How can you determine the competence of an EA over a CPA or attorney and come to the conclusion an EA is more?
Saturday, October 24th, 2009 at
10:59 pm
How can you determine the competence of an EA over a CPA or attorney and come to the conclusion an EA is more competent?
Tagged with: competence • conclusion • CPA • ea
Filed under: CPA
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I have been a tax preparer for 27 years and have been encouraged by IRS personnel, literaly scores of times, to take the exam for enrollment. I always politely decline. Why? Enrolled Agents (EA’s) can be disciplined by IRS for taking a position in conflict with IRS policy. I view that as a conflict of interest. My first and only duty is to my client and I am free to take a position contrary to IRS policy when consistent with current law or when existing law is subject to reversal or modification. Lawyers and CPA’s can do that too.
The IRS cannot threaten me with "pulling my EA card" if I do something one of their ill-trained but nevertheless insistent morons doesn’t happen to like, such as tricking them into "blowing a statute," for example, which I have done many times.
I recall one instance when I got the IRS thrown out of my client’s place of business and stopped their seizure of his assets by sending a fax to the White House. The Secretary of the Treasury called the District Director and he called the revenue agent in the field and told him "get out now!" I then caught the revenue agent in an outright lie and reported him to Internal Security. He got fired and I got a call from the Disrict Director who threatened to "pull my card." I told him I am not so dumb as to have a card to pull. He just laughed and advised me it would be a good idea if I didn’t take cases in his district for a while.
My client’s business was saved from seizure, sold to an new owner, and the IRS received $25,000 of the $1.2 million they claimed the former owner owed them. All concerned were quite happy with the outcome in the end.
But that was when Bill Clinton was president and the White House actually paid attention to the public.
There are competent CPAs that specialize in taxation. There are competent CPAs that do not specialize in taxation. There are also attorneys that do and do not specialize in taxation. ALL Enrolled Agents specialize in taxation.
Enrolled Agents are the only tax professional that has to pass an IRS exam and submit to having their tax returns reviewed for accuracy.
CPAs have to take continuing education units (CEU) every year in their field to maintain their credentials. For CPAs this continuing education is mainly accounting, NOT taxation.
Enrolled Agents have to take CEUs every year also. This is all in taxation. 24 hours per year. Many Enrolled Agents take more than 24 hours. Last year, I took 48 hours.
I have had to prepare amended returns for some people that have had their returns prepared by CPAs that were incorrect.
Am I saying that all CPAs are bad tax preparers? Not at all.
I’m saying that you should ask questions of your tax professional and be comfortable and confident that they will prepare an accurate return and be available should you be contacted by the IRS.
Tax attorneys can also be good tax preparers, but they can do something that Enrolled Agents AND CPAs cannot do. They can represent you in court if you have criminal charges filed against you. They can represent you in all courts. There are procedures to allow a non-attorney represent you in tax court. I was thinking of taking this exam.