If an existing EA is convected of a felony?

[JAinNC]

No I have not commited a felony.
A local paper ran a story of a guy in a near town who has been arrested for growing and manufacturing, etc, etc. The newpaper also brought out that he had been convicted of a felony in 2003. And there he was on the NC offenders website.

I had "thought" that a felon cannot remain an EA. So I did a search on this board and found quotes by Bees Knees (05-27-05 re EA ethics.

After reading the quotes from Cir 230 (which I must not have read as carefully as I had thought every year for my 2 hrs of ethics credit) I now see that perhaps a drug manuf and distributor can remain an EA.

"Under 10.51 Incompetence and disreputable conductfor which a practioner may be censured, suspended or disbarred from practice befor the IRS includes, but is not limited to -
(a) Conviction of any criminal offense under the revenue laws of the US;
(b) Conviction of any criminal offense involving dishonesty or breach of trust;
(c) Conviction of any felony under Federal or State law for which the conduct
involved renders the practioner unfit to practice before the Internal Revenue Service;
................................. "
What do you all think would render the practioner unfit to practice before IRS ?
and
Is there a national register to look up EAs in good standing (other than members of the NAEA)?

I wonder why I even care - As long as I am doing the right thing, I shouldn't worry about the Guy who can Prep a 1040 for 30.00 because his main income is in the woods and on the streets.
I'm human. But I believe in ethics and integrity.

[WhiteOleander]

I can't remember exactly, but I think when I filled out my EA application, it asked me if I had ever been convicted of any crime other than a traffic violation.

And, in the list you posted, I would think that his crime certainly falls under the dishonesty category.

To my knowledge, there is no centralized list of EA's in good standing. But there should be.

Also, you should pursue it. If he is indeed not allowed to prepare tax returns any longer, his clients have a right to know.

[Luis Mopeo]

Also, you should pursue it. If he is indeed not allowed to prepare tax returns any longer, his clients have a right to know.

Pursue it? Why does that sound like a dangerous idea?

[WhiteOleander]

Pursue it? Why does that sound like a dangerous idea?

Huh??? I don't know what you mean.

[sea-tax]

I think the OPR is requried to maintain a list of all EA's in good standing, and I think that this list maybe distributed upon request through the free info act or something like that.

[Gene V]

Also, you should pursue it. If he is indeed not allowed to prepare tax returns any longer, his clients have a right to know.

I think you might be right, if you get a felony on your record, you could lose your EA license. However, that would not stop you from preparing tax returns, you don't need a EA license to legally prepared tax returns.

[WhiteOleander]

I think you might be right, if you get a felony on your record, you could lose your EA license. However, that would not stop you from preparing tax returns, you don't need a EA license to legally prepared tax returns.

Well, the way I understood it was, that if you were an EA and had it taken from you for malfeasence(sp), then you were prohibited from preparing any returns.

Other EA's and CPA's etc cannot work with you.

[ChEAr$]

clarification

JAinNC, notice your quote from circular 230 lists the four items, but also says:
"but is not limited to". Thus any state conviction for growing pot, whatever,
grounds for disbarment.

The OPR does not publish a list of EA's due to privacy considerations. (When first
admitted, new EA's are asked if they wish to take their name off of any public lists.)

But OPR will confirm or deny whether a specific individual is an EA in good standing.

[New York Enrolled Agent]

Well, the way I understood it was, that if you were an EA and had it taken from you for malfeasence(sp), then you were prohibited from preparing any returns.

Other EA's and CPA's etc cannot work with you.

W.O.

Gene V. is correct. Remember - becoming an EA allows you to PRACTICE before the IRS. It does not give you any rights to prepare tax returns. It is possible to lose your right to practice but (since there is no registration of tax preparers) you still are not automatically prohibited from preparing tax returns.

Other EAs and CPAs may not engage the "guilty" party to help in practice before the IRS.

[Luis Mopeo]

Huh??? I don't know what you mean.

I probably misunderstood what you meant by "pursue it." It sounds like you think the person should be assertive in making sure the bad seed gets what's coming to him.

Especially since the authorities have already made an arrest, it seems like a bad idea to get involved, especially since the perpetrator appears to be involved with drug trafficking.

Maybe you meant something else.

[WhiteOleander]

I probably misunderstood what you meant by "pursue it." It sounds like you think the person should be assertive in making sure the bad seed gets what's coming to him.

Especially since the authorities have already made an arrest, it seems like a bad idea to get involved, especially since the perpetrator appears to be involved with drug trafficking.

Maybe you meant something else.

No, I had misunderstood the OP. If indeed there is an arrest, then I would not get involved.

[erchess]

Wait a minute,

I have always been told that an EA who has lost enrollment cannot prepare a tax return for money. I've also always been told that preparers who are not in any way Enrolled or Certified were less likely to be punished for the same error on a return than their Enrolled or Certified counterparts. I have also been told that no firm that prepares or efiles returns can hire a disbarred or suspended EA. I could have been told wrong or misunderstood or things could have changed.

[JAinNC]

Thanks for all the input

I just checked back in after a long weekend. Love you guys.

[WhiteOleander]

I have always been told that an EA who has lost enrollment cannot prepare a tax return for money. I've also always been told that preparers who are not in any way Enrolled or Certified were less likely to be punished for the same error on a return than their Enrolled or Certified counterparts. I have also been told that no firm that prepares or efiles returns can hire a disbarred or suspended EA. I could have been told wrong or misunderstood or things could have changed.

That's what I have always understood also.

[Luis Mopeo]

I have always been told that an EA who has lost enrollment cannot prepare a tax return for money. I've also always been told that preparers who are not in any way Enrolled or Certified were less likely to be punished for the same error on a return than their Enrolled or Certified counterparts. I have also been told that no firm that prepares or efiles returns can hire a disbarred or suspended EA. I could have been told wrong or misunderstood or things could have changed.

I don't believe that's correct. An EA can be placed on inactive status, lose status because of failure to satisfy requirements for renewal, or lose status because of failure to apply for renewal. An EA who has lost enrollment status cannot use the Enrolled Agent designation and cannot represent taxpayers before the IRS. But their ability to charge to prepare a tax return has not been taken away.