The IRS is gearing up to impose a testing requirement on tax return preparers who lack the professional qualifications of CPAs, attorneys and enrolled agents. Those who are anticipating the need to take this exam may be interested in the specifications released by the IRS (PDF). The document lists the areas to be tested, the weights given to each area, subject matter covered within each area, and source documents for relevant information (such as IRS publications, return instructions, and Circular 230).
For the most part this document includes pretty much what you would expect. One small surprise is the inclusion of alternative minimum tax (“AMT”). Apparently the powers that be decided you aren’t competent as a return preparer unless you know the basics of this tax. Unfortunately, the IRS has never seen fit to release a publication describing how the AMT works, so the only official reference they can offer for learning about it is Form 6251 and instructions.
Our free online guide to AMT offers an overview of how this tax works.
