Jack from Ohio

If the donor assigns ANY restrictions to the gift, it CANNOT be deducted. You are correct in your assessment. If the church establishes a "Mission Trip Fund" that is totally directed by the governing body of the church, donations to that fund can be deducted. Again, the donor cannot direct where the funds go. The donor would have to trust that the persons in charge of the fund will do the best thing with the monies. The best way for people to be sure the donation helps a specific individual is to make the gift directly to the individual. This will also show if the donor is more interested in the tax deduction than the gift going to the right person. I run into this all the time with our congregation. (I have been treasurer since Sep. 2011) and when I ask "Which is more important, your gift going to the person you choose, or the tax deduction?" it takes the problem away.

You are correct, Diane. Unless the proceeds of the loan are used on/in/for the rental, the loan is personal.

When the client didn't allow you to represent him, he sealed his fate with the auditor. Were it me, I would not get involved at this point. I hear... "I ain't afraid of the IRS." "This will be simple, I can handle it." If my professionalism was not apparent enough for my client to let me represent them, then the client deserves what they end up with. I guess I am fed up with clients not listening!!!!

It takes 4-6 weeks for an amended return to be processed. I would not expect any updates on this item for 3-5 months at least. Does not change anything as far as you preparing returns.

I am just pointing out the absurdity of the whole process. The IRS will extend again, the "second level" of testing is not even on the event horizon. Up until December 2013, anyone can apply for a PTIN and start preparing returns for pay right away. So much for the testing "weeding out" unqualified people preparing taxes. This has been the IRS mantra from the beginning. I am complying, but still stand by my opinion that the whole registration and testing process for PTIN holders is nothing but a money grab and a giant joke. No confusion here. No mandatory testing to prepare returns until renewal time December 2013. (at this point, subject to change per the IRS administration whims)

You can prepare returns for pay just as soon as you have your PTIN. Even though it is called provisional until you pass the test. 5. If I don't have a PTIN, can I still prepare tax returns for compensation? (revised 6/9/11) No. You must have a PTIN to prepare tax returns for compensation. To obtain your PTIN, submit an application online or using a paper Form W-12 and pay the required fee. If you submit your application online, your PTIN generally will be provided to you immediately after you complete the application process and pay the required fee. If you submit your application using a Form W-12, it may take 4 to 6 weeks for the IRS to process your application and for you to receive your PTIN. I find no reference to passing the test before you are issued a PTIN, or before you can prepare returns for pay. More IRS "hollow" deadlines and purposes.

FOUND IT!! “How can I register for the Exam to get a PTIN, when I need a PTIN to register for the exam??” The IRS issues provisional PTIN to individuals who are NOT attorneys, CPAs, or enrolled agents. The PTINs are provisional because these individuals must still meet testing and/or suitability requirements before a permanent or "active" PTIN can be issued to them. Initially the IRS planned to cease issuing provisional PTINs when the Registered Tax Return Preparer competency test began and to require individuals to pass the test and meet all other requirements before the issuance of a PTIN. At this time the IRS plans to continue issuing provisional PTINs past April 18, 2012 and will determine the future of them by December 31, 2013.

Before you begin your PTIN application, be sure you have the following available: Social Security Number Personal information (name, mailing address, date of birth) Business information (name, mailing address, telephone number) Previous year’s individual tax return (name, address, filing status) 1 Explanations for felony convictions (if any) 2 Explanations for problems with your U.S. individual or business tax obligations (if any) 2 Credit or debit card for the $64.25 PTIN user fee If applicable, your supervisor’s PTIN (view the Notice 2011-6 fact sheet for more information) If applicable, any U.S.-based professional certification information (CPA, attorney, enrolled agent, enrolled retirement plan agent, enrolled actuary, certified acceptance agent, or state license) including certification number, jurisdiction of issuance, and expiration date If you already have a PTIN, you will NOT be asked to enter it in this new application. You may or may not get the same PTIN at the end of the sign-up process. Once you gather all of your information, just follow four easy steps to obtain your PTIN: Create Your Account — First, you must create an account by providing your name, email address and security question information. The system will then email your temporary password, which you will change when you go back to enter your information in the PTIN application. Apply for Your PTIN — You will complete the online application by providing personal information, information about your previous year’s tax return, professional credentials, and more as shown above. Pay Your Fee — The application will transfer you to our partner bank where you will make your payment of $64.25 by credit card or direct debit. Get Your PTIN — After the bank confirms your payment, your PTIN is provided online. After you obtain your PTIN, you will receive a welcome letter and information about next steps including testing and continuing education requirements (if applicable). Note: All PTIN correspondence is delivered through secure online messaging in your PTIN account. Use the most up-to-date email address when obtaining your PTIN to ensure that you receive our messages. ****************************************************************************************************************************************************** IRS Test Requirements for Becoming a Paid Tax Professional Certified Public Accountants and Attorneys may prepare federal individual income tax returns and represent clients before the IRS without passing an IRS test. (But they must obtain a Preparer Tax Identification Number and renew it annually.) Other individuals who want to prepare federal individual income tax returns (Form 1040 series) for compensation and/or represent clients before the IRS must pass one of two IRS tests and become either an Enrolled Agent or Registered Tax Return Preparer: ********************************************************************************************************************************************************** 5. If I don't have a PTIN, can I still prepare tax returns for compensation? (revised 6/9/11) No. You must have a PTIN to prepare tax returns for compensation. To obtain your PTIN, submit an application online or using a paper Form W-12 and pay the required fee. If you submit your application online, your PTIN generally will be provided to you immediately after you complete the application process and pay the required fee. If you submit your application using a Form W-12, it may take 4 to 6 weeks for the IRS to process your application and for you to receive your PTIN. ********************************************************************************************************************************************** Please show me where it shows that the test must be passed BEFORE the PTIN is issued? I know I saw the notice from the IRS deciding to remove the requirement of testing before obtaining a PTIN.

Anyone can apply for a PTIN and start preparing taxes for pay. The IRS has rescinded the requirement to pass the test before getting a PTIN. The whole registration and testing for PTIN is just a money grab from those of us who have been complying for years. I am complying, but the only benefit is the ability to put the letters after my name. I predict that the Dec. 31, 2013 deadline will be moved forward as well. I also predict that the IRS will soften or remove the requirement to document (no mention of how to do that so far...) CPE credits before renewal of PTIN. The only testing and registration requirements I see with any tangible benefits is becoming and E.A.

It is mandatory, and it gives you nothing except the ability to say that you have passed the test. No additional privileges with the IRS. A certification with no benefits!!

Congrats to all who are passing the test! Receive my "Official" certificate in the mail this morning. 14 days. Am I allowed to feel "special" now?

Client was sole proprietor for years. Established a SEP for himself. 2011 incorporated and obtained S-corp status. 4 members of S-corp. Question: Can the client continue to fund the SEP he created as a sole prop?

I would also add that if you follow my recommendations, you should have no need to pay for a prep course. About 40 of the questions required less than a second of thought, very basic.

Finished at 2:20 and PASSED!!! :D :D Advice as follows: Read Circular 230 slowly and carefully. Read Pub 17 slowly and carefully. Do NOT overthink the 20-25 AMBIGUOUS questions! If you have 5 or more years doing 50 or more personal tax returns, the test will be easily passable. The questions are not worded nearly as precisely and carefully as the E.A. exam questions. Now I only have the one E.A. exam to take. I took this exam so I can use both titles when I advertise and on my business cards. The public seems to understand the new RTRP designation, but are still confused by E.A.

Going today at 1:00 PM

I will enjoy every moment of chastening from you!! Makes the punishment more tolerable when an intelligent, thinking and pleasant woman is dishing it out.

I would be careful due to the recent rulings regarding "each gambling trip."

As I understand the program, they can "disallow" the RTRP arbitrarily anyway, just like your PTIN or EFIN. The whole program (although I am complying) in my opinion is just a money grab with a paper covering of an excuse that it is to reduce fraudulent, inaccurate or intentionally wrong tax returns.

No. Losses are only deductible up to the amount of your winnings. Winnings = $0 then deductible loss = $0

Will the penalty for talking about the "nature and variety of the questions" be the same as preparing returns without signing them, or not having enough CPE credits in October?? When was the last time anyone was prosecuted for these things? Just sayin....

Using a PO BOX would have been better....

My advice on this situation still stands. You can tell your client if he wants different answers to contact his Congressman. There is no known way that a taxpayer or a tax preparer can break through the IRS wall. BTW, I believe Jainen is RIGHT ON about the current situation at the IRS. Cutting budget and staff, and expecting them to do more.... Our government at it's finest!! http://www.irs.gov/newsroom/article/0,,id=257554,00.html?portlet=107 Here is a recap.... Let me know how that works.... Our experience here (over a hundred clients) is that it makes no difference. Comparing those where someone calls vs. those where no calls are made. This is the same organization that is going to police our CPE credits for our PTIN registration and look for preparers not signing returns all at the same time???? There is a song.... "Do YOu Believe In Magic?"

The truth is undeniable. Our government and the people in charge are definitely moving us toward a Marxist State. As long as the majority of voting Americans remain apathetic and ignorant about things outside their own back yard, it IS the way we are and will be going. If you can dispute the truth without name calling, I will listen. Telling the truth does NOT make a person a Marxist. In a FREE America, everyone has the right to have and express their opinion. When you resort to namecalling because they believe differently, it speaks loudly about your inability to allow others to have that freedom. This does not shed a good light on your ability to contemplate or consider things that are not like you or what you believe. Closed minds, apathy and ignorance will be the death of the FREE America we have come to take for granted. What name do you have for me now? I am anxious to see!!!

How much unbillable time have you spent? After making this call for ten of my clients, and getting the same results, I have stopped making the calls. I now tell my clients with this situation the truth.... "It is in the hands of the IRS, and there is nothing you can do that will make things work any faster than THEY choose to." I threw out the refund schedule on Feb. 1. "Do You Believe In Magic?"

Let me know how that works.... Our experience here (over a hundred clients) is that it makes no difference. Comparing those where someone calls vs. those where no calls are made. This is the same organization that is going to police our CPE credits for our PTIN registration and look for preparers not signing returns all at the same time???? There is a song.... "Do YOu Believe In Magic?"