On Thursday, the IRS released guidance on the implementation of new regulations governing tax return preparers (Notice 2011-6), and provided an exception to its return preparer regulation plan for non-signing preparers supervised by a CPA, attorney, enrolled agent or other Circular 230 practitioner. The notice also provides an exception for individuals who prepare returns that are not covered by the IRS’ competency exams.

In January 2010, the IRS announced that it was recommending increased oversight of tax return preparers and since then has been issuing rules and guidance implementing that increased oversight. In September, it issued final regulations requiring paid tax return preparers to obtain and use a preparer tax identification number (PTIN) starting with returns prepared after Dec. 31, 2010 (TD 9501). It also issued regulations establishing a user fee to apply for and renew a PTIN (TD 9503). It has also proposed implementing competency testing, continuing education requirements, and extension of the Circular 230 ethics rules to all return preparers (REG-138637-07).

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