A supervised preparer is an individual who does not sign, nor is required to sign, tax returns as a paid preparer. A supervised preparer is either:
- employed by an attorney or CPA firm, or
- employed by another recognized firm that
- is at least 80% owned by attorneys, CPAs, or enrolled agents, and
- is supervised by an attorney, CPA, or EA who signs the returns as the paid tax preparer.
When a supervised preparer renews or applies for their PTIN, they provide the PTIN of their supervisor, and the supervisor’s PTIN must be valid and active.
Supervised preparers may not:
- Sign tax returns they prepare or assist in preparing;
- Represent taxpayers before the IRS in any capacity;
- Identify themselves as a Circular 230 practitioner.
To indicate that a preparer is being supervised, from the Quick Menu of TaxSlayer Pro select:
- Configuration
- Firm / ERO / Preparer Setup
- Preparer(s) Menu
- Select the preparer, then Edit
- Select Supervised Preparer and enter the Supervisor’s Preparer Code when prompted.
After doing the above steps, the supervisor’s information will print in the Paid Preparer section of the tax return rather than the preparer's information.
Note that returns that have already been started before indicating that the preparer is supervised will not automatically reflect the change. Fixing this is simply a matter of refreshing the preparer code in the return.
To refresh the preparer information in the return to reflect the change, from the Main Menu of the tax return select:
- Personal Information
- Preparer Code
- Select Enter - Doing this reselects the same preparer code but pulling in the current information.
Additional Information
IRS Notice 2011.6 - Supervised Preparers and Non-1040 Preparers