RTRP test

[oceanlovin'ea]

Several in the room at the seminar yesterday were talking about taking the RTRP test even though they were EA's. Their reasoning was that if you can use Registered Tax Return Preparer on your advertising in addition to EA or Enrolled Agent, it would be more recognizable to the public.

What do you think?

Linda EA

[lenboush]

Isn't that kind of like a doctor taking the paramedical exam so he can show that in his advertising?

Or like an attorney taking a paralegal exam so he can show that in his advertising?

I do realize that there is a difference but I think it is a reasonable analogy.

Just wondering.

[KBTS]

I almost posted the exact same thoughts as Len. As an EA, I have no idea why someone would want to do this. Instead of explaining all the benefits of being an EA (harder test to get designation, more CPE required, ability to represent clients before the IRS, etc.), doing this just lumps you together with everyone else with nothing to make you stand out from the crowd.

[Gene V]

Since we all are required to be registered with the IRS, you can alway advertised as register with the IRS and give your PTIN number, etc.

The Internal Revenue Service currently is implementing an oversight program to increase the quality of the tax preparation industry and to improve services to taxpayers. This program requires all paid tax return preparers to register with the IRS each year and have a Preparer Tax Identification Number (PTIN).

[oceanlovin'ea]

My thoughts were the same. As enrolled agents, we are trying so hard to make the public know who enrolled agents are and what we can do. It seems to me to be counterproductive to want to advertise a lower ranking.

I was just curious how others on this message board felt. It costs $116 to take that test. I can think of better ways to spend my money.

Linda, EA

[AZ-Tax]

Why do some CPA' also become EA's?

I still need to take Part 2 of the EA but have a hunch the RTP will eventually become THE name associated with Tax Preparation probably beating out THE current name, CPA. Thus I have been considering also taking the RTP after passing the EA. Another way of looking at it, why do CPA's also become EA's and yes I know the EA exam is taxes and nothing else but taxes but does the public really care?

I have never seen an CPA certificate nor an RTP certificate but will either have the following printed on the certificate: Is Enrolled to Practice Before The IRS?

[Matt Sova]

Tough Love

Hey Uncle Sam, let's not mince words now! As a CPA I have no desire to get an EA designation. If, at some point in the future I wish to retire and move out of Michigan I believe I can keep my Michigan CPA license alive and avoid having to test as an RTRP yet still prepare returrns out of another state (without calling myself a CPA in that state).

Of course I am not certain about this, because I have not researched it fully. I am at least 20 years away from retiring so I will cross that bridge when I come to it.

Back on your point US, you are correct. If you are an EA why worry about getting RTRP after your name? Although, I talked to an EA I know who said she and other EA's she knows are looking to take the beta test to drive the curve higher and make the future exam tougher. Will it work? I am not sure.

[Uncle Sam]

RTRP Test

Matt - I became an EA back in 1980. Became a CPA in 1988.
At that time, you couldn't have both licenses - so I had to turn back the Treasury Card to IRS.

Then in the mid-1990's - Circular 230 was changed, and a CPA COULD hold both licenses.
So I reapplied. Even with all the documentation of my old number - the IRS gave me a new number -way, way higher. But I don't regret it one bit. I have more allegiance to NAEA than any CPA membership organization, and find it more closely resemble my practice needs than the CPA organizations do.

[AZ-Tax]

Missed my point completely

AZ- I finally have to tell you - you are really ignorant. You are a real dope.

First - the RTRP is not ever going to take over any other license for being THE tax professional.
If you've been following the blurbs on all the boards - the RTRP is very restrictive compared
to even the EA license - where an RTRP can't provide the unlimited tax services before IRS that an EA can do.

Why CPAs become EAs?

For one reason - a CPA is a state license whereas the EA is a Federal license.
So if a practitioner retires to another state from where he/she is presently licensed, he/she can do tax work without having to worry about getting CPA licensed in the second state, as reciprocity rules between states are quite different.

But why would a person with a higher credential be interested in becoming an RTRP where
there are more restrictions on what services can legally be provided? I don't understand the reason for anyone wanting that.

If you don't have the desire to improve yourself by attempting to achieve higher standards - that's your decision - but don't chastise others for doing what they've done.

Uncle Sam, I am afraid you missed my entire point. Its how the public views us. When I attend NAEA events I heard EA after EA tell about losing a prospect to a CPA even though the EA told the prospect the EA specializes in taxes vs the CPA, its a Federal vs state license etc. etc. etc. and now in most cases the prospect is so confused and stays with their CPA they have been dealing with and lock their doors. One of the EA's told about a propect that for yrs thought they worked for the IRS due to the title Enrolled Agent. Silly as it sounds I am assured there is more then one consumer out there that thinks that. Similar having a Series 7 vs Series 6. My S7 license exam was 6 hours and way more intense then S6 vs S6 was only a couple hours long....does the public care, NO they want their investment to grow and could care less if the person has a S7 or S6. Today the S6 is more recognized by the public then the S7 and the main reason is there are far more S6's out there then S7's and same could hold true for RTP's. My point has nothing to do with EA's credentials in fact I have nothing but high regard for EA's since I am only 1 passing test away from becoming one.

I am going to take a wild guess but if more members use derogatory words like you did towards another member(me), TTB may just do away with this "valueable" message board now I dont you or anyone on this board wants that.

[Uncle Sam]

RTRP Test

I frankly couldn't care what the public perception is. It's their duty to learn the differences.
My concern is to get the higher more valuable credential.
You mention Series 6/7. When I first became associated with a financial planning firm I took the Series 6 to get started. But after I learned that I could only sell mutual funds to clients with a 6, and sell all sorts of securities with a 7-by the end of that year I took and passed the Series 7. I didn't go for insurance because I didn't feel comfortable with it, didn't feel qualified or competent to take the exam.

But the point is - I'm not led around by the ignorant public's perception of things. I have to answer to the government licensing authorities - not the public.

Yes - I know full well what you're talking about - where clients are lost to CPAs because the public is less aware of EA.

But to claim that RTRP will outpower the EA as THE tax professional - give me a break.

[Gretel]

Can we possibly get into a little more tolerance?

AZ just voiced his fears. Nobody knows what will happen. Each of us deals differently with different challenges.

I personally have stopped any advertising some years ago, and in that first year I had the highest number of new business from all prior years. When I became an EA 8 years ago, I didn't even bother changing my sign on the building to include the EA.

We all have different opinions about different things and different levels of fears. With all these "differences", why not celebrate what we have in common: the desire to be a good tax return preparer.

[oceanlovin'ea]

I didn't mean to open a can of worms with my question. Everyone does have their own opinion. We can start ours with courtesy to others.

I LOVE this message board and don't know what I would do without it. So I don't want to ever contribute in any way to jeopardizing our privilege of communicating here.

Linda, EA

[OtisMozzetti]

best use of time

As I see it, the best use of time and money for EAs is by advertising the capabilities and benefits of enrolled agents, far better than spending time and money working on any PTIN exam.

[AZ-Tax]

Ever have one of these days?

As I see it, the best use of time and money for EAs is by advertising the capabilities and benefits of enrolled agents, far better than spending time and money working on any PTIN exam.

Otis, I believe you meant RTRP exam vs PTIN exam, if not then I have another exam to take. Ever have one of those days where you are really multi tasking and in your head you thought you wrote this but didn’t, well when I wrote: Another way of looking at it, why do CPA's also become EA's and yes I know the EA exam is taxes and nothing else but taxes but does the public really care? What I thought I said was “here is the opposite, the CPA obtaining an EA for which the reason most likely is to enhance their knowledge of taxes for the CPA is currently the most recognized name by the public when it comes to tax preparation or at least in my neck of the woods”. If I was a CPA, I probably would not be inclined to obtain the EA for the CPA desingation I feel is bringing in the clients.

[Jesse]

I frankly couldn't care what the public perception is. It's their duty to learn the differences.
My concern is to get the higher more valuable credential.
You mention Series 6/7. When I first became associated with a financial planning firm I took the Series 6 to get started. But after I learned that I could only sell mutual funds to clients with a 6, and sell all sorts of securities with a 7-by the end of that year I took and passed the Series 7. I didn't go for insurance because I didn't feel comfortable with it, didn't feel qualified or competent to take the exam.

But the point is - I'm not led around by the ignorant public's perception of things. I have to answer to the government licensing authorities - not the public.

Yes - I know full well what you're talking about - where clients are lost to CPAs because the public is less aware of EA.

But to claim that RTRP will outpower the EA as THE tax professional - give me a break.

The "ignorant public's perception of things" can be very important to some of us if we value a growing clientele. So many of the public value the letters CPA behind a name and could care less for the letters EA because they have not a clue what an EA is.

From what I have heard from various sources is that the IRS is to launch a huge campaign to promote finding a RTRP to complete your income tax returns. They are going to launch a list of RTRP's for the public to assist them in finding a qualified tax preparer and the last I heard was that this list would be limited to RTRP's - no EA's, no CPA's. So once again the EA's are ignored.

In my opinion this will give RTRP's the edge to outpower the EA as THE tax professional! Your "ignorant public" are my valued current and potential clients. So they will now think they know what a CPA and a RTRP is but will still not have a clue as to what the heck qualifies me as an EA.

I have no intentions of taking the test, but if any other CPA or EA does the $116 may end up being valuable source of advertising for them. Either way we are all entitled to our own opinions and just because of a difference of opinion is no reason to call anyone ignorant or a dope.