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
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

Related Articles
  1. Financial Advisor

    How to Find the Best Life Insurance Agent

    Choosing a life insurance agent is the first and most important step in obtaining coverage. Buyers should pay attention to five key factors.
  2. Financial Advisor

    A Day In The Life Of A Real Estate Agent

    While every day is unique for a real estate agent, there are some activities that may be a typical part of an agent's day.
  3. Investing

    Do You Need A Real Estate Agent?

    There's no guarantee that realtors will act in your best interest, but it may be worth hiring one anyway.
  4. Taxes

    Need To Enroll In Obamacare? File Your Taxes

    Taxpayers who need to obtain health coverage under the Affordable Care Act can now do so easily and conveniently when they file their taxes through an eligible preparer.
  5. Insurance

    The Pro’s Guide to Selling Life Insurance to Your Clients

    Learn about the distinguishing characteristics a life insurance agent needs to be successful in the highly competitive life insurance industry.
  6. Investing

    How To Find The Best Real Estate Agent

    Most people don't have the time, expertise or motivation to go it alone and finding a good real estate agent becomes essential to enjoying a smooth real estate transaction.
  7. Investing

    What Real Estate Agents Don't Want You To Know

    While they can be instrumental in helping you buy or sell a home, real estate agents may ulterior motives.
  8. Investing

    6 Questions For Your Realtor

    Before you start working with a real estate agent – especially if you're the one paying the agent's commission – make sure you've made the right choice.
  9. Investing

    5 Reasons Why You Still Need A Real Estate Agent

    Doing the work yourself can save money, but it could end up being more costly than a realtor’s commission in the long run.
  10. Taxes

    What's IRS Form 2848 Used For?

    It's a power of attorney tax form and here's what it can, and cannot, do.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center