5500 Preparer’s Manual for 2012 Plan Years The arch ability in the acreage of Anatomy 5500 preparation, 5500 Preparer’s Manual will advice you handle the appropriate anniversary Anatomy 5500 filings for both alimony allowances and abundance account plans.
Individuals who are paid to adapt Anatomy 5500s do not accept to access a preparer tax identification cardinal (PTIN), according to advice afresh issued by the IRS. Beginning afterwards December 31, 2010, the IRS requires all tax acknowledgment preparers who are compensated for preparing, or acceptable in the alertness of, all or essentially all of a U.S. federal tax acknowledgment or affirmation for acquittance to accept acquired a PTIN. The IRS is now accouterment advice on the affirmation to access a PTIN and on the forms that authorize as tax allotment or claims for refunds for purposes of the PTIN rules. The IRS additionally is accommodation acting rules for assertive PTIN holders during the accomplishing appearance of the new PTIN rules.
In adjustment to advance blank of tax acknowledgment preparers, the IRS has, in the aftermost few months, issued regulations and added advice acclamation tax acknowledgment preparer PTIN requirements, user fees to administer for or renew a PTIN, adequacy testing and continuing apprenticeship requirements, and the addendum of the belief rules beneath Circular 230. The American Society of Alimony Professionals & Actuaries (ASPPA) asked the IRS to analyze and absolute the new paid tax acknowledgment preparer allotment action for Anatomy 5500 preparation, acquainted that Anatomy 5500 is primarily an advice acknowledgment and that the new allotment action would acceptable advance to college retirement plan administering costs and lower allowances for plan participants (see CCH Alimony Plan Guide Newsletter, Report No. 1857, October 4, 2010).
Forms that are not tax returns
The IRS may specify which forms, schedules, and added forms authorize as tax allotment or claims for acquittance for purposes of the PTIN requirements. The IRS states that all tax returns, claims for refund, or added tax forms submitted to the IRS are advised tax allotment or claims for refund, unless contrarily provided by the IRS. Thus, an alone charge access a PTIN to adapt for advantage all or essentially all of any form, except for those forms accurately articular by the IRS as not accountable to PTIN requirements. The IRS has listed abounding forms that are not accountable to the PTIN requirements. These forms accommodate Anatomy 5500, Anatomy 5300, Anatomy 5307, Anatomy 5310, Anatomy 8717, the Anatomy 1099 series, the W-2 series, and Anatomy 2848. The IRS addendum that it may adapt this account in the future.
Individuals who access a PTIN
For individuals who access a PTIN, the IRS confirms that tax acknowledgment preparers who access a PTIN or a conditional PTIN and pay a user fee afterwards September 28, 2010 accept activated for and accustomed a PTIN in the address assigned by the IRS for purposes of Code Sec. 6109 regulations.
Beginning afterwards December 31, 2010, a tax acknowledgment preparer charge be an attorney, certified accessible accountant (CPA), enrolled agent, or registered tax acknowledgment preparer to access a PTIN. However, the IRS may accomplish exceptions. The IRS has absitively to acquiesce assertive individuals who are not attorneys, CPAs, enrolled agents, or registered tax acknowledgment preparers to access a PTIN and prepare, or abetment in the alertness of, tax allotment beneath specific circumstances.
Supervised tax acknowledgment preparers. Until added advice is issued, the IRS will acquiesce any alone 18 years or earlier to pay a user fee and access a PTIN that permits the alone to prepare, or abetment in the alertness of, all or essentially all of a tax acknowledgment or affirmation for acquittance for advantage if: (1) the alone is supervised by an attorney, CPA, enrolled agent, enrolled retirement plan agent, or enrolled actuary; (2) the authoritative attorney, CPA, enrolled agent, enrolled retirement plan agent, or enrolled actuary signs the tax allotment or claims for acquittance able by the individual; (3) the alone is active at the law firm, certified accessible accounting firm, or added accustomed close of the tax acknowledgment preparer who signs the tax acknowledgment or affirmation for refund; and (4) the alone passes the appropriate tax acquiescence analysis and adequacy analysis (when available).
These individuals will not be accountable to a adequacy assay or continuing apprenticeship requirements. The IRS states that these individuals may not assurance any tax acknowledgment that they advice prepare, represent taxpayers afore the IRS in any capacity, or represent themselves as registered tax acknowledgment preparers or Circular 230 practitioners.
Individuals who adapt tax retuns not covered in adequacy exam. The IRS addendum that tax acknowledgment preparers will be appropriate to canyon a adequacy test. The IRS expects that the adequacy analysis will initially awning alone alone assets tax allotment (the Anatomy 1040 series). Although the IRS anticipates that the types of forms and claims for refunds covered by the adequacy analysis may aggrandize in the future, the IRS recognizes that some compensated tax acknowledgment preparers do not adapt Anatomy 1040. Until added advice is provided, the IRS has bent that these individuals should not be appropriate to canyon a adequacy analysis accoutrement forms not able by the individuals in adjustment to access a PTIN. In addition, these individuals are not currently appropriate to amuse the aforementioned continuing apprenticeship requirements that a registered tax acknowledgment preparer charge complete to renew their PTIN. However, the IRS addendum that in the approaching the IRS may crave these individuals to complete continuing apprenticeship to renew their PTIN.
These individuals may assurance the tax allotment or claims for acquittance that they adapt for advantage as the paid preparer. They may additionally represent taxpayers afore the IRS during an assay if they active the tax acknowledgment or affirmation for acquittance for the taxable year beneath examination. However, the IRS states that they may not represent themselves as a registered tax acknowledgment preparer or a Circular 230 practitioner. The IRS explains that enrolled retirement plan agents and enrolled actuaries who access a PTIN beneath this barring may abide to convenance and represent as provided in Circular 230.
As acclaimed above, an alone may be appointed as a registered tax acknowledgment preparer if the alone auspiciously completes a adequacy examination. However, the IRS does not apprehend to action the adequacy analysis afore mid 2011. Until the adequacy analysis is available, the IRS, as an acting rule, will acquiesce individuals who are not attorneys, CPAs, or enrolled agents to access a conditional PTIN afore the date the analysis is aboriginal offered. The IRS will about not affair conditional PTINs in accordance with this acting aphorism afterwards the date the analysis is aboriginal offered. Until December 31, 2013, a conditional PTIN may be renewed aloft appliance and acquittal of the applicative user fee, alike if the alone with the conditional PTIN is not an attorney, CPA, enrolled agent, or registered tax acknowledgment preparer. Afterwards December 31, 2013, conditional PTINs will about not be renewed.
Source: IRS Notice 2011-6, I.R.B. 2011-3, January 17, 2011.
For added advice on this and accompanying topics, argue the CCH Alimony Plan Guide, CCH Employee Allowances Management, and Spencer’s Allowances Reports.
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