CSEA Education Foundation

Transcription

1 CSEA Education Foundation Your career as an Enrolled Agent

2 Jean Nelsen, EA CSEA Education Foundation

3 POP QUIZ What does EA stand for?

4 Today we are going to talk about What s an Enrolled Agent? What is the licensing process to become an Enrolled Agent? How does becoming an Enrolled Agent help you in your career goals?

5 What is an Enrolled Agent? Enrolled Agents (EAs) are tax practitioners with technical expertise in taxation and are fully authorized to represent taxpayers before all administrative levels of the Internal Revenue Service (IRS) including audits, collections and appeals. Enrolled Agents can be self employed or work for small or large firms.

6 What License allows you to represent taxpayers before the IRS? Enrolled Agent Federal Licensed by the United States Treasury Certified Public Accountant Licensed by a state Attorney Licensed by a state

7 How do Enrolled Agents differ from other licensed taxpayer representatives? Enrolled Agents are the only taxpayer representatives who receive their license from the United States Treasury. CPAs and Attorneys are licensed by each individual state.

8 How will the EA license benefit me? It is a profession with: Job security Everyone pays taxes and the tax laws are complicated. Widely useful knowledge Many companies prepare their financials on tax basis accounting and accounting firms expect you to know the tax consequences of accounting decisions. Structure Adherence to tax law ensures accurate results. Meaningful work Professionals who are proficient in tax law are held in high regard.

9 How many Enrolled Agents are there? There are approximately 40,000 Enrolled Agents in the United States There are also Enrolled Agents living and working in foreign countries

10 How do I become an Enrolled Agent Pass the IRS Special Enrollment Exam (SEE) -OR- Be an employee of the IRS for 5 years regularly interpreting the provisions of the IRS Code and Regulations

11 What is the SEE exam? Comprehensive three-part tax exam which covers taxation issues for: Individuals Businesses Corporations, partnerships, estates and trusts Representation, Practices and Procedures (including Ethics)

12 How comprehensive is the SEE exam? You are allowed 3.5 hours to complete each of the three parts Each part contains 100 multiple choice questions Parts can be taken in any order Passed parts of the exam remain active for 2 years

13 POP QUIZ What is the historic pass rate for the SEE exam? A. 60% B. 90% C. 42% D. 70%

14 POP QUIZ What is the historic pass rate for the SEE exam? A. 60% B. 90% C. 42% D. 70% Correct

15 How can I prepare to take the SEE exam? Self study Facilitator-led correspondence courses Intensive review course Specialized SEE prep courses offered through some community colleges and CSEA chapters Any combination of the above

16 I am planning on taking a CPA exam prep course, can I use this material to study for the SEE exam? Much of the study material for the regulation (REG) section of the CPA exam will help you pass the SEE exam however, you should supplement this with some dedicated SEE study material Many companies that offer CPA review courses also offer SEE prep courses

17 Are there scholarships available for the SEE prep courses? CSEA Education Foundation offers scholarships for SEE prep courses as well as other tax courses Most of these scholarships will cover 100% of the cost of the SEE prep course

18 Are there any other requirements to be an Enrolled Agent? In addition to the application fee payment, the Treasury Department will conduct a background investigation based on detailed information you must provide after you pass the exam. The investigation will include an examination (not an audit) of your tax returns for the past 3 years. A college degree is not a requirement to become an Enrolled Agent, making Enrolled Agent an ideal part time career choice for students in the accounting and taxation field.

19 POP QUIZ Who is the largest taxpayer in the United States? A. Microsoft B. ExxonMobil C. Berkshire Hathaway D. Apple E. Chevron

20 POP QUIZ Who is the largest taxpayer in the United States? A. Microsoft B. ExxonMobil C. Berkshire Hathaway D. Apple Correct $6 Billion (2012) E. Chevron

21 Can I get a part time job as an EA or potential EA while I am still a student? Temporary agencies, especially those that specialize in accounting and taxation, allow students to work flexible schedules and gain experience in tax preparation while they are preparing for the SEE exam. Employees who have a license, such as an Enrolled Agent, command higher salaries even while working in temporary positions

22 What other employment opportunities are there for an Enrolled Agent? Enrolled Agents are needed in: Small and large public accounting firms Law firms State departments of revenue Investment firms Banks Private practice

23 POP QUIZ Who prepares U.S. President Obama s tax return? A. Daniel Werfel B. Michael Solheim C. Deloitte LLP D. Michelle Obama E. None of the above

24 POP QUIZ Who prepares U.S. President Obama s tax return? A. Daniel Werfel B. Michael Solheim Correct C. Deloitte LLP D. Michelle Obama E. None of the above

25 I have thought about going into private practice. Is that really a possibility? There are several ways to go into private practice; they include: Building a practice from the ground up using marketing and referrals Purchasing a tax franchise Purchasing a portion or all of an existing tax practice

26 How do I find a reputable tax practice to purchase and how much will it cost? Contact a company that specializes in the sale of retiring or downsizing tax and accounting practices Because each firm is different, each sale will be different. Expect times the annual gross of the existing firm to be a good opening negotiable amount.

27 Is there financing available to assist in the purchase of an existing practice? Financing is available from: Small Business Administration Local banks & credit unions Private equity groups Seller financed Most purchases will require a 15% - 20% down payment

28 POP QUIZ What % of all jobs in the United States are provided by small businesses? A. 20% B. 33.3% C. 55% D. 1%

29 POP QUIZ What % of all jobs in the United States are provided by small businesses? A. 20% B. 33.3% C. 55% Correct D. 1%

30 Let me show you some pictures of my tax practice which has been in business at the same location for more than fifteen years

31