15 CPE requirements. I have a family too -so quit making excuses because you think these requirements can not be met on a timely basis. Yes things are expensive but it is also a part of doing business. My advice to those of you who have not sat for the exam nor met your CPE requirements for 2012- get out of the business because there are competent, rule abiding tax preparers who have earned the RTRP designation because they care and do not procrastinate.
Posted by: WSteinm107 | January 11, 2013 11:28 AM
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Scrolling through the reader comments, I get a sense of creeping cynicism about the IRS tax-preparer initiative--the test, the CE requirement, etc. I have passed the test myself, and agree with the one responder that it's a joke. I work for H&R Block, which has always required CE credits anyway (and with no opportunity to "make up" incomplete credits the following year), so it's no problem to amass the credits. In fact, Block this year reduced the CE requirement from 24 to 15, to align with IRS requirements.
I now predict that the ultimate outcome of the IRS initiative will be a smaller tax-prep industry as disgusted preparers drop out. The initiative will not necessarily improve the quality of tax preparation, but will overall raise the cost to clients as the number of preparers declines. And there is the matter of "ghost preparers" (those who don't sign returns) that the initiative will inevitably spawn. As with so much government regulation, one can question whether this outcome is really an improvement for the citizenry as a whole.
Posted by: janejohn | January 11, 2013 11:10 AM
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Please consider other reasons. I did my 15 hours and after I check in January 1est late night I didnt have the certificate, I found out in the web page they didnt have the result of my exam. Maybe was technical problems during the time I was taking it but nobody to call that day and that hour. So, I didnt think it twice and I begun to retake the test crossing my fingers the IRS make a concesion. I finished the test at 1:30 am January 2do. I'm living in a disaster zone.. so since November to december I couldn't think in ce. Thanks God i took the hours before all this and something make me check. So IRS thanks you.
Posted by: aimeepinedo | January 11, 2013 11:09 AM
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C'mon folks, I found the CE classes with on-line access with all 15 CE credits costing me a WHOPPING $15. It can't be that hard to find $15 even after tax season and the money is not flowing!
Posted by: ballar1p | January 11, 2013 10:55 AM
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There are a variety of reasons why taxpros may not have gotten all their hours....one of them being cost. I have had an EXTREMELY limited income since I have a small practice and other personal problems. I did, however manage to complete all my continuing ed. Many people are limited by finances. My suggestion is cpeforenrolledagents.com and funcpe.com if money is the issue and/or you need to reach your minimum number of hours.
It's true that some people manage to get hundreds of hours of CPE units while others make excuses about not even being able to get 15. But don't forget about all the folks in between. Personally, I would never have gotten into the tax business if I had a spouse or kids. If you have a family, these pressures take priority over CPE units. Moms get no breaks.
Congratulations to those who can HAVE it all and DO it all.
I agree RTRP will not make anything better. And I have my own suspicions about all these regulations and new concessions.
Posted by: andystaxes | January 11, 2013 9:07 AM
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I have maintained that the IRS should not be the organization administering the CE requirements of RTRP's. The state boards of accountancy should. Whenever a taxpayer has a complaint that needs to be resolved, the IRS is not capable of addressing these on a timely basis. The general public has very little recourse against the RTRP's and others who are not licensed to practice (CPA's and attorneys). If we do something wrong, we are called on the carpet. We have to answer to our peers. Those of you who don't want to maintain professional standards, it is time you get out of the way. I can't wait to see the malpractice suits adding up. You have a professionalstandard, adhere to it!
Posted by: hattencpa | January 11, 2013 8:44 AM
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I have no sympathy for these people whatsoever. I have little to no money as I just went out on my own in 2012 yet found a way to complete and report the 120 hours of CPE that were due at year end to keep my CPA license. There is such a proliferation of continuing ed companies out there offering free seminars I find it hard to believe that there were no alternatives for these people.
Posted by: dklugman | January 10, 2013 2:28 PM
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I've seen preparers sleep through classes, leave early after signing, take open book tests, take irrelevant courses, and still know nothing.
Subjects should be limited, with closed book tests. And I'm not speaking of where the break points are for tax rates, etc, but procedures. Memorizing at what taxable income the rate goes from 10 to 15% is of no value. If one doesn't know where to look it up if necessary, that fool has no business doing taxes.
Posted by: tego@verizon.net | January 10, 2013 2:27 PM
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here's an announcement for those that couldn't or wouldn't get their lousy 15 hours in: Don't sit for the CPA exam. You'll never be able to get those requirements in during a year.
I'm unpleasantly surprised that the IRS thinks 15 hours is enough to drag the level of compliance to a higher standard. Won't happen. Also won't change all of those "secret" preparers that don't seem to be proud enough of their work to sign their names as the preparer.
Posted by: topbeancounter | January 10, 2013 2:10 PM
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Even though I got in well over 25 hours in 2012, I still have to agree with the IRS's bit of leniency here. It'e easy to make judgemental comments & such when you're working for a larger firm, or have had your practice for several years. But those of us who are in those situations need to remember back to our early years when every hour & every dollar were preceious & hard to come by. It's a big world out there with lots of ups & downs. Just because somebody couldn't fit it all in certainly does not mean they are lazy or unqualified. Me thinks thou dust protest too much.
Posted by: Unknown | January 10, 2013 1:31 PM
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I was stressed out for months trying to get myself and my three employees in compliance with the CE requirements, but I finally got everybody legal and ready to go. And yes, it was expensive to pay for all of it. And now I find that it wasn't really necessary after all? EEEEK!!! But because we follow the rules we will do it all again this year and on time, too. Those who take a casual view of the requirements probably take an equally casual view of the accuracy of their tax returns, so I can't see the point of allowing them to do taxes this year without having met the requirements. Meeting the requirements on time should be required of all or required of nobody.
Posted by: anitamartinez | January 10, 2013 12:50 PM
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Money being an issue is just down right silly. my son got his credits for appx $45.00 and the test itself is $160? the gov is not out to screw us, its the inept taxpreparers out to screw the gov. get a life! charge everyone $10.00 more.
Posted by: wgs16191 | January 10, 2013 12:27 PM
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This not fair to the ones that got their hours on time. What's the point of those rules?
Posted by: silvia | January 10, 2013 11:38 AM
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Man, some of you people can surely come across as self-righteous butt-sticks! I am sure that there were a number who failed to complete the CE's because they are lazy or inept but, on the other hand, it might have something to do with finances. This whole process of having LTP's is becoming expensive. When you have only a small client base and you must live on the income from it year round any additional overhead stings. If the IRS is so hot on having professional tax preparers maybe they should offer a license based upon the quality of our product, not the size of our pocketbook!
Posted by: DrHoodoo | January 10, 2013 11:38 AM
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I agree this requirement would take out the slackers out. Some so called preparers have never taken classes on updates and never will as long as IRS lets them get by. If you have to do a tax return after these people you can tell they surely do not know the first thing about tax rules and laws. I have a busy accounting practice, I took the test and had over 30 hours of CPE by the end of the year. Rules and requirements are not made to be broken by a select few, it there were other reasons for not getting the required hours IRS should have made a determination on the curcumstances for individuals not a blanket get me out card!!! What would IRS do if the enrolled agents did not get their hours on time or CPA's did not get their required hours?
Posted by: oktaxlady | January 10, 2013 11:00 AM
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I agree with the above comments. There are too many inept preparers as it is. To "punish" those of us who followed the rules, to allow those who didn't is defeating the purpose. The RTRP rules could have been a way for the Treasury Department to flush out the crooks and hacks. But like everything "governmental" it too is totally screwed up. What a joke. This process has been in place since at least 2010. What good is the amendment to Circular 230 if the Treasury is going to cave on the first real teeth of RTRP? The RTRP test is a joke.
Posted by: garyh | January 10, 2013 10:35 AM
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You would think they could have squeezed in some time in the past 8 or 9 months. how can there be time for tax preparation this year if there was no time to take a few hours of courses! what could possibly be a good reason that lasted soooo long.
Posted by: wgs16191 | January 10, 2013 10:27 AM
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Perhaps there were other reasons why they could not get it done, was this consider !
Posted by: bbarron8@yahoo.com | January 10, 2013 9:43 AM
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This is a bunch of garbage. they had almost a whole year to get the credits but were too darn lazy. we dont need these people with a lack of ambition!! they should not be allowed to file returns fot the current year.
Posted by: wgs16191 | January 10, 2013 9:25 AM
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