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4/4/2017 Everything About EA Exam © www.IRSExams.school 2017

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Today’s Topic:

Everything you Ever Wanted to KnowAbout the EA Exam but Were Afraid to Ask

Welcome to TaxMama’s® Place

- Home of the


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Table of Contents

1. What is an Enrolled Agent?

2. Who qualifies to sit for the exam and Pre-requisites needed to pass the exam

3. Registering

4. 2017 Session dates, locations, costs

5. Scoring, passing, re-testing and retention

6. Content and make-up of the exam

7. How the Exam looks and works

8. What NOT to use - and why

9. Disputes and challenging your score.

10. Studying with Buddies

11. Your Questions

What is an Enrolled Agent?

An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee. Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.

Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before. Learn more about the rules governing the practice of enrolled agents in Treasury Department Circular 230 (PDF).

https://www.irs.gov/Tax-Professionals/Enrolled-Agents/Enrolled-Agent-Information


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Who Qualifies for the Exam?

• Education

• Age

• Citizenship/Residence

• Compliance

• PTIN


5PTIN Registration

• Mandatory for ALL paid tax preparers

• You must get a PTIN

• You cannot schedule an exam date without it

• Sign up online in minutes https://www.irs.gov/tax-

professionals/ptin-requirements-for-tax-return-preparers

• or on paper – it takes weeks - https://www.irs.gov/pub/irs-pdf/fw12.pdf

• New PTIN Fee $50 – per year (was $64.25)

• Renewal Fee $50 per year – (down from $63)

• Note: The PTIN database now allows you to see your completed (and posted) CE from all providers.

• Simply log in and follow instructions.


6RTRPs and AFSP

• The mandatory RTRP (Registered Tax Return Preparers) designation has ended. The IRS lost the lawsuit and will not be appealing (Loving v IRS http://www.cadc.uscourts.gov/internet/opinions.nsf/B63C3129A4FE761985257C7C00539949/$file/13-5061-1479431.pdf ). Why I am telling you about that? Because… *

• Instead, we have a VOLUNTARY program called the Annual Filing Season Program (AFSP) which provides a Record of Completion. https://www.irs.gov/tax-professionals/annual-filing-season-program

• To qualify for that, you must take a 6 hour course, pass a 100 question exam EACH YEAR! PLUS take an additional 2 units of continuing education annually.

• * For former RTRPs, the IRS allows them special privileges on the AFSP continuing education requirements. No 6-hour course, no 100 question exam –and only 15 hours CPE https://www.irs.gov/tax-professionals/reduced-requirements-for-exempt-individuals-for-the-annual-filing-season-program-record-of-completion

• This benefit applies to several other folks, too. Like those who passed Part 1 of the EA exam, CA, OR & MD licensees and a few others.

• Frankly, it’s easier to be an EA. Once you pass the 3 exams, you don’t have to

take any more exams – Ever! Just the continuing education.


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TaxMama’s® EA Exam Review

Register ASAP to get your class materials in time

• http://irsexams.school/registration/

• TaxMama Family Members get an additional 20% discount - http://taxmama.invisionzone.com/store/product/1-taxmama-family-membership/

• 2 or more people paying for registration at the same time –15% - 30% discounts are built into the order system. Just be sure to give us the name, email address and address of each person – in the comment box or by email.


8Form 2587 – Application for the EA Examhttps://www.irs.gov/pub/irs-pdf/f2587.pdf


9Registering & Scheduling

Easiest ��

• How do I schedule an appointment to take the examination? (updated 3/9/16)

• You can schedule an examination appointment at Prometric.com/see .

• You can fax Form 2587 https://www.irs.gov/pub/irs-pdf/f2587.pdfto 1-800-347-9242, then, after 24 hours you can either: log on to www.prometric.com/see or call 1-800-306-3926, to schedule and pay

• Goal: Set up your Prometric account TODAY! (free)

• Do not schedule your class until you are ready to sit for the exam.

• The fee is paid at the time of appointment scheduling. MasterCard, Visa, and American Express are accepted. E-checks are accepted only with telephone scheduling. $111.94 per exam (was $109)

• When you schedule online you will receive an appointment confirmation email containing the appointment date, time, location, examination name, and confirmation number. Review the confirmation email immediately for accuracy and, if an error occurred, notify Prometric at 800-306-3926Monday through Friday between 8:00 a.m. and 9:00 p.m (Eastern time)


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Exam Logistics

• When: You'll be able to take each Part of the exam FOUR times during the 2017 window, from May 2017 to February 28, 2018.

• Locations: The exam is offered in 300 locations in the U.S. (and some outside the U.S.), practically wherever Prometric has a facility. (Most are open Saturdays, some on Sundays and evenings.)

• Exam Time: 3.5 hours (4 hours including tutorial and survey)

• FEES: $111.94 for each part of the examination = $335.82 for all three parts (There is a $35 fee to reschedule 5-29 days before exam. Full price if 5 days before exam. No fee to reschedule if more than 30 days before the exam.) If you miss the exam – no refund.

• Prometric Phone Numbers: Main - 800.306.3926 Problems - 800-853-6769 (Shhh…)

• Register at Prometric - www.prometric.com/see

• Candidate Information Bulletin - http://irsexams.school/apply-for-the-ea-exam/ (scroll to bottom of the page.

• TaxMama® Scheduling Strategy


11Scoring, Passing, Re-testing,

• Prometric conducted a survey of enrolled agents to determine the tasks that they perform and the knowledge needed to perform those tasks. Based on the survey, a test blueprint was developed as well as test questions.

• Exam questions and scores based on quantitative analysis.

• Exam questions no longer have absolute scores – like 1 point for T/F, 2 points for multiple choice, 3 points for problems.

• Scoring developed interactively within the software based on prior testing results and refined with this year’s examinations.

• Test includes experimental questions that won’t be scored

• Passing = 105 (range 40-130)

• Failing messages, coded 1, 2, or 3

• Re-take each ‘Part’ up to 4 times during testing window

• TaxMama® (Re)scheduling Strategy if you don’t pass


12Score Report

Retention of Passed Exams

Once you pass the first exam you take, you have up to two years to finish all three exams.

For instance, you pass Part 3 on May 16, 2017. You have until May 16, 2019 to finish Parts 1 and 2.

Track the dates carefully, so you don’t miss by one day or two.

In fact, if the deadline is getting close, take it at least 2

days early – just in case you need one more attempt!


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14Passing Rates

Scores have improved dramatically since 2006. However, the 2015-2016 (2015) scores are lower than they were before –especially for Parts 1 and 2. Looking at scores in the summer:

• Average passage rates for folks taking Part 1 in 2016 is about 72% (down from 82% in 2014).

• Average passage for folks taking Part 2 was close to 58% in 2016 (down from 61%). Similar to the previous year.

• Average passage rates of folks taking Part 3 is a little above 88% in 2016. This average score holds steady.


15Content of the Exam?

• Teams of EAs drawn from the National Association of Enrolled Agents (NAEA) and the National Association of Tax Professionals (NATP) review and update prior year questions.

• EAs create new questions. Provide the 4 answer choices. Provide the legal source for the answer – i.e. Code Section, Reg, Rev. Ruling, etc.

• Once you become an EA and join NAEA or NATP, you can apply to participate.

• IRS and EAs review the new questions and overall exam

• People who teach the exam or develop materials may not participate

• The questions were intended to be designed to test for the skills an EA with two years experience should have.

• Frankly, the questions cover far more complex issues than EAs with 5 or 10 years experience often encounter.

• Too broad a base of data to learn easily – so you have to study a lot!


16List of Topics and their Weight in

overall exam

IRS topic and publication list separate by exam

Prometric Topic List for each exam:

• Part 1 – Individuals

• https://www.prometric.com/en-us/clients/SEE/Documents/IRS_Exam_Content_SEE_Part1.pdf

• Part 2 – Businesses, Entities and Specialized Returns


• Part 3 – Representation and Procedures



17Part 1 - Individuals

http://irsexams.school/enrolled-agent-examination-topics-part-1-individuals/(100 questions on the exam - 85 Questions are scored)


18Part 2 - Businesses

http://irsexams.school/live-course-ea-exam-review-part-2/(100 questions on the exam - 85 Questions are scored)


19Part 3 - Ethics

http://irsexams.school/live-course-ea-exam-review-part-3/(100 questions on the exam - 85 Questions are scored)


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What is the exam like?

• Computerized exam, in a testing facility full of computers, with people taking other exams.

• They provide pencil and paper. Bring nothing in with you – not even water.

• They will make special ADA arrangements, if needed.

• Calculator on computer screen – request a physical calculator

• Sample of the software running on the Prometric site if you want to see it. (It’s called SEE Tutorial – not intuitive…)

• https://www.prometric.com/en-us/clients/SEE/Assets/5-7-2013_IRS/index.htm

• NEW! you can Test Drive the exam for free (was $30)https://www.prometric.com/en-us/clients/SEE/Pages/irs-test-drive.aspx

• Exam is all multiple choice. (No T/F)

• You can mark the questions to review.

• You can see completed and incomplete questions


21Exam Samples

Non-Disclosure


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23Using the Mouse

Navigation


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Marking

Scroll Function

They added this slide to the tutorial this year.


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Calculator

Do NOT USE this feature! Request a physical calculator when you check in


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28NEW FEATURE 2015 - HIGHLIGHTING

You can thank TaxMama for this


29NEW FEATURE 2015-STRIKEOUT

You can thank TaxMama for this, too


30Questions

Reviewing Questions


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32Reviewing


33What NOT to use

Don’t use IRS’s exams from prior years (1999-2005).

https://www.irs.gov/tax-professionals/enrolled-agents/special-enrollment-examination-questions-and-official-answers

Why?

o Questions and ANSWERS are based on old tax law and have not been updated on the IRS site

o Some of the old questions ARE being used by Prometric – but Gleim and FFA and others have updated them and included them in your software

• TaxMama® Flash Card Strategy


34Interesting IRS Tool – The Tax Map https://taxmap.ntis.gov/taxmap/tmhome.htm


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Disputes and Challenges to Test Questions

Although the formal challenge process we had with IRS no longer exists, you CAN still challenge your exam if you just fail by a few points

• Submit challenge notes in 15 minute window after exam completion

• Or write to Prometric – Prometric – include your PTIN and test date

TaxMama® Challenge Strategy

• TaxMama® fights for you

• Got questions reviewed and removed from exam – and scores adjusted

• Registration problems – got Prometric to help out.

• Systemic problems – I am a thorn in the side of IRS


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What to do When You Pass

• When you pass, file Form 23, the application to become and EA with IRS - and $30

• File online or via paper - https://www.irs.gov/pub/irs-pdf/f23.pdfOnline – www.pay.gov when you pay, you also file the application. https://www.pay.gov/public/form/start/26062157/

• Note: The IRS has problems with losing online applications and payments last year. Call them 15 days after you file online! 1-855-472-554

• IRS will do a background check, primarily focusing on your tax filing and payment history.

• About 60 days later, you will get your T-card (Treasury Card…old slang).

• Have a potential problem?

• TaxMama® EA Application Strategy


37Form 23 (still 2014)


38Form 23 page 2

Do you notice what they don’t ask about?

Study Time

A common question: Do you have an estimate of number of hours to invest in preparing for the exam for someone entirely new to tax law/preparation?

• We have had people go through the whole program and pass all 3 exam parts in as little as 6 weeks (Tim)

• Some people take a few years to free up the time to study and get past personal and family problems.

• To JUST pass the exam, no education?

• With experience and training – invest at least 30 hours per exam – double for Part 2

• With only individual prep experience – invest 50 hours for Part 1, 120 hours for Part 2, and 40 hours for Part 3

• To pass the exam AND learn?

• 128 class hours over 6-7 months

• Plus at least 4 hours per week private or study buddy time

• You will end up not just passing the class – but learning to be the best tax professional ever!


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40How Long?

You need to address that to get a PTIN – so take care of this immediately!

Moving On!

• We are done with the EA Exam information

• Please stay a little while longer to learn about

TaxMama’s® EA Exam Course


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42TaxMama’s® EA Exam

Course Uniqueness

If you already know tax and only want a review – any course will do. They are ALL good – and much cheaper.

To learn tax, client management, tax strategy and how to pass the exams – AND how to make a living…

This is the only course for you .

When you need a mentor, cheerleader and advisor –TaxMama® is there for you.


43TaxMama’s® EA Exam

Review Courses

• Live Class – May through October & Self Study – Year-round• Tues and Thurs 4-6 pm Pacific – Learn Tax* – Solving the Tax Puzzle

• Saturday – 8 am – noon Pacific – Usually EA Exam Review

• There are some Saturdays when we *Learn Tax

• The TaxBook Library Online access thru 12/18 with 3 prior years’ data

• Instant Gratification – get answers during class

• Video and audio Recordings of the live sessions (i.e. the recorded course data is updated only after the live class)

• Video and audio Recordings of the live sessions

• CE available for EAs, CPAs, AFSPs• All live students who track attendance

• From Self-study sessions starting in July (approx)

• All students are invited to 2 Follow-Up classes per month (Nov – Feb), and Tax Roundtables.

• Get all materials, books and Gleim and Fast Forward Academysoftware and support, study buddies, Dropbox access which contains special resources just for you.


44TaxMama’s® EA ExamCourse Library (the Board)

We record each class. If you miss a class – don’t worry.

Before each class, you will find a PDF file of the Lecture – to print and take notes on.

Within 2 hours or less, you will have

1. The PDF of the lecture PowerPoint (generally 1 hour before class)

2. A replay of the class – you can see the class as if you had been there – but you can skip around, directly to those topics important to you.

Within 48 hours or less, you will have

1. An audio recording of the class

2. MP3 audio version, so you can also download sessions and listen on your portable players while you work out or do laundry.

3. You can replay everything as often as you wish.

In about a week or less, you will have a self-study version with Review and Final Exam questions that can provide CPE

The classes start at 5 minutes after each hour, SHARP. We might take a 5-minute break at the end of each hour.

Or not, usually - NOT. During the 4-hour Saturday sessions, we do take breaks.


45CE Credits – 80 Available!

• The live Solving the Tax Puzzle (learning) classes will provide 2 hours of CE per session for EAs, CPAs. AFSP, and those wanting voluntary CPE (you must ATTEND and ANSWER polling questions during class to get credit)

• Free to students registering and paying for the course during the current year.

• Free to paid up TaxMama Family Members

• $10 per CE hour for prior year students and those auditing the classes. (Note: prior year students can audit for free without any CPE)

• The Final Review classes – NO CE credits provided.

• The Self-Study classes? NEW! CPE starting in July


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Study Tips

• Each person has different learning styles

• TaxMama® provides tools to help you identify your own optimal learning style

• TaxMama® provides tools to help you capitalize on your learning style

• Studying with others helps keep you target

• TaxMama® provides Study Buddies and study guides

• TaxMama® points you to online study hall tools you can use for free. Some even allow you to record your sessions.

• TaxMama® provides tips on how to study together


47Armand D’Alo said

It was worth every penny. You really get comfortable that you can do this.

I had about 20 years of experience and I hate taking tests.

She also gives a LOT of practice aids.

TONS OF SUPPORT and lots of Hugs.


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Anya said

• Tax Mama Enrolled Agent IRS Exams Review Course is even more

than just a high-quality review course. First of all, it includes the most

current content covered on the SEE exam, and the materials are

integrated so that all lectures, presentations and home-tasks work

together to help you prepare in the most effective way. Secondly,

once you sign up for this course you get a FAMILY and you become an

important FAMILY MEMBER, where people around you have the

same goal as you do.

• I passed all three parts on my first try. I accomplished this with the

knowledge and support I received from the TaxMama® Enrolled

Agent IRS Exam Review. I am proud to be a member of the

TaxMama® family.


49Tim Said

Just a note to say I really enjoyed your Review course. It was a huge help to me to relearn tax since passing the CPA exam back in 2000 and then winding up doing valuations.

Awesome, awesome lectures, materials, and resources, just a wealth of great material.

I passed all three parts of the EA on first attempt over a 6-wk period, and I found the combo of your lectures/slides, FastTax, and Mike Reed's Excel review sheets were very helpful in passing.


50TaxMama® Guarantee

If you don’t pass, you stay in the class…

Until you do pass, no matter how long it takes.

You only pay for updated software or CPE, if applicable. (at this time I have negotiated free renewals for last year’s students. Earlier students will have to pay for the software.)

Note 1: we do reserve the right to eject anyone, at any time for rudeness and disruptiveness. No refunds, no sympathy. We’ve only ever done that twice in our very long history.

Note 2: Folks using installment payments who don’t make the payments will lose class privileges. Folks who need time – just tell me. Don’t ignore emails!

Warning: You lose all class privileges if you unsubscribe from the class emails.


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TaxMama’s® EA Exam Discounts

$300 off – Early Bird discount to 04/07/17

An EXTRA $100 off Register By Midnight (EDT) April 5, 2017 ET!

• http://irsexams.school/registration/

• Even more - Family Members get an additional 20% discounthttp://taxmama.com/subscribe/

• 2 or more people paying for registration at the same time – more discounts are built into the order system – up to an additional 15% -30% off!

• Bonus – The first 5 people signing up today will get the e-book version of Small Business Taxes Made Easy- with the live links to all resources!

Register TODAY –

http://irsexams.school/registration/


52Replay and Recordings

You will find handouts and the replay of today’s session in all these places within the next 24 hours

• At the school - http://irsexams.school/news-faqs/

• At TaxMama.com - http://taxmama.com/?p=12537

• In the Board/Class Library -http://irsexams.com/board/index.php?showtopic=159

• Register TODAY –http://irsexams.school/registration/