EA Failing RTRP Test

[ruthc]

Uncle Sam

Uncle Sam,
Do you operate this forum? Please do not try to discourage people from asking questions that you may not like or you may disagree with. Just pass by the thread title without viewing the details or responding to the thread if that will make you happy!!!.

[Uncle Sam]

EA/RTRP Test

ruthc - You don't operate this forum either. And I'm entitled to voice my opinion even if it
doesn't agree with yours.

I earned my credentials by adhering to the standards expected of the professional titles I hold - so it hasn't "gotten to my head" like you claim.

I just don't like cheap copout excuses for wanting to accept lower standards once I've
obtained the higher more respectable ones.

[Gary2]

RN=Registered Nurse
LVN=Licensed Vocational Nurse

I'm guessing this is a regional distinction. I'm used to seeing LPN for Licensed Practical Nurse, but a quickie web search suggests LPN and LVN are the same concept. I don't know which term is more commonly used nationwide.

[Gary2]

Voicing opinions is fine. Reasonable people can disagree.

Impugning the motives of others, or belittling their decisions because they don't match your personal values is not so fine.

For this type of discussion, the best approach is simply to describe your own decision and why, without commenting (directly or through insinuations) on the decisions of others. Nothing in this thread comes anywhere close to an ethical boundary, and thus the choices deserve respect as the individuals' choices.

[ruthc]

Don't Be Disrespectful

Uncle Sam,
I just started utilizing this forum and hope to continue to receive helpful feedback. I also have worked very hard to pass the EA exam in the 80's. I uphold the EA standards to the highest degree. I have earned the respect of all my clients. I don't have to be a CPA nor an EA to do that. In my opinion, your opinion that people are trying to give "excuses for wanting to accept lower standards" are simply not true and uncalled for. I have read several of your comments (opinions) on other threads concerning people questioning the RTRP designation and EA's. You don't know these people, backgrounds, nor reasons they are asking these questions. Please discontinue being disrespectful and thinking these people are trying to get around the system to prepare returns without the proper credentials.

[Brad Imsdahl]

Well, I do operate this forum, and our rules specifically state no insulting other posters.

To answer the original question: No, an EA will not lose his/her EA credential for failing the RTRP exam. Circular 230 governs the rules for becoming and maintaining EA status, and nothing in Circular 230 says an EA will lose that credential for failing the RTRP exam. The only thing that will happen is the EA cannot add the RTRP credential to his or her name.

As for the reason why an EA would want to become an RTRP, it is no different than why a CPA would want to become an EA, or one of the ACAT credentials offered by the Accreditation Council for Accountancy and Taxation. Multiple credentials help establish that the professional is proficient in several different areas of taxation and accounting. It shows the professional is more skilled and experienced than “minimally competent” paid preparers.

It may be short sighted to criticize an EA or CPA for wanting to add the RTRP credential to his or her name. 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.

[ruthc]

Thank you!

Thank you so much for the information. I will certainly tell anyone that has been asking me the same question your response. I appreciate it!
Thanks for your forum. All in all I think it is great!!!

[Uncle Sam]

RTRP Advertising

That's an interesting fact.

Knowing that IRS will be providing free publicity for a particular credential is a motive
for attaining it and attracting potential new clients due to that.

Guess CPAs and EAs need to change their marketing programs to promote their business..

[JohnH]

Laying aside for a moment the personal attacks, which I agree have no place here, I like the conviction behind the positions taken. If I were a client, I'd be comfortable having any of the posters in this thread on my side in an audit. Given your passion and commitment, it seems the client would be well represented.

[Bees Knees]

IRS RTRP ads

The public is not close to this issue and cannot be expected to know everything we have learned these past few years. The public will only know what they see on TV public service announcements put out by the IRS.

Knowing the way the IRS operates, in their attempt at constructing informational public service advertising that informs the public about the new RTRP credential, I can imagine such advertising will leave out or minimize the EA & CPA credentials. Thus, I can imagine certain members of the public will as a result have the mistaken impression that ALL paid return preparers are now required to have the RTRP credential.

I can imagine having to clarify this issue to several of my existing clients, and potentially losing new clients who believe they must find an RTRP to prepare their return.

[taxea]

A lot of people asking the same question are indeed researching it. This forum is one way of researching, isn't it? There are several places to check, but none seem to have any absolute answers yet (not even the IRS) .
I know one of the reasons I may take the test is because I am retired and do taxes because I love doing them. I only prepare individual and small business returns and don't wish to do corp's, etc (I used to do them, but don't now).
I have never had any of my clients have an audit (35 yrs). Therefore, I feel I can do the same amount of returns without having to complete as many CPE's. I do review a lot of archives to keep up on everything, and attend at least a 2 day seminar per year. I speak to a lot of EA's and a lot have the same feeling as I do. People just don't recognize the advantage of the EA vs a RTRP. The wording of a "registered tax return preparer" is easier to understand than "enrolled agent" for people looking at advertisements. My clients are not the "high end" clients. Most of my clients live in a small town that are low to middle wage earners (and I like it that way.). Several are high end wage earners.
Everyone has their own reasons for wanting to take the test. Some EA's want to take it in order to add another title to their name. I am not that person.
I wanted to know if anyone had the answer to my question. I don't want to be negatively judged on why I would want to take the test because I am an EA. I am weighing my options and am looking into this subject as are many others. Thanks

No this forum is to get the options of other tax preparers who may have more experience or knowledge and to get guidance on where to find the resource you are looking for.

I just can't imagine any reason why an EA would bother with taking the test. If you are an EA you are already a step above an RTRP which is the basic requirement to prepare and file tax returns. I don't find it difficult for the TP to figure out the difference and I certainly wouldn't give up my EA status.
Nothing in the code says an EA is required to do other than 1040 returns. I quit doing 1120 returns, too, because I got tired of people opening businesses as S-Corps and Corps without researching and understanding the requirements that go along with the business....like a knowledge of accounting or hiring someone who knows how to keep financial records. I won't even do LLC's unless it is a sole proprietor.

I know that the IRS is planning on limiting RTRP's to 1040 returns in the future. That will be sometime after all have been registered and passed the required testing. Only after that they might be required to test further in order to submit business returns. This does not exceed what EA's training and testing provides.

RTRP-registered tax preparer
EA-recognized tax expert

[Gretel]

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.

[taxea]

As a EA I just don't see a need to have an RTPR designation. My qualifications as an EA exceed that title and also that of a CPA when it comes to taxes. No offense intended to anyone. It is simply a matter of educating the TP.
I can only hope that the IRS, with all their free advertising, includes the fact that the RTPR designation is the basic requirement to prepare taxes.
I am one of those who doesn't think EA associations do near enough to educate the public on what EA's are.

[Brad Imsdahl]

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.

Up to this point, IRS has never promoted or advertised the EA status. The only reason anyone in the public knows about EAs is because of the work done by the professional associations, such as NAEA.

IRS has indicated that they will do extensive public service advertising about the new RTRP credential. They want the public to know that paid preparers must be registered with the IRS and pass a competency exam.

I think it would be great if NAEA tries to influence IRS to include EAs in their public service announcements. I'm sure the AICPA is already doing that for their members.

[Roberts]

I have a degree in Finance. I'm not going to go get an associates degree in business because it'll show I'm more broadly educated.

I am an EA. I need nothing else for what I do.

ACAT credentials are nothing more than someone wanting a quick credential because they can't get a better credential. JMO. I looked and never found a single job listing that required or requested an applicant hold one of their credentials. I work in the investments arena also. We have probably 100+ credentials you can earn in this field and only a few matter.