Most people want to have as little to do with the Internal Revenue Service as possible. Getting mail from them is seldom a good sign. To avoid problems the majority of working Americans file their taxes on or before the annual deadline, and pay whatever they owe. Many individuals without complicated assets fill out the forms themselves and file them electronically. Others prefer to spend a few dollars and have a professional preparer handle the job. These are not people who normally require the services of someone who has gone to the trouble of taking and passing the enrolled tax agent exam.
It is more common for corporations, partnerships, trusts, estates, and individuals with valuable assets to employ these professionals. They not only use them to prepare their taxes, but rely on the agents to present them in front of the IRS if the occasion arises. In fact these are the only individuals, with the exception of accountants and lawyers, who are permitted to negotiate on their client's behalf with government agents. They are even more qualified than most lawyers and CPAs, because taxes are their entire focus.
Because they have such specialized careers, they make more money than others in the field without this designation. Individuals who are interested in becoming certified often want to know what is involved and how long it takes. The first thing they do is acquire a preparer identification number. Anyone who is preparing taxes for the public should already have this identification. Next, agents must take and pass all three parts of the special enrollment examination. All applicants must pass a compliance check to make sure their returns are up to date and there is no outstanding debt owed to the IRS.
The first of the three part test concerns individuals. Agents must answer multiple questions regarding gathering personal information necessary for returns, itemizing assets, deductions, and credits. They must be able to review and assist individuals with financial matters.
Financial expertise in the business sector is the heart of their test's second section. Applicants will be asked to explain how they differentiate between the various kinds of business entities. They must explain how S corporations and partnerships work and how the taxes differ between the two. Agents must have a clear understanding about farming operations and what constitutes taxation exempt status.
The final section of the examination focuses on practices and procedures. The applicants have to understand what representation before the IRS entails in any situation in which them may find themselves. They have to know the proper way to prepare clients, obtain power of attorney if necessary, and understand penalties, fines, and repercussions.
The sections are scored separately, so if an applicant doesn't pass all three parts, he or she will get credit for the sections they did pass. They have up to two years to successfully pass all three. Books are not allowed in the testing area, and each portion takes approximately four hours. Designated agents are required to take continuing education courses and adhere to the Treasury Department's provisions.
Many corporations and individuals have complicated taxation structures. They need competent and knowledgeable representation when they face the IRS. Someone with specialized skill will give them an advantage.
It is more common for corporations, partnerships, trusts, estates, and individuals with valuable assets to employ these professionals. They not only use them to prepare their taxes, but rely on the agents to present them in front of the IRS if the occasion arises. In fact these are the only individuals, with the exception of accountants and lawyers, who are permitted to negotiate on their client's behalf with government agents. They are even more qualified than most lawyers and CPAs, because taxes are their entire focus.
Because they have such specialized careers, they make more money than others in the field without this designation. Individuals who are interested in becoming certified often want to know what is involved and how long it takes. The first thing they do is acquire a preparer identification number. Anyone who is preparing taxes for the public should already have this identification. Next, agents must take and pass all three parts of the special enrollment examination. All applicants must pass a compliance check to make sure their returns are up to date and there is no outstanding debt owed to the IRS.
The first of the three part test concerns individuals. Agents must answer multiple questions regarding gathering personal information necessary for returns, itemizing assets, deductions, and credits. They must be able to review and assist individuals with financial matters.
Financial expertise in the business sector is the heart of their test's second section. Applicants will be asked to explain how they differentiate between the various kinds of business entities. They must explain how S corporations and partnerships work and how the taxes differ between the two. Agents must have a clear understanding about farming operations and what constitutes taxation exempt status.
The final section of the examination focuses on practices and procedures. The applicants have to understand what representation before the IRS entails in any situation in which them may find themselves. They have to know the proper way to prepare clients, obtain power of attorney if necessary, and understand penalties, fines, and repercussions.
The sections are scored separately, so if an applicant doesn't pass all three parts, he or she will get credit for the sections they did pass. They have up to two years to successfully pass all three. Books are not allowed in the testing area, and each portion takes approximately four hours. Designated agents are required to take continuing education courses and adhere to the Treasury Department's provisions.
Many corporations and individuals have complicated taxation structures. They need competent and knowledgeable representation when they face the IRS. Someone with specialized skill will give them an advantage.
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