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.
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.
In addition to these, they offer tax consultancy services and help in filing the state and federal returns among several other related services. The Return Preparer Office (RPO) is in charge of overseeing the enrolled agents.
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.
There is no stated educational or even experience that is a prerequisite for one to become an enrolled agent; all that is required is for the individual to have a deep knowledge of the relevant tax code and this is only proven by passing the SEE. Once you pass the SEE or have worked for IRS for five years in the relevant department, you earn the enrolled agent license.
The granting of a license does not mean that one can now relax; the license validity can only be retained if it is renewed at the right time. In the Form 8554 used for application in renewal, there are the conditions set for renewal to be granted. The agent has to complete 72 credit hours of continuing education (CE) within the cycle of three years. This means that there should be at least 16 credit hours of CE every year and two more credit hours specifically in 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.
However, all these can be useless unless you ascertain that the credit hours you earn are from the IRS CE sponsored institution with a valid license. The course normally consists of accounting packages, the tax preparation software and ethics among other topics. It can be offered online as well as from physical 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.
In addition to these, they offer tax consultancy services and help in filing the state and federal returns among several other related services. The Return Preparer Office (RPO) is in charge of overseeing the enrolled agents.
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.
There is no stated educational or even experience that is a prerequisite for one to become an enrolled agent; all that is required is for the individual to have a deep knowledge of the relevant tax code and this is only proven by passing the SEE. Once you pass the SEE or have worked for IRS for five years in the relevant department, you earn the enrolled agent license.
The granting of a license does not mean that one can now relax; the license validity can only be retained if it is renewed at the right time. In the Form 8554 used for application in renewal, there are the conditions set for renewal to be granted. The agent has to complete 72 credit hours of continuing education (CE) within the cycle of three years. This means that there should be at least 16 credit hours of CE every year and two more credit hours specifically in 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.
However, all these can be useless unless you ascertain that the credit hours you earn are from the IRS CE sponsored institution with a valid license. The course normally consists of accounting packages, the tax preparation software and ethics among other topics. It can be offered online as well as from physical classes.
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