The IRS is gearing up a program under which paid return preparers must meet certain requirements, including passing a competency exam, unless they hold certain credentials (for example, attorneys, CPAs and enrolled agents). The deadline for passing the exam is December 31, 2013. According to an information sheet released by the IRS, the 2½-hour exam includes multiple choice and true-false questions, and will be administered at Prometric testing centers at a fee of $116. Those who fail the exam can take it again without limit but the fee applies to each sitting. Participants will not be permitted to bring materials into the exam but will have access to Form 1040 and Publication 17.
Comment: Although access to these items may seem to make the exam quite easy, it makes sense to allow them because in actual practice return preparers can refer to these items.
Details on the IRS program are available in their guide to PTIN requirements.
