From Lenny's Desk
The Sturbridge Taxman's Blog

Clues to help solve your financial and tax puzzles!

Cormier & Rea announce additional office at 483 Summer St, Ste 2000, Arlington, MA

IRS Tax Preparer Licenses

Categories Tax Tips (Fed)

The IRS has created a new designation for income tax preparers.  The new designation is called “Registered Tax Return Preparer”  and those desiring to have this designation are required to take a competency examination and have a continuing education requirement.

“Enrolled Agent” is the second available  license granted by IRS that has been in place since 1913.

What’s the difference?

Enrolled agents are federally-authorized tax practitioners who have technical expertise in the field of taxation and who are empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the IRS for audits, collections, and appeals. Beginning this tax season, all tax preparers, including EAs, will be required to have a preparer tax identification number, or PTIN. The newly registered will also be scrutinized for felony convictions and money owed to IRS – this is nothing new for EAs. All RTRPs will have to pass basic competency testing, which will be less challenging than the testing EAs presently undergo. And, the 15 hours of continuing professional education credits per year that registered tax return preparers will have to fulfill seems minimal compared to the 72 hours of continuing education EAs must complete every three years (even more if they are members of the National Association of Enrolled Agents).

One of the most differentiating factors between an RTRP and an EA goes beyond tax preparation and into IRS representation. While registered tax return preparers will be able to prepare tax returns and may, on a limited basis, represent taxpayers in examinations of tax returns they prepared, enrolled agents have the authority to prepare any type of tax return and may represent any taxpayer at all levels of the IRS, whether or not they prepared the return.

This message brought to you by: Cormier & Rea, Inc. Sturbridge MA. Providers of Income tax planning and preparation and financial planning. For more information about this or any other issues regarding income tax planning or preparation or financial planning, feel free to contact us. Like Cormier & Rea, Inc. on Facebook for timely updates.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material may have been developed and produced by a third party to provide information on a topic that may be of interest. Any third party content providers are not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Avantax affiliated financial professionals may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

Securities offered through Avantax Investment Services℠, Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory Services℠. Insurance services offered through an Avantax affiliated insurance agency. 3200 Olympus Blvd, Suite 100, Dallas, TX 75019 (972) 870-6000.

The Avantax family of companies exclusively provide financial products and services through its financial representatives. Although Avantax Wealth Management® does not provide or supervise tax or accounting services, Avantax representatives may offer these services through their independent outside business. Content, links, and some material within this website may have been created by a third party for use by an Avantax affiliated representative. This content is for educational and informational purposes only and does not represent the views and opinions of Avantax Wealth Management® or its subsidiaries. Avantax Wealth Management® is not responsible for and does not control, adopt, or endorse any content contained on any third party website.