The IRS has increased the oversight over the federal tax return in the recent years in accordance to its laid out roadmap in the Publication 4832, dubbed as the Return Preparer Review. This intensified oversight can be felt through several regulations that are relatively new. Among these regulations, there is a requirement that every paid tax return preparer must have the PTIN. In addition to this, the preparers of tax forms are required to undertake the EA exam so that they are able to demonstrate competency on preparing the returns. This comes from the continuing education.
Generally, the practitioners who are authorized and licensed by the federal government to engage in tax related tax services are referred to as the enrolled agents. They can therefore represent their clients (taxpayers) in the collection, appeal, and, examination in addition to several other administrative roles within the Internal Revenue Services (IRS) as the authorized agents.
They can also engage in other tax related services such as consultancy services and preparing the federal and state tax returns on their clients' behalf. The EAs are regulated by the Return Preparer Office (RPO) and the Circular 230.
Becoming an enrolled agent is not a one day affair. Generally, one can become an EA working with the IRS on the code interpretation position for at least five years. For the majority, the only other available avenue of becoming an enrolled agent is through passing the Special Enrolled Exams (SEE) and then passing the background check. The SEE is divided into three specific parts with the first part focusing on individuals or personal taxation, the second part focuses on business taxation, and the third and last part deal with representations, practices as well as procedures.
Generally, there is no prerequisite education or experience required for one to become an EA fulfilling the above stated requirements. The passing the SEE exam is the sure way through which you get the license and the SEE is there to ensure that an EA is able to demonstrate the knowledge and skills needed in the tax code.
However, having earned the license is not the end of the road; you have to use the Form 8554 to apply for the license renewal. However, in order to be eligible for this renewal, the enrolled agents have to complete 72 continuing education (CE) credit hours. These are completed for the 3 year cycles of at least 16 CE every year in addition to 2 CE credit hours in Ethics per year.
For the new enrolled agents, the requirement is that one completes the pro-rated CE credit hours for the first renewal to be granted. The arrangement is that the new agent earns a minimum of 2 credit hours of qualifying CE per month and 2 extra hours in Ethics CE per year. In addition to this, the documents proving the credits earned should be kept for four years.
The CE credit only qualifies if it is offered by an approved IRS CE sponsor with a valid program number. Among the courses offered in such a program includes the accounting courses, the tax preparation software and the ethics courses among others. These should be designed to enhance the professional skills of an EA can be offered online as well as in classes.
Generally, the practitioners who are authorized and licensed by the federal government to engage in tax related tax services are referred to as the enrolled agents. They can therefore represent their clients (taxpayers) in the collection, appeal, and, examination in addition to several other administrative roles within the Internal Revenue Services (IRS) as the authorized agents.
They can also engage in other tax related services such as consultancy services and preparing the federal and state tax returns on their clients' behalf. The EAs are regulated by the Return Preparer Office (RPO) and the Circular 230.
Becoming an enrolled agent is not a one day affair. Generally, one can become an EA working with the IRS on the code interpretation position for at least five years. For the majority, the only other available avenue of becoming an enrolled agent is through passing the Special Enrolled Exams (SEE) and then passing the background check. The SEE is divided into three specific parts with the first part focusing on individuals or personal taxation, the second part focuses on business taxation, and the third and last part deal with representations, practices as well as procedures.
Generally, there is no prerequisite education or experience required for one to become an EA fulfilling the above stated requirements. The passing the SEE exam is the sure way through which you get the license and the SEE is there to ensure that an EA is able to demonstrate the knowledge and skills needed in the tax code.
However, having earned the license is not the end of the road; you have to use the Form 8554 to apply for the license renewal. However, in order to be eligible for this renewal, the enrolled agents have to complete 72 continuing education (CE) credit hours. These are completed for the 3 year cycles of at least 16 CE every year in addition to 2 CE credit hours in Ethics per year.
For the new enrolled agents, the requirement is that one completes the pro-rated CE credit hours for the first renewal to be granted. The arrangement is that the new agent earns a minimum of 2 credit hours of qualifying CE per month and 2 extra hours in Ethics CE per year. In addition to this, the documents proving the credits earned should be kept for four years.
The CE credit only qualifies if it is offered by an approved IRS CE sponsor with a valid program number. Among the courses offered in such a program includes the accounting courses, the tax preparation software and the ethics courses among others. These should be designed to enhance the professional skills of an EA can be offered online as well as in classes.
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To help you prepare for your EA exam, simply take advantage of the annual programs on offer. Take a look at the CE courses online at http://www.taxpreparerlearningsystems.com.
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