This is a result that was NEVER contemplated by Circular 230…SEE passed – check…..Education – NIL…Experience…NIL…the IRS would NEVER let this monster conduct an audit with NO ACCOUNTING background, and you don’t want @FrankENrolledAgent representing you either. To be fair there are quite a few competent EA’s that have gotten the accounting education and experience that they need to meet the hiring criteria to be an IRS Revenue Agent – Grade 5, Series 0512 which is THIRTY HOURS OF ACCOUNTING COURSES OR A CPA Certificate. Guys and gals you aren’t mentally retarded right? I know it isn’t PC but I need to ask. So assuming you aren’t and the accounting requirement makes sense so lets raise the floor and while we have hole open lets bury the ZOMBIES…since its going to take a bit of time to amend the law how about we amend the dictionary instead.
Here is a CPA that takes the topic on head on Joe Mastriano CPA at http://www.taxproblem.org/why-us/
Here is part of his pitch
I will make 3 important points, and then go on to exposing misleading claims from companies that are not licensed CPA Firms.
First point: The knowledge required to effectively resolve IRS Problems is very specific, but it doesn’t require the person with most impressive list of credentials. So an ex-IRS Attorney or auditor with 25 years of service with the IRS may not know exactly how the collection division works.
- They may not know the new procedures currently followed by the audit or other divisions.
- Solving IRS problems requires specific up to date knowledge.
- The knowledge is gained from working many cases similar to yours.
- WE have that knowledge!
Second point: It’s important to choose the right company that has specific knowledge.
- I strongly urge you to only consider a law firm or CPA firm professionally licensed by the state they are in.
- When the Firm is policed by their professional state board, only then do you have the highest level of assurance of quality ethical work.
- We are a licensed professional CPA firm.
Third Point: Over the past 10 years many non-professionally licensed companies have sprung up all over the country creating, a bad name for companies who specialize in IRS representation. People, out of their desperate need for tax resolution, forget that a CPA who specializes in IRS representation is a CPA first with all the responsibility and integrity that CPA’s are known for. You must be aware of the gimmicks used by these New Kids on the Block.
The Better Business Bureau – Scam
- I know companies that plaster their BBB rating all over their web site pages! They mislead consumers into believing that because they have a high rating, the BBB has approved their company.
- A high better business bureau rating means that a company has consistently followed their policies concerning customer service. I know a competitor with an A+ rating who makes aggressive attempts at resolving customer complaints. However, I have read several internet complaints concerning their poor quality work.
- The BBB has made attempts to educate consumers so that they understand that the rating is for customer service, and in no way are they vouching for the quality of work, integrity, or licensing of the company.
- Customer service is important, but if you stop there when considering who to hire, you will be a victim of poor quality, and inexperienced representation. I know I get phone calls from people complaining that they trusted the rating, and are now very disappointed at the results of the service.
- Another scam is that I’ve seen is when, people involved in companies with poor ratings simply start a new company. The new company is immediately assigned a high rating. After a few years when they destroy that rating, they start the process again.
- That is why I say you should only consider the ratings of companies in business for at least 10 years so you know it’s not a new company. Also don’t rely on the BBB listing of the company for the number of years in business. I have reason to suspect competitors have lied to the BBB about the length of time in business. The BBB has been accused of skipping verification of this information.
Flat Fee, Money back Guarantee, Guaranteed Tax reduction – Scam
- Over the years I’ve watched companies come and go in this business. Each, tries to appeal to what the consumer wants just to get their business. Their marketing group will study consumer behavior and realize that many people are scared and don’t trust their own judgment when selecting a representation firm. They find out that people are also afraid of being overcharged.
- So, they come up with a flat fee arrangement. But flat fees don’t work for representation cases. I will tell you that I have personally spoken to many people over the years who have been given flat fees. They fall into two categories.
- They were overcharged.
- They were under quoted and the case was rushed and the client suffered.
Why put in time and effort to go the extra mile for your customer if you are not getting paid for it?
I’ve found that money back guarantees either have fine print clauses that make it ineffective, or they are used by companies who are new to the business, or training clerks to do professional work. If their trainee makes a mistake, then they offer to give you some money back. The problem with that is that the damage done often costs you more money than the money returned. Especially after you have to contact the company several times to make a formal claim.
Penalty removals are usually automatic or very hard to get. It is totally at the discretion of the IRS. I have heard many stories from consumers who paid good money to representatives based on a guarantee of lowering taxes, only to be discouraged when they were told …”sorry the IRS just didn’t want to do their job and grant it to you!”
We have been very effective at reducing taxes for our clients, but only when they really qualified for it in the first place.
We are the best, most experienced, largest IRS representation firm – Scam
There is no accredited or accepted rating service for companies that perform IRS representation. When you think about it, how can anyone know who is the best, or the most experienced or the largest? It makes no sense.
And how do you decide if a company should be considered? I know some large national CPA firms who do a decent volume of IRS representation for their wealthy clients. They don’t directly advertise that they do IRS representation. Are they considered in the comparison? I’ll bet they are larger, better, and more experienced than any of those representation companies you see on a list of the so called top firms in the industry.
We all like to think that we have a certain level of common sense and try not to do stupid things. This is particularly true when those things can get us killed or cause us to suffer significant damage. Ok so there aren’t too many of out there that want to be a gunfighter.
Let try something a bit closer to home. Let assume you have been an RTRP preparing tax returns for three or four years, make doing some QBOnline bookkeeping. Finally things are starting to come together. You manage to finish your Associates Degree in accounting. Here is what took so we have it handy for reference;
You got the AAS with 23 hours of accounting course.[Note the Excel and the Careers class probably don’t count toward sitting for the CPA exam.] Next thing you know you pass the last part of the Special Enrollment Exam., the background check is done and now you are an EA. Congratulations that truly is an accomplishment. After you are done celebrating you decide to see what kind of a job you can get.
The IRS has a bunch of locations around you so you decide to check out the jobs there. One of the most common starting jobs is as a Revenue Agent. The Revenue is front line of the IRS and you passed the SEE so the be welcoming right.
Nope….the nice lady points to a sign and it says that entry level Revenue Agents need a bachelors’ degree, and 30 hours of accounting courses, or of those CPA thingies.You ask what the hell is going on…I thought that EA’s were America’s Tax Experts, that sign all of ads say. Well they lied. The nice lady points to a sign:
You read the sign a dozen time ….the IRS and the NAEA keep telling us that we are America’s Tax Experts but we are not good enough for America’s tax agency. Nope that is NOT what they said. They said “accounting, accounting, accounting…..CPA exam. Many EA’s are absolutely sharp and do their jobs well. They need to get the accounting hours and computer science hours to protect their careers.
Ok…I am here and still need a job. You ask the nice lady..what jobs are open at the IRS to new EA with AAS? She says lots of them….Mail Clerk, File Clerk, Administrative Assistant, and Custodian. Wow….that just SUCKS!!! The lady points to another sign:
Sure enough I did not make this stuff up there you have it in Black and White. The IRS considers EA’s without a bachelor’s degree to be, says it CLERICAL AND ADMIN, NOT PROFESSIONALS. The IRS decided not me.
Further if you are an EA that wants to be a Revenue Agent get the books and start studying.
Well what do you guys think….I didn’t put the outline together to abuse all of you it took time. Go ahead and read through the outline and see what else you don’t know. There is a whole bunch of stuff in the outline that your organization isn’t talking much about. I can’t tell anyone what to do, but, I am always willing to have the conversation.
There is more than one way to skin a cat. I will follow up with a formal letter resigning my Associate Membership in NAEA. I expect some may not be very pleased with the way I say something. However, anyone that knows me can tell you about my commitment to my chosen profession. I see conditions at NAEA that starting to cause it rot from the inside like a cancer. By the time it pokes a hole to the outside its going to be to late. The keys that you won’t survive without are:
- Accounting, accounting, accounting,
- Technology Skills
- Broad Based Business Skills
- Formal Education – An MST is the Key, Lack of a BS Will Suck You Back Into the RTRP Muck
- CPA Certificates Are Good
- IRS Is Fully On Board With The Program – Don’t Listen to Me Look At Their Own Slides
- Without Augmentation To Your Education IRS Don’t View You As Any More Than a Clerk
- The deck is a work in progress PLEASE, PLEASE. PLEASE comment, like us, follow us
the sign say “skilled professionals”…so it must be those Enrolled Agent again…right…nope the entire page is talk about accounting classes and they are right they a good thing. In fact…next time you see the person that does your taxes pull the page out and ask them to show you which accounting classes they took.
Its a big FAT lie……they aren’t America’s Tax Experts…..how do I know that, Shhh…I got an inside tip.. Whatcha mean…..well if you want a good Chinese restaurant where do you go……easy to the place that is full of Chinese people.
So if I get audited I want Chinese dude? No you idiot..shut up and watch. The IRS Bamboozled the taxpayers. The are trying to brain wash us…the Enrolled Agent tell us “its the highest credential the IRS issues” WELL DOH ITS THE ONLY CREDENTIAL THE IRS ISSUES..NICE PLAY ON WORDS. ……THEY SAY…..Enrolled agents’ expertise in the continually changing field of taxation enables them to effectively represent taxpayers at all administrative levels within the IRS.
What they mean is just like Harpo used to say I don’t want to be a member of any club that would have we used to say. WHAT THE HELL ARE YOU TALKING ABOUT??
Yep….the IRS sold the taxpayer a bill of goods…no education requirements and a test.Guess what that what require for person going to represent you. What about there guy. Well….they’s assistant, an ENTRY LEVEL Revenue Agent is required to have…come on say it..a Bachelor’s Degree…say it again…a Bachelor’s Degree so show me what the entry level guy needs to have
What else does it say….it says CERTIFICATE…CERTIFICATE is what is say…what kind of a CERTIFICATE……a CPA certificate….wait a minute…if the EAs are Americas Tax Experts why is the IRS interested in folks with CPA certificates…simple they know that CPA means better skills, more capable of dealing with complex problems. Ok…now we have seen their guy and his assistant and they have stuff like accounting degrees and CPA certificates…and it doesn’t say Enrolled Agent anywhere does it? Nope..say it again…..nope.
What else did you learn….the IRS knows that deal thats why they hire people with accounting degree and CPA certificates and graduate degrees.
Don’t some Enrolled Agent have Bachelors and Master’s degree. YEP THEY SURE DO…AND GET FOR THE SAME REASON THAT EVERYONE ELSE GETS THEMS.
More education makes you better and what you do..its logical. Ok then..tell me something WHY WHEN JUST ABOUT ALL OF THE ENROLLED AGENTS HAVE GOOD SKILLS DO THEY INSIST ON BULLSHITTING US ABOUT MYTH OF THE SHORT SWORD.
I don’t know you are gonna have to ask and Enrolled Agent.