Registered Tax Return Preparer Test(RTRP) Exam Study Guide
A Registered Tax Return Preparer is an individual with an IRS preparer Tax Identification Number (PTIN) and authorized to prepare federal tax returns. The Internal Revenue Service is mandated in implementing a program to increase the quality of the tax preparation industry. All tax preparers are therefore required to register with IRS.
Tax Preparers who prepare Form 1040 series returns are required to take a test. Also, they are required to undergo a tax compliance check and complete 15 hours of continuing education every year. Registered Tax Return Prepares are issued with either provisional or active status. Those given Active status are enrolled agents, attorneys, and certified public accountants since they are not required to take the competency test. The IRS currently does not offer the test for international Tax Return Preparations.
Certified public accountants
Certified Public Accountants are licensed by the states and are required to pass the Uniform CPA Exam. Each state provides additional tax preparation requirements. CPAs prepare tax returns and routinely represents their clients before the IRS
Tax Attorneys
The tax attorneys MUST be holders of law degrees, pass the bar exam, and be registered by a state court and or state bar. Registered tax attorneys can prepare tax returns as well as prepare a legal defense for their client involved in a tax-related case.
Enrolled Agents
Enrolled Agents (EAs) are registered tax return prepares and are required to take and pass a suitable check, take extensive tests covering business and individual taxes, and representation matters. They are also required to go through 72 hours of additional education every three years.
IRS Tax Return Preparer RTRP Exam overview
Individuals who wish to become IRS Enrolled Agents are required to take and pass a special enrollment Exam.
The exam is a three-part comprehensive examination.
The three parts are mainly:
- Individuals
- Taxation and advice- 14 questions
- Specialized returns for individuals- 12 questions
- Preliminary Work with Taxpayer Data- 17 questions
- Income and Assets- 21 questions Deductions and Credits- 21 questions
- Business
- Business Entities- 28 questions
- Specialized Returns and Taxpayers- 18 questions
- Business Financial Information- 39 questions
- Representation Practices and Procedures
- Practices and Procedures-25 questions
- Specific Types of Representation- 19 questions
- Representation before the IRS- 24 questions
- Completion of the Filing Process- 17 questions
Tax preparer RTRP exam information, fees and type of exam
IRS provides directions that candidates can effectively utilize. The prospective enrolled agents are required to pass all three parts exams in no specific order within two years and apply for enrolment. There’s no limit on the time the test can be taken. The fee for registering for the Tax Return Preparer competency test is $116 and takes two hours thirty minutes and covers the Tax Year 2010 Form 1040 series and its related tax schedule. Questions asked are 120 multiple choice questions and in the format “true” or ‘false.” The test is available in English only and administered in a computer-based testing format at Prometric Inc. test centers.
IRS encourages candidates to download publications, candidate bulletins, and test specifications from their website.
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