"We are also still working on a start date for testing, and an effective date for the 15 hours of continuing education," Shulman said. He noted the IRS recognizes the need for a staged transition to the new system and waiving the CPE requirement would help the agency work through issues, including working with third parties who already certify courses. Testing, however, is expected to begin in June. Those required to take competency exams must pass them in order to receive a Preparer Tax Identificatin Number. The CPE and testing requirements do not affect CPAs, Enrolled Agents or tax attorneys.

The IRS is also refining rules for those who working in professional firms and prepare all or substantially all of a return under the supervision of an accountant, enrolled agent or lawyer. Shulman said he could not provide definitive information until final guidance is provided this year. "I will tell you that I am sympathetic to the argument that the rules should be flexible for people who have met a higher professional standard," he said.

Meanwhile, Shulman said the IRS has created the Return Preparer Office, which will be led by David R. Williams. The office will manage all activities related to continuing education and testing of professionals under IRS jurisdiction and will also have responsibility for the registration system.