Enrolled Agents Credential Act?

[Bees Knees]

Some inside the IRS are already making statements as to how to convert us into another arm of their function and they're serious. This is not a flippant response to Bees Knees - it's simply that when the rubber hits the road, our clients really do have a concern about who they're paying, and for what. They don't know much about taxes, but they're not stupid - and there will be broadbased resistance from those whom we have to collect our fees.

But at a certain point, complexity becomes too complex. Without regulation, the complexity becomes un-enforceable. If the tax preparer is in the dark because he/she is not required to take CPE or competency exams and refuses to do so, what makes him/her any better than the barber down the street, or the hair dresser, or the plumber?

We all experience the ridiculous things told to our clients, but then we won't admit that we too could be guilty of the same behavior? If we can't stomach passing on the cost of regulation on to our clients, then what makes us any better than the do-it-yourselfers using Turbo Tax? Ask yourself, Why am I better than Turbo Tax? Why am I better than my barber?

The answer is because you took the time to learn about the new tax law. Perhaps everyone calling themselves a tax pro should be required to do the same. That's called regulation.

[Gary2]

The text of the bill has finally been posted on Thomas. Interestingly, it doesn't have an official title (i.e., "Enrolled Agent Credentials Act isn't used).

The body of the bill is short enough to post here:

SECTION 1. ENROLLED AGENTS.

(a) In General- Chapter 77 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
`SEC. 7529. ENROLLED AGENTS.

`(a) In General- The Secretary may prescribe such regulations as may be necessary to regulate the conduct of enrolled agents in regards to their practice before the Internal Revenue Service.
`(b) Use of Credentials- Any enrolled agents properly licensed to practice as required under rules promulgated under subsection (a) shall be allowed to use the credentials or designation as `enrolled agent', `EA', or `E.A.'.'.

(b) Clerical Amendment- The table of sections for chapter 77 of such Code is amended by adding at the end the following new item:
`Sec. 7529. Enrolled agents.'.
(c) Prior Regulations- Nothing in the amendments made by this section shall be construed to have any effect on part 10 of title 31, Code of Federal Regulations, or any other related Federal rule or regulation issued before the date of the enactment of this Act.

I see no cost involved, other than anything implicit in codifying the IRS's right to regulate the conduct.

However, I am disturbed by codifying the label "Enrolled Agent", since I don't think the fight to change that label is over. I'd be happier if the bill authorized the IRS to rename it, at its discretion.

[taxea]

I guess taxea - under your thinking - there probably shouldn't even be an EA title.

These professional organizations have fought extremely hard to obtain the recognition for
EAs so you can have the right to practice and show the designation for the exam you took.

And you don't feel the need to respect their efforts - is that what the attitude is in Hawaii?

If they have fought so hard why doesn't Joe Citizen know the difference between a CPA and an EA. Only two states, that I know of, require licensing. I didn't say I don't respect their efforts but I would respect them more when i see results. I haven't seen any public ads from these organizations that explain EA's. The IRS recognizes us-the public has no idea who we are.

[thomtax]

If they have fought so hard why doesn't Joe Citizen know the difference between a CPA and an EA. Only two states, that I know of, require licensing. I didn't say I don't respect their efforts but I would respect them more when i see results. I haven't seen any public ads from these organizations that explain EA's. The IRS recognizes us-the public has no idea who we are.

Because it takes money and numbers to gain results. Fighting hard, without numbers is a tough battle. Too many EAs are unwilling to join and pay their dues to help give this help and support. They want to just sit back and enjoy the results of their efforts, if they are successful and if they are unsuccessful, bad-mouth the efforts as not being the way that they would do it, (if they were doing anything that is).

CPAs have large numbers to help put forth their advertising. They are often pressured into joining their association and work to get their names out there. And have been very successful at it.

And for the record, I have heard radio ads advertising the Enrolled Agents as tax professionals.

[S T]

It seems whether Natl or local Chapters, there has been a lot of promtion for Enrolled Agents - There are "call in" radio programs for Q & A, there are TV spots, and Newspaper Articles.

It has taken a lot to be recognized, and I for one appreciate the efforts, but as posted in earlier threads, it does take a joint effort and support.

As an EA you can choose to support or not support, but if you are not supporting by your involvement, then let's not criticize. It is your choice!

Sandy

[Uncle Sam]

thomtax - you couldn't have expressed it any better. Thank you.
And to ST - I totally agree with you.

This past year alone has seen progress. Thanks to the Past President of NAEA
Enrolled Agent was put into Webster's Dictionery as an official word, and EAs
got a postage stamp in their honor.

What better publicity do you want than that?

[Bees Knees]

There is a brand of facial tissue called Kleenex. There is another brand called Puffs.

When I ask for a facial tissue, I ask if I can have a Kleenex. I don't mean I only want a Kleenex brand of facial tissue. Anyone will do. At least in this part of the country, Kleenex is synonymous with facial tissue (you never hear anyone asking for a facial tissue). No matter how much advertising done by Puffs, their name will never become synonymous with facial tissue.

A similar use of the name Ski-Doo occurred for a while in Minnesota back in the 1970s. Ski-Doo was a popular brand name for a snowmobile (or snow machine as they say in Alaska). People began calling all snowmobiles Ski-Doos. No matter how much advertising Polaris or Artic Cat did, their brand names would never become synonymous with snowmobile.

The public often refers to an accountant as a CPA. The public doesn't understand the state licensing requirement to become a CPA. Nor does the public understand the alternative designations in some states for licensed accountants. When the public uses the term CPA, the public is often using that term as synonymous with someone who does some type of accounting job, whether officially licensed or not. No matter how much advertising done by EAs, their name will never become synonymous with some type of accounting job.

That doesn't mean Puffs can never be recognized as a leading facial tissue. Nor does it mean EAs can never be recognized as highly skilled tax professionals. In fact, I'm not sure I would want my EA status to be synonymous with just any accountant. When everyone in the business becomes one, then it is no longer special or unique.