This section of the exam pertains to Enrolled Agent procedures for the filing process, and includes topics regarding accuracy; information that is shared with taxpayers; regulations and sanctions; record maintenance; and electronic filing.

Accuracy is an important part of the Enrolled Agent's role as a representative of the taxpayer. Any mistakes can be costly in terms of time, money and reputation. Enrolled Agents must pay special attention to maintain the highest standards of accuracy and be familiar with:

  • Duplicate entry recognition
  • Inconsistencies with source data
  • Miscalculations
  • Tax software

Information Shared with the Taxpayer
Enrolled Agents are required to share certain information with taxpayer clients and should be aware of:

  • Consequences of dishonesty
  • Record-keeping requirements
  • Significance of signature – joint and several liability, penalty of perjury

Record Maintenance
As an Enrolled Agent, you will be responsible for maintaining client records. It is important to have an understanding of record maintenance requirements, including:

  • EITC due diligence requirements
  • Rules regarding the return of client records and documents
  • Length of time to retain records and returns
  • List of prepared returns - name, social security number, type of return

Electronic Filing
Enrolled Agents can apply to become an Authorized IRS e-file Provider. The IRS encourages filers to become e-file providers to save money and increase productivity. To become an Authorized IRS e-file Provider, Enrolled Agents must create an IRS e-Services Account, submit an application to become an Authorized IRS e-file Provider, and pass a suitability check. Enrolled Agents should understand the following concepts regarding electronic filing:

  • Advertising standards
  • Appeal process
  • Application process to become an e-file provider
  • Compliance requirements
  • Definitions and responsibilities of an ERO
  • Electronic return requirements
  • E-file authorization and documentation - Forms 8879 and 8453
  • Levels of infractions
  • Rejected returns and resolution

Resources For Preparing For The Exam

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