1.1 Authority to Practice Flashcards
(14 cards)
what does practicing before the IRS include?
- communicating with the IRS for a taxpayer
- Representing a taxpayer at conferences, hearings or meetings with the IRS
- preparing necessary documents and filing them with the IRS for a taxpayer BUT NOT A TAX RETURN
- rendering written advice with respect to an entity, transaction, plan or arrangement having a potential for tax avoidance or evasion
what does practicing before the IRS not include?
- preparing a tax return, amended tax return or a claim for a refund
- furnishing information upon request of the IRS
- appearing as a witness for the taxpayer
who may practice before the IRS?
- Attorneys
- Certified Public accountants (CPAs)
- Enrolled agents
- Enrolled Actuaries
- Circular 230
- Annual filing season program participants
- unenrolled individuals, if specifically permitted
- appraisers
Explain Attorney’s CPAs and EAs
- unlimited practice before the IRS
- they can sign returns and refunds when they are completed
- they can represent anyone before the IRS, examination and appeals and any return or refund
- they can give unlimited tax advice including tax planning
ASFP Participants/ Other specifically allowed to practice
- Limited practice before the IRS
- sign returns and refunds
- they represent before IRS agents, customer service representatives and employees, during examination only, and returns they have worked on
- can do limited return or refund preparations
who are enrolled agents
an Enrolled Agent is a person who has earned the privilege of representing the taxpayer before the IRS by either passing a 3 part comprehensive IRS test or through experience as a former IRS employee
how many hours of CE credits do EAs need
they must complete 72 hours of continuing education courses every 3 years
an EA can represent a party upon filing a written declaration that he:
- is currently qualified
- he has been authorized to represent the party
what are non form 1040 series preparers
individuals who certify that they do not prepare or assist any 1040s series tax returns or claim a refund except 1040-PRs or 1040-SS
they represent a taxpayer before revenue agents, customer service representatives or similar officers and IRS employees
Who is prohibited from practice before the IRS?
- A member of Congress who indirectly receives, agrees to receive or seeks any compensation
- an officer or employee of the US or its agencies
- a state employee who deals with state tax matters
- an individual convicted of any offense involving dishonesty or breach of trust
what is the minimum number of CE credits for renewed enrollment
a minimum of 16 hours must be completed in each year of the enrollment
what cant an EA use as its designation
“I am Certified by the IRS”
how long should a practioner maintain records of his or her CE credits
CE credits must be retained for a period of 4 years following the date of renewal of enrollment
what are best practices according to the IRS
