Registered Tax Preparer - CPA in registered only status

[LCP]

Could someone here please explain to me why a higher level professional would risk not taking the minimum CPE to retain a CPA license, and prefer to submit to a written examination for a much more restrictive license with less clout?

What clout?

[taxxcpa]

Why risk it?

Could someone here please explain to me why a higher level professional would risk not taking the minimum CPE to retain a CPA license, and prefer to submit to a written examination for a much more restrictive license with less clout?

I believe the restrictive license might be selected as a way to avoid taking CPE and to minimize license fees.

It would be a viable choice if you were completely retired, but if you are going to prepare taxes, even if your state allows you to prepare taxes without CPE and at a reduced license fee, it would be better to remain a full-fledged CPA without any restrictions. The fees and the CPE would be worth it to avoid having to drop down the food chain.

[Lion]

Clout

Lay people recognize the CPA designation. And, the IRS allows you to represent clients. Only half of that with the EA, and none really with the RTRP. Keep your CPA active.

[taxxcpa]

Keeping up with changes

And how, praytell, would you keep up on tax changes without CPE? .

I rely on self-study and researching situations that arise rather then on CPE which I take only because I have to take it. I learn a lot more from independent study and reading forums such as this one. Every year I get at least one return that has something that I have no idea how to handle. I research it, ask questions on forums, then, after finding out how to handle it, I write myself a set of instructions or an example of how to handle it. Then if it ever occurs again, I refer back to what I found and double-check to see if anything has changed.

CPE courses all too often deal with things that "might" come up, but may not occur in my practice. A course on how to prepare a return for a bank might be great for someone who actually has banks as a client, but, for me, it would be useless.

The first time I encountered UPE, I had no idea how to handle it. Now I know and it comes up regularly.

[iratax]

My interpretation and that is all it is is my opinion. The statement "Prepare and sign a tax return, but cannot use the CPA designation " does not allow you to hold yourself out to the IRS as a CPA. Since you are not a CPA to the IRS you need another credential to prepare returns. EA, RTRP or CPA.

MI does not have the authority to say you can prepare federal Tax Returns under the new circular 230. You could do state returns but not Federal.

[Gary2]

Lay people recognize the CPA designation. And, the IRS allows you to represent clients. Only half of that with the EA, and none really with the RTRP. Keep your CPA active.

Half of what? People recognizing the designation, or the IRS allowing you to represent clients?

I'd say that recognition of the EA designation is far less than half the recognition of the CPA designation. And I'll bet that once RTRP gets off the ground, it will quickly overtake the EA in recognition, unless the IRS does something about it.

But as for representation, is there anything that a CPA is allowed to do that an EA isn't (based solely on these credentials)? I can imagine specific cases of business evaluation, but I'd expect that expertise in the industry to be required (as opposed to any CPA). Perhaps cases where attestation is needed, but that's uncommon, and more in the role of being a witness as opposed to representation.

[Gary2]

Let's not jump to conclusions concerning motivation. Choosing to maintain a professional license is a business decision. If someone decides to focus solely on tax preparation, with no intent of doing representation or accounting, that's their decision.

The way I read the base note, it had nothing to do with avoiding CPE altogether. It is really about whether the RTRP exam will be required under these circumstances.

[taxxcpa]

If he wants to remain a CPA but avoid representing himself as such and taking the CPE required to maintain all rights as a CPA, he would have the option of no longer getting his PTIN based on his CPA status--in which case, he would need to take the examination.

[LCP]

If he wants to remain a CPA but avoid representing himself as such and taking the CPE required to maintain all rights as a CPA, he would have the option of no longer getting his PTIN based on his CPA status--in which case, he would need to take the examination.

That's a whole lot of opinion made to sound like fact.

For the record, I'm not the least bit worried about passing any test the IRS comes up with and might decide to do that if it comes down to it.

[taxxcpa]

That's a whole lot of opinion made to sound like fact.

For the record, I'm not the least bit worried about passing any test the IRS comes up with and might decide to do that if it comes down to it.

It seems only logical that you cannot get your PTIN without CPE by virtue of being a CPA. However, you are right, it is only an opinion. Maybe you have identified a loophole.

[Lion]

Lay people recognize the CPA designation. And, the IRS allows you to represent clients. Only half of that with the EA, and none really with the RTRP. Keep your CPA active.

I should have said something like, "only one of those," instead of "half."

Lay people recognize the CPA designation. Lay people do NOT for the most part recognize the EA designation.

The IRS allows CPAs to represent clients. The IRS allows EAs to represent clients.

No power/water/etc., so little access to internet. Snow in October! What global warming?

[Gary2]

It seems only logical that you cannot get your PTIN without CPE by virtue of being a CPA. However, you are right, it is only an opinion. Maybe you have identified a loophole.

Being idle and bored in a cramped waiting room, and wanting to exercise my mobile hotspot, I searched around for CPE requirements and discovered that Wisconsin has no CPE requirements for CPAs (though membership in the WICPA, which I assume is voluntary, does).

So I would have to conclude that a licensed CPA in Wisconsin, who otherwise maintains that license, has no CPE requirement to prepare tax returns.

[LCP]

It seems only logical that you cannot get your PTIN without CPE by virtue of being a CPA. However, you are right, it is only an opinion. Maybe you have identified a loophole.

I agree but my "plan" was to take the same amount of CPE required of a RTRP rather than the 40 hours (including 8 of accountng and auditing) required of an active CPA.

[LCP]

Being idle and bored in a cramped waiting room, and wanting to exercise my mobile hotspot, I searched around for CPE requirements and discovered that Wisconsin has no CPE requirements for CPAs (though membership in the WICPA, which I assume is voluntary, does).

So I would have to conclude that a licensed CPA in Wisconsin, who otherwise maintains that license, has no CPE requirement to prepare tax returns.

Plus I doubt that any states require that CPA CPE be tax related.

Same goes for attorneys.

[Davc]

Plus I doubt that any states require that CPA CPE be tax related.

Same goes for attorneys.

For CPA's Ohio does require tax CPE if a certain level of total revenue is tax work. However that's the only state I've heard of with tax CPE required.