FAQ

Our Goal Is To Help You Establish & Profit From Your Tax Preparation Business FAST. Here Are A Few Things You Should Know.

Tax Preparer Requirements:

Do I have to take a test or exam to be a tax preparer?

No. Shortly before the start of the 2013 tax filing season, the IRS lost their authority to require tax preparers to take and pass the test they were calling the Registered Return Preparer Exam. The IRS is appealing this legal restriction and Federal Direct will keep you posted on any changes.

Do I have a required Continuing Education Requirement?

No. As a tax preparer, you do not have a required continuing education requirement. While many tax preparers choose to take continuing education for their own betterment and to keep up on changing tax laws, it is not a requirement for being a tax preparer. Enrolled Agents and CPAs DO have an annual continuing education requirement.

Do different states have different requirements for being a tax preparer?

Yes. California, Oregon, and New York all have individual state level requirements for tax preparers. If you reside and are preparing tax returns in these states please consult a Federal Direct account representative for the requirements for your state.

Do I have to get a PTIN (preparer’s tax identification number)?

Yes. All tax return preparers who are compensated for preparing or assisting in the preparation of any federal tax returns must possess a valid PTIN.

What is the fee for obtaining a PTIN?

$64.25 is the price to initially obtain a PTIN. PTINs must be renewed annually for $63.00.

Is there an age requirement to obtain a PTIN?

Yes. You must be 18 years of age to obtain a PTIN.

Where can I get more information on getting an IRS issued PTIN?

You can visit the IRS preparers PTIN website at: www.irs.gov/ptin

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