To be an EA or not to be

[dktax]

I am thinking of taking the EA exam and was just wondering if there are pros and cons. Since preparers must now take the licensing exam why not sit for the EA exam instead?

[oceanlovin'ea]

One pro is that you are licensed by the Internal Revenue Service and you have some added clout to your credentials. You can offer added services to your clients. You can represent them if necessary before the IRS. You can help them work out tax problems.

You will have added responsibility but most likely you have been doing business in an ethical way all along so it won't be that much of a change.

Linda, EA

[ChEAr$]

There are no "cons". Go for it!

[Uncle Sam]

To Be or Not To Be

All of us EAs are pros - it's a rarity for any of us to be cons.

[Lion]

Agree

I agree that you have to be tested anyway, so go for the gold. Definitely take the EA exam. Just being able to file a POA on e-Services and get a transcript immediately makes it worth it. Good luck.

[AJsTax]

I agree with all the above.

So far I have found no reason to regret taking the steps to become an EA.

[JG EA]

A negative side

To be an EA or not to be
That is the question
Whether ‘tis nobler in the mind to suffer
The slings and arrows of no fortune
Or to take arms against a sea of agents
And by opposing end them?
To Cry - to Sleep no more…..

[taxea]

All of us EAs are pros - it's a rarity for any of us to be cons.

Good one Uncle Sam!

[kpangelinan]

Ditto and Agree!

One pro is that you are licensed by the Internal Revenue Service and you have some added clout to your credentials. You can offer added services to your clients. You can represent them if necessary before the IRS. You can help them work out tax problems.

You will have added responsibility but most likely you have been doing business in an ethical way all along so it won't be that much of a change.

Linda, EA

Ditto.

There are no "cons". Go for it!

Ditto.

All of us EAs are pros - it's a rarity for any of us to be cons.

Agree.

So far I have found no reason to regret taking the steps to become an EA.

Agree.

[erchess]

Cons to being an EA

1. You have to do at least 16 hours of continuing ed every year or prove a very good excuse such as a long illness and in any event you have to average 24 hours a year over each three year renewal cycle. Unenrolled preparers don't have to do any continuing education unless their employer requires it or they want to avoid being sued for malpractice. Then too an EA might join NAEA and have to do 30 hours every year or have a mighty ironclad excuse and do extra hours in the subsequent year. On the other hand unless you turn away all but the simplest returns I defy you to put in less than 30 hours and stay up to date with your skills and knowledge.

2. You have to find an excuse other than ineligibility if you don't want to defend at audit a return you did not prepare or take an audit to the appeals division of the taxing agency. On the other hand I have found these situations stimulating so I'm glad I can do them.

3. You are subject to worse preparer penalties if you commit an ethics violation or a massive mistake on a tax return that is caused by your poor grasp of the rules or inability to ask questions of your client and document answers. On the other hand, that is slowly changing and eventually we're all going to face the same standards.

4. The test to to become an RTP is easier than the test to become an EA. No arguments there but nothing worthwhile is ever easy. The EA badge conveys greater rights and greater prestige.

All that said, if I were an unenrolled preparer with fewer than five years' full time or ten years' part time experience preparing returns, I might well be tempted to clear the lower hurdle first just so I did not slip up and lose the ability to work at all. I still insist that anyone who is serious about making a living in this business needs to aim for designation as a Practitioner: EA, CPA, or Tax Attorney.

[oceanlovin'ea]

I like the way Uncle Sam put it. That is really cool.

Linda, EA

[Lion]

Ea

The new RTP will have continuing ed requirements, just not ready to track it yet. And, RTPs will be covered under Circ. 230. And, if you have your PTIN, you have until 31 December 2013 to pass the new RTP test. But, there are fees for both sets of tests and for both applications. So, I still agree with your idea to go for the EA instead of the RTP. If for some reason you're having trouble passing all the parts of the EA exam, you still have the fall-back position of taking the new RTP exam before the deadline to keep your preparation/e-filing privileges. But, I don't think you as an experienced preparer will fail to earn your EA prior to that !!

[Davc]

All of us EAs are pros - it's a rarity for any of us to be cons.

True. The cons mostly aim for political office or a law degree.

[dktax]

And they say those of us in the accounting field have no sense of humor... Thank you all for your responses. It doesn't sound as though anything would change for me. I typically do at least 24 hrs of continuing ed each year. The main thing that I have concerns about are fees and my present client base. I do not foresee raising my fees and yet higher costs may make it necessary.I will continue to ponder but I am definitely leaning toward taking the EA test. Thank you all again.

[ChEAr$]

True. The cons mostly aim for political office or a law degree.

Or police officer?