Benefits & ERISA Law

IRS? PTIN Registration System Now Available

By Suzanne Wynn

A few days ago, the IRS released a Special Edition of Retirement New for Employers. It says the new Preparer Tax Identification Number (PTIN) system is now available and taking registrations. The IRS also posted a pretty extensive FAQ on the new PTIN system and who must register.

FAQ 5 in the section on “Other Credentials” partially addresses whether retirement plan professionals must obtain a PTIN. It states:

“5. How are enrolled retirement plan agents and enrolled actuaries affected by the recommendations? (posted 7/22/10)

Enrolled retirement plan agents and enrolled actuaries must obtain a PTIN if they are compensated for preparing, or assisting in the preparation of, all or substantially all of a federal tax return or claim for refund. But they will be exempt from the competency test requirement if they only prepare returns within the limited practice areas of these groups.”

Section 10.3(e)(2) of Circular 230 says that:

“(2) Practice as an enrolled retirement plan agent is limited to representation with respect to issues involving the following programs: Employee Plans Determination Letter program; Employee Plans Compliance Resolution System; and Employee Plans Master and Prototype and Volume Submitter program. In addition, enrolled retirement plan agents are generally permitted to represent taxpayers with respect to IRS forms under the 5300 and 5500 series which are filed by retirement plans and plan sponsors, but not with respect to actuarial forms or schedules.”

I am hoping that the IRS provides more definitive information about whether a PTIN is required for a retirement plan professional who limits their practice to preparing Forms 5300, 5307, 5310 and 5500 before the January 1, 2011 deadline.

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Full post as published by Pension Protection Act Blog on October 06, 2010 (boomark / email).