The Department of the Treasury has a bureau responsible for collecting taxes and processing tax returns annually. This is the IRS or Internal Revenue Service and is under the direction of the Commissioner of IRS. This bureau also administers the Internal Revenue Code.
In cases where people file claims due to errors or for any other reason, there are advocates like enrolled agents to assist them in such matters. These advocates need to pass the enrolled agent exam so they can legally represent the clients. There is no educational or experience prerequisite, just their advanced knowledge on these codes and issues.
The right of agents to practice before the IRS is being standardized by the Federal statute. Applicants must pass the exam to be able to have the authority to fully represent taxpayers with their claims. They will be regarded as FATPs or Federally Authorized Tax Practitioners. Aside from enrolled agents, other candidates who can gain this status are attorneys and CPAs or Certified Public Accountants.
Practitioners can vouch for clients on refund concerns, appeals, payment issues, collection procedures, and audits. They must first get a Preparer Tax Identification Number, or PTIN. The PTIN is needed so they can be allowed to setup federal tax returns and claims for refund.
Candidates must pass all three parts of the Special Enrollment Examination. This covers a lot of areas of the Internal Revenue Code. Or they could at least work at the IRS for five consecutive years in a position which is regularly focused on the application and interpretation of the provisions of the Internal Revenue Code and the rules regarding estate, income, employment, gift, or exercise taxes. Should the applicant fail the exam by getting a score of 104 or less, each part may be taken up to four times in any testing year.
Once the applicant successfully pass the test, within one year they must submit Form 23. After this, a background check will begin. This investigation will include the personal credentials of the applicant and the business compliance in relation to tax payments.
Agents can maintain their active status by renewing after their first enrollment cycle that is three years before the date of its renewal. They must also finish 72 hours of continuing education requirements every three years. Agents must also obtain at least sixteen hours for every year, in which two hours must be on ethics.
Applicants for renewal will know their specific cycle by referring to the last number of their SSN. They can search for it in Circular 230 Section 10.6d. Agents can also process the renewal online via Pay.gov. They can type 8554 in the search area, or they can also do this in paper form by submitting Form 8554.
If the applicant is unable to submit the requirements needed for renewal promptly, they will be placed under the inactive agents list. They must also give immediate response to a noncompliance notification or fulfill all the necessary requirements to avoid being included in the roster of inactive individuals. They have to renew their statuses in order to be enrolled agents, to use the EA designation, and represent taxpayers legally.
In cases where people file claims due to errors or for any other reason, there are advocates like enrolled agents to assist them in such matters. These advocates need to pass the enrolled agent exam so they can legally represent the clients. There is no educational or experience prerequisite, just their advanced knowledge on these codes and issues.
The right of agents to practice before the IRS is being standardized by the Federal statute. Applicants must pass the exam to be able to have the authority to fully represent taxpayers with their claims. They will be regarded as FATPs or Federally Authorized Tax Practitioners. Aside from enrolled agents, other candidates who can gain this status are attorneys and CPAs or Certified Public Accountants.
Practitioners can vouch for clients on refund concerns, appeals, payment issues, collection procedures, and audits. They must first get a Preparer Tax Identification Number, or PTIN. The PTIN is needed so they can be allowed to setup federal tax returns and claims for refund.
Candidates must pass all three parts of the Special Enrollment Examination. This covers a lot of areas of the Internal Revenue Code. Or they could at least work at the IRS for five consecutive years in a position which is regularly focused on the application and interpretation of the provisions of the Internal Revenue Code and the rules regarding estate, income, employment, gift, or exercise taxes. Should the applicant fail the exam by getting a score of 104 or less, each part may be taken up to four times in any testing year.
Once the applicant successfully pass the test, within one year they must submit Form 23. After this, a background check will begin. This investigation will include the personal credentials of the applicant and the business compliance in relation to tax payments.
Agents can maintain their active status by renewing after their first enrollment cycle that is three years before the date of its renewal. They must also finish 72 hours of continuing education requirements every three years. Agents must also obtain at least sixteen hours for every year, in which two hours must be on ethics.
Applicants for renewal will know their specific cycle by referring to the last number of their SSN. They can search for it in Circular 230 Section 10.6d. Agents can also process the renewal online via Pay.gov. They can type 8554 in the search area, or they can also do this in paper form by submitting Form 8554.
If the applicant is unable to submit the requirements needed for renewal promptly, they will be placed under the inactive agents list. They must also give immediate response to a noncompliance notification or fulfill all the necessary requirements to avoid being included in the roster of inactive individuals. They have to renew their statuses in order to be enrolled agents, to use the EA designation, and represent taxpayers legally.
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