1. Enrolled Agent Your Career of Choice TACTYC 2014 Annual Conference May 15-17, 2014 New Orleans, LA

2. This presentation is sponsored by In association with the Louisiana Society of Enrolled Agents And presented by Gina Jones, EA – Delhi, LA NAEA President 2010-2011

3. What is an Enrolled Agent? Enrolled Agents (EAs) are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before all administrative levels of the Internal Revenue Service (IRS) including audits, collections and appeals.

4. History of Enrolled Agents Enrollment dates back to 1884 when many questionable claims were presented for Civil War losses. Congress acted to regulate persons who represented citizens in their dealings with the U. S. Department of the Treasury.

5. Who CAN Represent Taxpayers before the IRS? Enrolled Agent – Licensed by US Treasury Certified Public Accountant – State License Attorney – State License

6. What Makes Enrolled Agents Unique? Enrolled agents are required to demonstrate their competence in all areas of taxation, representation and ethics. Only then are they given unlimited representation rights before the IRS. EAs are the only taxpayer representatives who receive their right to practice directly from the U.S. Government, and the only tax practitioners required by federal law to maintain their expertise through continuing professional education.

7. More differences…. Unlike Attorneys or CPAs, Enrolled Agents specialize in taxation. They advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts and any entities with tax-reporting requirements. Because EAs hold a federal license, they have an unrestricted right to represent any taxpayer in any state. CPAs and attorneys are state licensed and may, or may not, choose to specialize in taxes.

8. A Profession You Can Rely On Two things are certain in life: Death & Taxes The Tax Code is a continually changing field of taxation. An enrolled agents’ expertise enables them to effectively represent taxpayers.

9. Does IRS care who’s preparing taxes? Yes! The IRS is increasing oversight of federal tax return preparers. This oversight is being phased in over several years and implemented through a variety of new regulations. This began with the requirement that paid tax return preparers obtain and use a preparer identification number (PTIN).

10. High Demand – Countless Opportunities Private practice – full or part time Small & large public accounting firms Law Firms Corporate Accounting Departments Investment Firms Banks IRS / State Departments of Revenue Federal License not limited by state boundaries

11. What, exactly, does an EA do? Some enrolled agents work only during tax season or by appointment only, while most others have year-round practices. In addition to tax preparation and representation, many EAs offer other related services which may include: –Bookkeeping –Financial Planning or budgeting –Payroll Services –Financial Statement Preparation –Mortgage & Investment Services

12. What is Representation before the IRS? Acting on the taxpayer’s behalf Protecting the taxpayer’s rights Communicating with the IRS for the taxpayer regarding his/her rights or liabilities under law & regulations administered by the IRS Preparing and filing necessary documents Advising the taxpayer on return positions Representing the taxpayer at hearings with the IRS in Examination – Collection - Appeals

13. Are you qualified? An EA applicant needs to be Intelligent Organized Detail oriented Able to adapt easily to changes Eager to learn daily “Normal” – test to follow!

14. The Bathtub Test (A psychiatric evaluation for ‘normal’) Presented with a bathtub filled with water, you are offered a teaspoon, a teacup and a bucket. You are then told to empty the bathtub. How would you proceed?

15. A ‘normal person’ would use the bucket because it’s bigger than the spoon or teacup. Right??

16. No! A ‘normal person’ would pull the plug! Are you qualified to apply as an Enrolled Agent?

17. How do I become an EA? Applicants must: »Pass a comprehensive examination which covers all aspects of the tax code (Special Enrollment Exam) (SEE) or »Have specific employment experience with the Internal Revenue Service and »Pass a rigorous background check by IRS

18. Is there an educational prerequisite to becoming an enrolled agent? Unlike certain educational requirements to become an attorney or CPA, what counts toward becoming an enrolled agent is your knowledge of the tax code. This is proven by passing the SEE, or Special Enrollment Exam.

19. The Special Enrollment Exam Administered by the Department of the Treasury in conjunction with Prometric Three part exam that tests knowledge of taxation in the areas of individuals (part 1), businesses (part 2) and representation, practice & procedures (part 3). www.prometric.com/ with links available through www.irs.gov or www.naea.orgwww.prometric.com/www.irs.govwww.naea.org

20. The SEE process The SEE is an online examination. This track requires that you »Obtain a Preparer Tax Identification Number (PTIN) »Apply to take the Special Enrollment Exam (SEE) »Achieve passing scores on all parts of the SEE »Apply for enrollment on Form 23; and »Undergo a rigorous background check which includes a review of the applicant’s tax transcript. Failure to timely file or pay taxes can be grounds for denial of enrollment.

21. More on the SEE….. Prometric maintains approximately 300 test sites throughout the US and internationally. The SEE is offered year round except for the months of March and April. Candidates may schedule each part of the exam at their convenience, and in any order.

22. And even more…. The SEE is a multiple choice exam, and each question has four potential answers. The question styles may include direct questions, incomplete statements or “all of the following except” questions. Each part of the exam is approximately 100 questions. Test results are available immediately following the exam. If failed, each part may be taken up to 4 times in any testing year. Candidates have a two year window from the time they pass the first part to pass the remaining two parts of the exam.

23. Is there help to prepare for the SEE? There are many vendors who offer study programs, both online and in-person review classes. As a student, you learn by completing study assignments and quizzes. Some have periodic facilitator- led conference calls. There are separate courses for each part of the 3-part test, ranging from 6 to 10 weeks each.

24. IRS Experience The second track available to become an enrolled agent is by virtue of past service and technical experience with the IRS that qualifies you for enrollment. The tenure must be at least five years in a position which regularly interpreted and applied the tax code and its regulations. Candidate is still subject to background check.

25. Any requirements to keep my license? In addition to the stringent testing and application process (including background check) the IRS requires EAs to complete 72 hours of continuing education, reported every three years, to maintain their enrolled agent credential. EAs renew on a staggered schedule, based on the last digit of their social security number.

26. Additional Association Requirements Some member associations have greater educational requirements. For example, the National Association of Enrolled Agents (NAEA) requires its members to complete 30 hours of CE each year. Due to the expertise necessary to become an EA and the requirements to maintain the license, there are currently only about 46,000 practicing enrolled agents.

27. Ethical standards? Enrolled agents are required to abide by the provisions of the Department of Treasury’s Circular 230, which provides the regulations governing the practice of enrolled agents before the IRS.

28. OPR and RPO Enrolled agents, like CPAs and attorneys, are governed by the provisions of the Department of Treasury’s Circular 230. The Office of Professional Responsibility (OPR) and the Return Preparer Office (RPO) provides oversight to the enrolled agent profession, including testing and renewal of credentials.

29. Professional Standards Circular 230 describes professional duties in 3 categories: Personal Duties – compliance with business & personal tax obligations and behaving appropriately when interacting with clients and the IRS Duties to clients – using due diligence in providing advice, alerting the client to errors and avoiding conflict of interest Duties to the system of tax administration – prompt action on pending cases and adhering to standards for quality tax advice

30. Must I do all types of tax returns? No, you can limit your practice to the types of returns you prefer or specialize in certain fields. Some enrolled agents do not prepare tax returns at all, but instead limit their practice to Representation and Tax Collection or consultation matters. An EA is not required to have prepared the tax return in order to represent the taxpayer under examination.

31. How much money will I make? Because of the different types of tax practices, there is no definite answer to this question. It will depend on experience and time devoted to building a practice. Essentially, enrolled agents have unlimited earning potential.

32. Questions? Now’s the time….. For additional information, please contact: Gina Jones, EA @ ginajonesea@bellsouth.netginajonesea@bellsouth.net Member: Louisiana Society Enrolled Agents www.louisianaenrolledagents.orgwww.louisianaenrolledagents.org Member: National Association of Enrolled Agents www.naea.orgwww.naea.org