The department of Internal Revenue Service (IRS) has been keen in improving revenue collection and improving their services in the recent past. In order to achieve their targets, the oversight of the federal tax returns has greatly improved. This is evidenced by the regulations that all preparers of the paid tax returns use PTIN which is an identification number for egents. In addition to this, one has to pass the EA exam before being licensed and getting the PTIN. The license renewal also requires getting the minimum credit hours of continuing education. All these are designed to ensure that the enrolled agents are fully competent in tax return preparation.
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.
There are only two sure ways of getting the license. In case you have been working for the Internal Revenue Services for a minimum of 5 years in a position involves in interpreting the code, then you qualify to get the license as an approved enrolled agent. The only other alternative that is applicable to most people is to pass the Special Enrolled Exams (SEE) and the subsequent background check. The SEE is a three part exam dealing with individual tax (Part 1), business tax (Part 2), and representation, procedures and practices (Part 3).
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.
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.
However, for those who are just enrolled and are renewing the license for the first time, they are required to complete the pro-rated CE credit hours before the first renewal. This translates to 2 credit hours per month in addition to 2 credit hours in Ethics every year.
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.
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.
There are only two sure ways of getting the license. In case you have been working for the Internal Revenue Services for a minimum of 5 years in a position involves in interpreting the code, then you qualify to get the license as an approved enrolled agent. The only other alternative that is applicable to most people is to pass the Special Enrolled Exams (SEE) and the subsequent background check. The SEE is a three part exam dealing with individual tax (Part 1), business tax (Part 2), and representation, procedures and practices (Part 3).
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.
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.
However, for those who are just enrolled and are renewing the license for the first time, they are required to complete the pro-rated CE credit hours before the first renewal. This translates to 2 credit hours per month in addition to 2 credit hours in Ethics every year.
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.
About the Author:
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.
No comments:
Post a Comment