In accordance with its roadmap outlined in the Publication 4832, the Internal Revenue Service (IRS) has increased the federal tax return oversight. As such, the IRS has been keen in enforcing its regulations and introducing new ones. An example is the regulation that requires that all the paid tax return preparers gets the PTIN. The agents who engage in preparing the tax forms (preparers) also have to pass the EA exam for them to be licensed and have their licenses renewed. This is designed to help them gain the competency that is necessary for preparing the tax returns.
An enrolled agent (EA) is any agent that is authorized as tax practitioner. These are the people that are empowered by the Treasury Department and are able to represent the taxpayers in all the levels of administration, such as the appeals, the collection, or the examination departments in the Internal Revenue Service.
Other than just representing the taxpayers, they also offer additional services such as tax consultancy and preparing returns for the state and federal governments. They are overseen by the Return Preparer Office (RPO) and the regulations are available in the Circular 230.
For an individual to become an enrolled agent, you must pass the 3 Special Enrollment Exam (SEE) parts and successfully pass the background check. Alternatively, you can become an EA by working for the IRS for at least 5 years in the position where you are involved in tax code interpretation. The SEE are divided into three parts; Part I deal with the individuals, part 2 deal with businesses and part 3 covers representations, the procedures and the practices.
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.
Once the license is granted, there are still several conditions to be fulfilled for the license to be renewed. The renewal application form is Form 8554. In it, there are the eligibility criteria for renewal to be granted. The most important one is the requirement that an agent completes 72 credit hours of continuing education (CE) in the 3 year cycles with a minimum of 16 CE every year and 2 additional credit hours in the Ethics every 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.
An enrolled agent (EA) is any agent that is authorized as tax practitioner. These are the people that are empowered by the Treasury Department and are able to represent the taxpayers in all the levels of administration, such as the appeals, the collection, or the examination departments in the Internal Revenue Service.
Other than just representing the taxpayers, they also offer additional services such as tax consultancy and preparing returns for the state and federal governments. They are overseen by the Return Preparer Office (RPO) and the regulations are available in the Circular 230.
For an individual to become an enrolled agent, you must pass the 3 Special Enrollment Exam (SEE) parts and successfully pass the background check. Alternatively, you can become an EA by working for the IRS for at least 5 years in the position where you are involved in tax code interpretation. The SEE are divided into three parts; Part I deal with the individuals, part 2 deal with businesses and part 3 covers representations, the procedures and the practices.
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.
Once the license is granted, there are still several conditions to be fulfilled for the license to be renewed. The renewal application form is Form 8554. In it, there are the eligibility criteria for renewal to be granted. The most important one is the requirement that an agent completes 72 credit hours of continuing education (CE) in the 3 year cycles with a minimum of 16 CE every year and 2 additional credit hours in the Ethics every 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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