IRS Non-Credentialed Return Preparer (NCRP) CPE Requirements

How to reach the regulator directly.

IRS Registered Tax Return Preparer (RTRP)
1111 Constitution Avenue, NW
Washington, DC 20224

Tel: (877) 613-3686

Email: epp@irs.gov

The regulator's own published rules and related resources.

Regulations Governing Practice before the Internal Revenue Service (Circular 230) - June 14, 2014

The total continuing education hours required.

Fifteen (15) hours during each registration year.

Provisional PTIN Holders: The IRS has decided that these individuals must satisfy the same minimum continuing education requirements that registered tax return preparers are required to complete. (Refer to the "Enforcement" section below for more information on Provisional PTIN Preparers.)

The detailed rules behind that total -- category minimums, ethics, and other conditions.

The fifteen (15) hours of continuing education credit must include:

• Two (2) hours of ethics or professional conduct;
• Three (3) hours of Federal tax law updates; and
• Ten (10) hours of Federal tax law topics.

Only credits obtained through courses offered by IRS approved continuing education providers will count towards the IRS' continuing education requirement. If a course offered by an IRS approved continuing education provider also meets a state's continuing education requirements, the IRS will not prohibit a tax return preparer from using the credits obtained from the course to satisfy both requirements, but the tax return preparer should consult with the relevant state's licensing authority to determine whether the state has any restrictions.

Any CE earned before obtaining a PTIN will not count toward the CE requirements.

NOTE: September 13, 2012: CeriFi has confirmed with the IRS that if a PTIN holder obtains excess hours in federal tax law updates, that such excess hours can be counted toward the federal tax law requirement (i.e., as long as the PTIN holder has the three hours of tax updates, the rest can be counted toward the ten hour federal tax law requirement).Excess credits earned in the ethics category cannot be applied to any other category.

POSTED: December 6, 2011: IRS Website FAQ Page: May a tax return preparer obtain continuing education credit for completing a Registered Tax Return Preparer competency examination preparation program? A tax return preparer can obtain continuing education credit for completing an approved Registered Tax Return Preparer competency examination preparation program until December 31, 2013. A maximum of ten hours will be allowed and it will be qualified as a program under other federal tax law. (Enrolled Agents and Enrolled Retirement Plan Agents will not receive continuing education credit for completing any test preparation programs.)

How the reporting cycle is structured.

The registration year is calendar-year-based (i.e., January 1 - December 31).

There is no continuing education requirement for 2011. The continuing education requirement will begin in 2012. Individuals who are Registered Tax Return Preparers, and those who have provisional PTINs but have until December 31, 2013 to pass the test, will need to obtain 15 hours of continuing education courses from IRS approved providers during calendar year 2012 and each subsequent year.

When a reporting cycle begins.

January 1.

How completed credits are reported to the regulator.

Tax Preparers

The IRS has decided that all PTINs (including provisional PTINs) must be renewed on a calendar year basis using the IRS's online PTIN application available at www.irs.gov or paper application, Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application.

• Tax return preparers will not be able to renew his/her certificate for the following year unless the CE requirement is met in the current year.
• Tax return preparers who obtain a provisional PTIN before October 1, 2011 are not required to complete continuing education requirements during 2011.
• Tax return preparers will be able to view the continuing education in TPPS. In the event that a tax return preparer does not have the required continuing education, he/she will not be able to renew.

Recordkeeping Requirements: Each individual applying for renewal must retain for a period of four years following the date of renewal the information required with regard to qualifying continuing education credit hours. Such information includes:

• The name of the sponsoring organization;
• The location of the program;
• The title of the program, qualified program number, and description of its content;
• Written outlines, course syllibi, textbook, and/or electronic materials provided or required for the course;
• The dates attended;
• The credit hours claimed;
• The name(s) of the instructor(s), discussion leader(s), or speaker(s), if appropriate; and
• The certificate of completion and/or signed statement of the hours of attendance obtained from the continuing education provider.

To receive continuing education credit for service completed as an instructor, discussion leader, or speaker, the following information must be maintained for a period of four years following the date of renewal:

1. The name of the sponsoring organization;
2. The location of the program;
3. The title of the program and copy of its content;
4. The dates of the program; and
5. The credit hours claimed.

The renewal or reporting deadline.

The IRS will require registered tax return preparers (and provisional PTIN holders) to satisfy continuing education requirements beginning in 2012. Therefore, registered tax return preparers must complete continuing education requirements between January 1st and December 31st of each year beginning in 2012.

POSTED: January 1, 2013: IRS Website FAQ Page: What should I do if I didn't complete my CE requirement for 2012? You must make up 2012 CE by taking the outstanding credits in 2013. 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.

Individuals who hold valid PTINs must renew their PTIN and pay the required fee after October 15th and before January 1st each year. PTINs renewed during this period will be valid from January 1st through December 31st of the following calendar year. PTINs obtained or renewed during a calendar year will expire on December 31st of that year.

Individuals obtaining a new PTIN after October 15th will have the option of receiving a PTIN for the current calendar year or the following calendar year.

Individuals who choose to receive a PTIN for the current calendar year will be required to renew their PTIN before January 1st to prepare returns during the following calendar year. Individuals who choose to receive a PTIN for the following calendar year may not prepare tax returns for compensation during the remainder of the current calendar year. Instead, the PTINs issued to these individuals will be valid for the following calendar year.

To assist with the transition to a calendar year renewal period, the IRS has determined that PTINs issued after September 27, 2010 and before October 16, 2011 will expire on December 31, 2011.

→ Get monthly reminders before this deadline

What happens if the requirement is not met.

Provisional PTIN Holders

The IRS will continue to issue provisional PTINs until at least April 18, 2012, to allow individuals sufficient time to prepare for the competency examination and to prevent disruption of the 2012 filing season.

Individuals who obtain a provisional PTIN may retain the provisional PTIN until December 31, 2013. Individuals who have a provisional PTIN during this period, however, must annually renew and continually maintain the provisional PTIN to retain the ability to prepare tax returns or claims for refund for compensation until December 31, 2013. If an individual allows the provisional PTIN to expire, the individual must become a registered tax return preparer (or other authorized individual under § 1.6109-2) to be eligible to obtain a PTIN and to prepare all or substantially all of a tax return or claim for refund for compensation.

Individuals who obtain a provisional PTIN in accordance with IRS Notices 2011-6 or 2011-80 are not registered tax return preparers and may not represent that they are registered tax return preparers or have passed the competency examination.

Provisional PTIN holders who do not satisfy the minimum continuing education requirements will not be allowed to renew their provisional PTIN. Individuals whose provisional PTINs are not renewed will be required to pass the registered tax return preparer competency examination or otherwise become eligible to obtain a PTIN before preparing all or substantially all of a tax return or claim for refund for compensation.

Failure to Comply

Compliance by an individual with the requirements of this part is determined by the Internal Revenue Service. The Internal Revenue Service will provide notice to any individual who fails to meet the continuing education and fee requirements of eligibility for renewal. The notice will state the basis for the determination of noncompliance and will provide the individual an opportunity to furnish the requested information in writing relating to the matter within 60 days of the date of the notice. Such information will be considered in making a final determination as to eligibility for renewal. The individual must be informed of the reason(s) for any denial of a renewal. The individual may, within 30 days after receipt of the notice of denial of renewal, file a written protest of the denial as prescribed by the Internal Revenue Service in forms, instructions, or other appropriate guidance.

The continuing education records of a registered tax return preparer may be reviewed to determine compliance with the requirements and standards for renewal. As part of this review, the registered tax return preparer may be required to provide the Internal Revenue Service with copies of any continuing education records required to be maintained under this part. If the registered tax return preparer fails to comply with this requirement, any continuing education hours claimed may be disallowed.

An individual who has not filed a timely application for renewal, who has not made a timely response to the notice of noncompliance with the renewal requirements, or who has not satisfied the requirements of eligibility for renewal will be placed on a roster of inactive enrolled individuals or inactive registered individuals. During this time, the individual will be ineligible to practice before the Internal Revenue Service.

Reduced or prorated requirements for a first renewal.

Continuing education requirements for individuals who initially become a registered tax return preparer after January 31st will be prorated for the initial registration year. These individuals will be required to complete one hour of continuing education credit regarding federal tax law updates or federal tax law topics for each month or portion of a month that the individual is a registered tax return preparer.

In addition, these individuals will be required to complete two hours of ethics credits regardless of when the individual becomes a registered tax return preparer.

For example, an individual who initially becomes a registered tax return preparer on April 20th is required to complete two hours of ethics credits plus 9 hours of credits regarding federal tax law or federal tax law updates.

Except in the case of a waiver, continuing education requirements will not be prorated after the initial application year.

Who may be excused from all or part of this requirement.

The continuing education requirements for Registered Tax Return Preparers do not apply to:

• attorneys,
• certified public accountants, and
• enrolled individuals, certain supervised preparers, and individuals who do not prepare Form 1040 series returns.

Waivers

Waiver from the continuing education requirements for a given period may be granted for the following reasons:

1. Health, which prevented compliance with the continuing education requirements;
2. Extended active military duty;
3. Absence from the United States for an extended period of time due to employment or other reasons, provided the individual does not practice before the Internal Revenue Service during such absence; and
4. Other compelling reasons, which will be considered on a case-by-case basis.

A request for waiver must be accompanied by appropriate documentation. The individual is required to furnish any additional documentation or explanation deemed necessary. Examples of appropriate documentation could be a medical certificate or military orders.

A request for waiver must be filed no later than the last day of the renewal application period. Individuals who do not timely renew their PTIN before December 31st ordinarily will not qualify for a waiver and must complete all of the continuing education hours required.

If a request for waiver is not approved, the individual will be placed in inactive status. The individual will be notified that the waiver was not approved and that the individual has been placed on a roster of inactive registered tax return preparers.

If the request for waiver is not approved, the individual may file a protest as prescribed by the Internal Revenue Service in forms, instructions, or other appropriate guidance.

If a request for waiver is approved, the individual will be notified and issued a card or certificate evidencing renewal.

Those who are granted waivers are required to file timely applications for renewal of enrollment or registration.

Inactive Status

Individuals placed in inactive status and individuals ineligible to practice before the Internal Revenue Service may not state or imply that they are eligible to practice before the Internal Revenue Service, or use the term registered tax return preparer.

An individual placed in inactive status may be reinstated to an active status by filing an application for renewal and providing evidence of the completion of all required continuing education hours for the registration year. Continuing education credit under this paragraph may not be used to satisfy the requirements of the registration year in which the individual has been placed back on the active roster.

An individual placed in inactive status must file an application for renewal and satisfy the requirements for renewal as set forth in this section within three years of being placed in inactive status. Otherwise, the name of such individual will be removed from the inactive status roster and the individual's status as a registered tax return preparer will terminate. Future eligibility for active status must then be reestablished by the individual as provided in this section.

Inactive status is not available to an individual who is the subject of a pending disciplinary matter before the Internal Revenue Service.

Inactive Retirement Status

An individual who no longer practices before the Internal Revenue Service may request to be placed in an inactive retirement status at any time and such individual will be placed in an inactive retirement status. The individual will be ineligible to practice before the Internal Revenue Service. An individual who is placed in an inactive retirement status may be reinstated to an active status by filing an application for renewal and providing evidence of the completion of the required continuing education hours for the enrollment cycle or registration year. Inactive retirement status is not available to an individual who is ineligible to practice before the Internal Revenue Service or an individual who is the subject of a pending disciplinary matter under this part.

Renewal While Under Suspension or Disbarment

An individual who is ineligible to practice before the Internal Revenue Service by virtue of disciplinary action under this part is required to conform to the requirements for renewal of enrollment or registration before the individual's eligibility is restored.

Whether unused credits can apply to the next period.

Not permitted.

→ CE Tracking calculates carryover for you