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    EA vs. RTRP

    I tend to agree with the thoughts expressed in an earlier thread. I have difficulty understanding why an enrolled agent would want to relinquish that credential and take the RTRP instead.

    The idea that you have to take fewer hours of CPE seems silly and unpersuasive to me. Plus, one would be giving up the ability to represent a taxpayer in an audit where someone else prepared the return.

    What I find credible, and reasonable, is the argument that some tax pros might want to be able to advertise with both credentials, or just use the RTRP designation after their name, even if they are also an enrolled agent.

    Holding both credentials is not the same as dropping the enrolled agent license.

    The theory behind this argument is that with the IRS campaign to educate the public on the new rules, the public may not understand the EA designation. So some EAs feel that they are at a disadvantage, because unless they take the RTRP exam, they can't use those letters after their name.

    Put another way, some feel that the letters RTRP may have more value than the letters EA for marketing and advertising purposes.

    While I understand and respect this reasoning, I don't agree.

    The public has never had a good understanding of the EA credential. NAEA has worked for many years to try to increase public awareness. NAEA has also tried to get the IRS to develop marketing and public awareness of the EA credential. These efforts have not failed, but they have not been wildly successful either.

    With the implementation of the new rules, we have a wonderful opportunity to educate the public about both credentials.

    I've been an EA for about four years. My business card does not have the letters EA on it. Instead, just below my name, it says "Admitted to practice before the Internal Revenue Service." This verbiage is authorized by Circular 230.

    I may decide to change my business card in the next couple years, depending on what kind of marketing and publicity is done by the IRS and the NAEA. But right now I am comfortable with what I have.

    I won't be surprised if the IRS ultimately decides that you can't hold both credentials at the same time. If an EA really wants to be an RTRP, they could ask the IRS to put their EA license into inactive status. There is a procedure for this in Cir. 230. It is meant mainly for someone who is retired. But it makes it possible to return to active status later.

    As for the question of what would happen if an EA takes the RTRP exam and fails, I have no idea. I don't think it would lead automatic revocation of the EA license.

    It has been said that the RTRP exam is meant to be a "subset" of the EA exam, i.e., Part 1 of the EA exam, because it is limited in scope to individual returns.

    While this may be a reasonable way to describe it, it is not entirely accurate. The RTRP exam has some stuff in it that is not in Part 1 of the EA exam, such as ethics and practice requirements. The RTRP exam is not Part 1 of the EA exam. It is a different exam.

    Failure to pass that exam should not automatically invalidate the EA credential.

    It might raise questions about the person's competency, but that's not the same as automatically revoking or cancelling the EA license.

    Most lawyers who have been practicing for many years could not pass the bar exam today without a massive amount of study and preparation. But that doesn't mean that they are not qualified to practice law.

    Personally, I think it is probably a mistake for an EA to take the RTRP exam.

    With the right marketing, we can educate the public that an EA has qualifications and privileges that are greater than that of an RTRP. I just don't see EAs actually losing business because they cannot use the letters RTRP.

    BMK
    Burton M. Koss
    koss@usakoss.net

    ____________________________________
    The map is not the territory...
    and the instruction book is not the process.

    #2
    Well said, Koss. I think we EA's should write to Shulman and tell him we feel discriminated against because the IRS is not advertising and explaining us to the public. I can't begin to tell you how many of my clients call me their CPA or Accountant. No offense meant to CPA's but I correct them everytime.
    I am not a CPA, my expertise is in TAXES!
    Believe nothing you have not personally researched and verified.

    Comment


      #3
      Marketing

      In the other thread, Brad Imsdahl wrote:

      The IRS is going to be doing some heavy advertising in the near future telling the public they need to hire an RTRP to prepare their taxes. That is free advertising for any of us who have the credential. TheTaxBook will soon be adding an RTRP study guide to help pass the RTRP exam. We encourage all, including EAs and CPAs to study for and pass the RTRP exam. Several of our authors on our writing staff (which includes EAs, CPAs, and Attorneys) have already done so.
      And Gretel wrote:

      Brad, isn't this also discrimination, if they promote highly one designation? While I see CPA's in a different category (licensed by the State), I do see EA's under the wing of the IRS as well and I feel discriminated against.

      On the other hand one could say that using RTRP and EA in the same context would not do justice to the much tougher test and requirements for an EA.

      I guess EA's can't win this game unless heavily advertised by our professional organization, which I know they will do. Still, IRS could support this more.
      If the IRS launches a marketing campaign which conveys to the public that they "need to hire an RTRP" to do their taxes, without any reference at all to the other licensed professionals who are qualified to do so, I expect the NAEA and the CPA organizations to have a cow.

      This is a lot of projection and speculation. The IRS has done some really stupid things over the last few years, but I'm not sure it's going to go down this way. It would be very simple for the IRS to tell the public that they need to make sure their return preparer is an authorized tax practitioner, or something like that, and then, in smaller type, identify all four types of authorized practitioners. We don't need people from Madison Avenue to figure this out.

      If the IRS actually launches a campaign that only refers to RTRPs, and NAEA does not immediately take action, I will show up in person at the next NAEA board meeting to ask them why they have not addressed the issue.

      BMK
      Last edited by Koss; 03-05-2012, 01:16 PM.
      Burton M. Koss
      koss@usakoss.net

      ____________________________________
      The map is not the territory...
      and the instruction book is not the process.

      Comment


        #4
        well said Koss , as expected from you.
        now i am hoping that the negative comments will not make our truly professional experts that post here to stop posting.
        We have lost some valuable people because of feelings being hurt or whatever. and i truly miss them when i see some answers to questions. i hope they are still watching and will come back at some point.

        Comment


          #5
          Ea/rtrp

          Thank you Koss and taxea -

          You've expressed exactly what my thoughts were.

          And to those of you who have become defensive regarding my prior posts - I'm only
          expressing MY opinion, just as you have expressed yours.
          Uncle Sam, CPA, EA. ARA, NTPI Fellow

          Comment


            #6
            I know I just read in a post that the associations asking the IRS to education the public about EA's have be thwarted. Can't find the post. I wouldn't join any of the associations for many years because I didn't think they were doing enough to education the public about us and I still don't. If the IRS doesn't do it why are we payiing so much for memberships? Why can't NAEA and others do the advertising???
            Even the investment guru's recommend TP's use a CPA. I have been know to write to Dave Ramsey and others to educate them.
            Just ranting!!!
            Believe nothing you have not personally researched and verified.

            Comment


              #7
              Originally posted by Koss View Post
              The IRS has done some really stupid things over the last few years,
              Perhaps, that says it in a nutshell. Perhaps some of us EAs have very little faith that IRS has any plans to educate the public about what it means to be an EA. At best, we will be included in the fine print at the bottom while the RTRP designation gets top billing.

              For no other reason, I think taking the RTRP exam and adding that to my EA credentials hanging on the wall might not be such a bad idea.

              Comment


                #8
                Bees Knees...I would put up a sign that says "My license/registration and training with the IRS exceeds that of a registered tax preparer"
                Believe nothing you have not personally researched and verified.

                Comment


                  #9
                  Originally posted by taxea View Post
                  I
                  Even the investment guru's recommend TP's use a CPA.
                  !!
                  That's what I recommend too.
                  (but if I were an EA rather than a CPA, my recommendation would be different)

                  Comment

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