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Pronto Tax Class Blog

Student Questions About IRS Competency Test

There are a lot of questions that are swirling around about this IRS Competency Test, what it means for the new tax preparer, when it is due, and so forth.

We had an interesting question this morning via email from a recent graduate of Pronto Tax Class wondering if she would have to take more hours of education and take the IRS test before she can do taxes.

The short answer to this is "NO"! You do NOT need to take any more courses or tests except Pronto Tax Class to be eligible to do taxes for pay in 2012.

IRS Logo

BUT, once you are registered as a tax pro, you will need to take continuing education every year to maintain your credential (we offer 20 hour CE at RenewCTEC.com for cheap), and then in addition you must pass the IRS Competency Exam by the end of the year 2013, so December 31st, 2013 would be the due date to pass the exam. The exam will only be available in English and details about the exam contents can be found at the IRS website.

Also remember that, as of April 18, 2012, new tax preparers WILL have to pass the IRS Competency Exam in order to begin their careers. This is all the more reason why if you want to become a tax preparer, best to do it now when you can pass our online tax course and not have to worry about some stressful IRS test!

Excerpted from our email exchange this morning between this recent grad and Pronto Support:

Regarding the ethics hours question, these will be required as the "continuing education" annual requirement to keep your license.  Since you are just now getting your license, you are ready to prepare taxes now with 45 hours fed and 15 state.  You can take our continuing education course at RenewCTEC.com if you want to pick up another 14 hours federal, 4 California, and 2 ethics.  But it is not absolutely necessary to take the ethics hours this first year.

Regarding the IRS Competency Exam, this is not available yet they are still finalizing it.  As shown in the note below, you don't have to take this Competency Test until end of 2013, so I wouldn't worry about it for now.  It will cost around $125 probably and you don't need it to do taxes this tax season.

I realize it's confusing. But bottom line is that you don't need any other courses than the one you took to do taxes this tax season.  In future years, though, IRS and California both require certain hours of continuing education.

Hope this helps...
It's confusing, yes, but this is the important thing: if you want to get paid to do taxes in 2012, you do NOT have to pass any IRS test, you only have to pass Pronto Tax Class.




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