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
- 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
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
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
InvestingBuying or selling a home? What you need to know about real estate agent and broker fees.
InvestingThe tax records of more than 100,000 citizens were put at risk because of a hacker attempt on the IRS's e-file website.
Financial AdvisorWhile every day is unique for a real estate agent, there are some activities that may be a typical part of an agent's day.
Personal FinanceThere's no guarantee that realtors will act in your best interest, but it may be worth hiring one anyway.
Personal FinanceDon't go it alone in the real estate market. We'll show you how to find the help you need.
RetirementBy Amy FontinelleIf you want to buy a home, you'll need to get an agent. The most basic reason to get an agent is that you won't be able to see homes without one. (To learn more, readDo You Need ...
Managing WealthLearn about the distinguishing characteristics a life insurance agent needs to be successful in the highly competitive life insurance industry.
ProfessionalsHow to tell if you'd be good in this field. It is a common second career for many people, but isn't a good match for everyone.
ETFs & Mutual FundsTransfer agents maintain the records and documents related to shareholder accounts.