Delayed Renewal for Enrolled Agents

[Koss]

I'm starting a new thread on this...

Until I saw the earlier thread, I was not aware of the magnitude of the problem.

In the recorded message, the IRS has acknowledged a delay. The recording also states those who filed a renewal application on time still have a valid enrollment, i.e., the enrollment has been automatically extended to allow additional processing time for the renewals. So some might say that there really isn't a problem.

I think there is a problem. In fact, I think this is a bit of a scandal.

Enrolled agents only have to renew every three years. The renewals are staggered, based on the person's SSN. Only one third of all enrolled agents have to renew each year.

The IRS should be required to answer some tough questions:

- If the IRS cannot handle the renewal process for the existing enrolled agent program, how can it reasonably be expected to adequately manage the new registration, licensing and testing of thousands of RTRPs who have to renew annually?

- What is the cause of the backlog in processing EA renewals?

- How many renewals were received during the application window, and how many are still pending?

- How many applications are getting processed each day?

- What is being done to address the underlying cause of the delay?

- How many staff members are assigned to this task?

- How much of the process is automated?

- Have resources been diverted from the existing EA program in order to ramp up the RTRP program?

- Isn't it time to rethink the expiration date of March 31? Isn't it kind of silly to have the license expire in the middle of the filing season?

I have initiated contact with a reporter for one of the major media outlets. I have no idea whether they will consider this newsworthy. But if they do run a story, they may want to interview some enrolled agents who have not received their renewal.

If you are in this group, you may e-mail me if you are interested.

BMK

[AZ-Tax]

One of the excuses I heard was....

According to an officer at one of the local EA chapters, she said "OPR was focusing on reviewing the tests for RTRPs, rather than enrolling new EA's & renewing continuing EA's."

I think it was the first week of Apr I called to check on the status of my EA. It was a Wed and Thurs @ 10am AZ time and the recording said they were closed.

Call me EA lucky (not) for my newly issued EA card expires in 2013 and since the IRS will be issuing EA’s & RTRP's thru 2013, chances are I will waiting & waiting in 2013 for my EA renewal card.

I know I am beating a dead dog but was the creation of the RTRP really necessary? Couldn't the same goal been achieved by sitting for the Part 1 (individual) & Part 3 (rules & regs)? Than the TP can add Part 2 (business) at their discretion. Imagine the money saved and chaos avoided.

[jimfrombx]

Last year they extended the renewal from 3/31/2011 until 8/31/2011, and it took 96 days to issue renewal card.

[erchess]

A Scandal??

Koss the IRS has more to do every year and recently a smaller budget every year. Even without that the worst you could say is that (gasp) a government agency has some inefficiencies and signs of incompetence. If there is no bribery, sex, or injury/loss of life involved then to me things have not risen to the level of a scandal.

[dtlee]

Not sure what is the true problem here.

A few years ago, a friend of mine was alerting people to the "major victory" we had in having our fees reduced to $30 for renewal. My reaction was that it means that it means that our credentials require only $10 per year more to administer than RTRPs.

I was dubious of that, but simultaneously did not understand a) why the difference was so small and b) what the additional $10 worth of administration actually was.

However, as Burton indicates, if they cannot renew enrolled agents with one-third of us renewing each year, it does not bode well for the significantly larger number or RTRPs which they will be forced to handle annually.

I won't go as far as "scandal" but I have to believe that there is a serious breakdown in whatever process they are following. In fact, it is unclear if there is any process that they are following. When I called them in April, they checked and confirmed that they were working on my renewal from November 1, 2011. At the time, I indicated that there was a possibility that they just "put me on hold and then came back to just shut me up." Today I found out that my renewal had still not been been worked on and that I should get something in 2-3 weeks. The person was very understanding and is working on my renewal as we speak (this time I believe them).

I cannot understand (nor does it really matter if I do) a process where friends who I helped renew in February already have cards, but I do not. It is not in the order of the renewals. It does not appear to be alphabetical. It does not appear to be in EA Number Order. It does not appear to be in PTIN Order. It does not appear to be in Birth Date Order. If anything, it appears to be in disorder.

One starts to wonder, if they are not doing it in any rational order, doesn't it make it harder to predict how long it will take or when they will get done?

All I know their deadline is May 31 and I know that they are telling me that my enrollment expires 60 days from March 31 (i.e., tomorrow) due to the extension they've given themselves.