AGENDA Annual Filing Season Program (AFSP) Overview Annual Federal Tax Refresher Course (AFTR) Overview Maryland Registration Requirements and

Transcription

1 MRSTAX ENTERPRISE

2 AGENDA Annual Filing Season Program (AFSP) Overview Annual Federal Tax Refresher Course (AFTR) Overview Maryland Registration Requirements and Examination Overview

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4 AFSP Voluntary Continuing Education Program for tax preparers Voluntary complete the annual refresher course and continuing education Preparer that complete AFSP will be listed on a public database The directory will include attorneys, CPA s, EA s, ERPA s, Enrolled actuaries, and individuals who have received an Annual Filing Season Program Record of Completion

5 Why Participate in the IRS AFSP Limited representation rights Included in the directory of Federal Tax Return Preparer Differentiates yourself and your tax business in the marketplace

6 Benefits of getting an AFSP- Record of Completion - In-depth look AFSP- Record of completion differentiates you in the marketplace Limited Representation Rights

7 Who is an Eligible Return Preparer for the IRS AFSP Geared towards unenrolled tax returns preparers AFSP is not intended for credentialed preparers such as EA s, ERPA s, Attorneys, CPA s, or Enrolled actuaries

8 How to earn an AFSP- Record of Completion 6 credit hours Annual Federal Tax Refresher course (AFTR) covering tax law updates and a review of common tax return issues 10 hours of Federal tax law topics 2 hours of Ethics

9 AFSP 2015 Filing Season ONLY! 6 hour AFTR course 3 hours of Federal tax law topics 2 hours of Ethics

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11 CE Courses already taken in 2014 count towards AFSP All courses already taken count toward your requirement No course taken before July 1, 2014, will count as the Annual Federal Tax Refresher course. Only courses designated with the name 2015 Annual Federal Tax Refresher will count towards the AFTR 6- hour requirement.

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13 How to check your CE credits Log into your IRS PTIN Account Go to Click on the for Tax Pros Tab Click on the Renew or Sign-up Now Button Enter your user id and password Under the Additional Activities Select, View My Continuing Education Credits Select the Year 2014 Your total credits earned and category will be displayed

14 Need More Detail on your CE Click the expand link adjacent to the credits You will now see the following The Provider of the Course The Program Title The Program Number The Program Completion Date Credits Earned

15 CE SEQUENCE EXAMPLES TATHT-E I TATHT-T I

16 CE PROVIDER PROGRAM SEQUENCE XXXXX -X -XXXXX -XX -X Provider Number Alphanumeric remains constant year to year Category: E= Ethics T= Federal Tax U= Federal Tax Update Q= Qualified Retirement Plan Matters P= SEE Test Prep A= Annual Federal Tax Refresher Program Number Will be a different number for each program the provider requests approval for Calendar Year of approval e.g. 12 would be for 2012 Program type S- Self Study I= In person O= Online Ex: 97VVC E I

17 YES!! (AFTR) discussed later in this presentation

18 Who is Exempt from AFTR Course Individuals who passed the RTRP test OR and CA preparers who are current with testing requirements within their state Individual who have passed Part of the Special Enrollment Exam (SEE) within the past two years VITA volunteers

19 Who is exempted Cont d Other Accredited tax-focused Credential-holders The Accreditation Council of Accountancy, Taxation's Accredited Business Accountant/Advisor Accredited Tax Preparer (ATP) Credentialed Preparers (attorneys, CPAs, Eas, ERPAs)

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21 Exempt Preparers can obtain AFSP Record of Completion by Completing 15 hours of IRS- approved CE Obtaining or Renewing a valid PTIN

22 15 hours of IRS-Approved CE 3 hours of tax law updates 10 hours of federal tax law topics 2 hours of ethics

23 How to get Record of Completion from the IRS Certificate will be provided during the PTIN Renewal Process Receive an from with instructions on how to complete the application process and receive their certificates in their online secure mailbox

24 Is AFSP-Record of Completion a one time program? This is an annual program. Each Record of Completion will indicate the filing season for which it is valid. Tax preparers will be expected to complete the program each year to obtain a valid Record of Completion for the next filing season

25 Circular 230 To obtain your Record of Completion, unenrolled preparers must agree to adhere to the practice requirements for tax practitioners outlined in Subpart B and section of Treasury Department Circular No. 230

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27 About the Test for (AFTR) The 6-hour AFTR course is considered complete when a tax preparer passes the 100-question exam offered as part of the course. IRS-approved CE providers who offer the Annual Filing Season Program will administer the exam online. All courses and exams must follow an outline and parameters set forth by the IRS.

28 About the AFTP Test Successful completion of the 6hr AFTR course includes Passing a 100 question exam May be multiple choice or true/false Passing score of 70% 2 attempts with identical test 3 hour limit Your CE provider will report your hours to IRS

29 Cont d about AFTR Test Preparers are able to take the AFTR course as early as June 1 each year (July 1 for 2014). The course must be completed no later than December 31 each year in order to earn the Record of Completion for the next filing season. Records of Completion will be issued in accordance with the PTIN renewal process.

30 What does the AFTR Course Cover The AFTR course is a 6-hour course that covers topics divided into three domains. New and updated tax laws General federal tax topics Ethics, practice and procedures IRS will update the course annually

31 Tax Return Public Directory Maintained by the IRS Expected to be live as of January 2015 Searchable Database

32 MRSTAX Solutions for AFSP AFSP Bundle $99.00 Includes the following online courses:6-hours of IRS Annual Federal Tax Refresher 2-hours of Ethics 3-hours of Federal Tax Law Topics All of the education you need to get your AFSP Record of Completion this year. AFTR $59.00 Includes the following online course:6-hours of IRS Annual Federal Tax Refresher

33 For AFSP and AFTR

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35 Who is Required to Register? An individual is required to be registered by the board before providing individual tax preparation services in the State.

36 Requirements Must apply for or be granted a Preparer Tax Identification Number (PTIN) from the Internal Revenue Service. You must be at least 18 years old You must hold a valid High School Diploma or GED.

37 Registration Fee The registration fee for the initial two year registration and subsequent bi-annual renewal is $100. The expiration date will be two years from the date of issuance.

38 Exemptions from Maryland Registration The following individuals are exempted by law from the requirement to hold a state individual tax preparers registration: A current, active CPA registered by Maryland or any other State, An individual in good standing and admitted to practice law in the State or in another state; an individual employed by a local, state, or federal governmental agency but only in performance of official duties;

39 Exemptions from Maryland Registration Cont d An individual enrolled to practice before the Internal Revenue Service who is governed under circular 230 (exemption applies only to Enrolled Agents of the IRS); An individual serving as an employee of or assistant to an individual tax preparer or an individual exempted under this subsection in the performance of official duties for the individual tax preparer or the individual exempted

40 Examination The new Maryland Examination will be available on October 1, The deadline for passing the Maryland Examination is December 31, 2015 The cost of the Maryland Examination is $65 Those tax preparers who have taken and passed the RTRP exam given by the IRS do not have to take the Maryland exam

41 Tax preparers may apply for an examination waiver

42 Waiver In order to qualify for the waiver of the Maryland examination, the applicant must: Have 15 consecutive years of individual tax preparation experience, and must have completed an average of 50 individual tax returns per year, but no fewer than 25 individual tax returns per year. Have completed 8 hours of annual continuing education.

43 Waiver (continued) Be in good standing with the IRS, DLLR, the Office of the Comptroller, and the Office of the Attorney General. Provide proof of current federal PTIN registration, such as your welcome letter for the current calendar year. Document the required experience through employer certification, client letters, or certification from government entities.

44 Waiver (continued) The applicant must certify, under penalty of perjury, that he or she meets the above requirements and provide the required supporting documentation. The Board may, at its discretion, ask the applicant to verify the information with additional supporting documentation. Any individual applying for the examination waiver shall please print out and complete the application for waiver form and return it by U.S. Mail to: Douglas Blackstone, Executive Director Maryland Board of Individual Tax Preparers 500 North Calvert Street Third Floor Baltimore, MD 21202

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46 Maryland Individual Tax Preparer Examination 130 scored questions 100 Federal, 25 State, 5 Ethics Passing Score: 91 (70%) 180 Minutes to complete this examination

47 FEDERAL Questions 1. Filing a Tax Return (15 questions) 2. Income (20 questions) 3. Assets (5 questions) 4. Adjustments (10 questions) 5. Deductions (15 questions) 6. Tax computation (5 questions) 7. Credits (15 questions) 8. Other Taxes Due (5 questions) 9. Payments (10 questions)

48 Maryland State Individual Tax Preparation A. Maryland State Residency B. Additions C. Subtractions D. Deductions E. Exemptions F. Calculation of Maryland tax

49 Maryland State Individual Tax Preparation (continued) G. Maryland State credits H. Calculation of local tax I. Local credits J. Contributions K. Payments

50 ETHICS Ethics and Professional Conduct (5 questions)

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53 MRSTAX Solutions for MD Exam Study Over 500 study questions referenced to the key IRS Publication or Maryland Code Practice Exam Mode to help you develop your test taking skills Approved for 10 hours of IRS Approve CE Federal Taxation Credit Study and Practice Exam modes lets you apply teaching to practice questions prior to your taking credit exam Study online from PC, Mac, ipad, or Android 4.0 or higher Tablet devices

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55 For MD Registration and Examination