From Hero to Zero in 60 Seconds or Less
The following is a collection of anecdotes from members of the National Association of Enrolled Agents' (NAEA Ethics and Professional Conduct (EP&C) Committee. Names have been changed to preserve the confidentiality of our complainants and respondents. So...
Avoid Penalties by Doing Your Due Diligence
New Due Diligence Requirements For tax year 2020, the Consolidated Appropriations Act, 2021, allows eligible taxpayers to elect to use their 2019 earned income to figure the 2020 earned income credit (EIC) or additional child tax cred... TheTaxBook
Reasonable Reliance on a Tax Adviser as Viewed by the Tax Court
Circular 230, §10.35 Competence Enrolled agents, certified public accountants, and attorneys must demonstrate competence in their work before the Internal Revenue Service (IRS). According to Circular 230i §10.35(a), practitione... Sherrill Trovato, EA, USTCP
What Is Next?
There is light at the end of the tunnel. But the pandemic will certainly leave its mark and change how we do things in the future. The slow return to some normalcy is coming, and in some cases, is already here. Hopefully, all of you have seen friends and loved ones you have... Megan Killian
Ethics in Publishing: Cite Your Sources
“… citation, the actual process of choosing which papers to cite when writing papers, has largely escaped scrutiny. Like it or not, citations are the currency of success in science.”i Discover magazine noted th... Christine Kuglin, EA
Create Raving Fans
A tax preparer’s goal should always be to provide excellent service to every client. But going the extra mile will help you create raving fans. A “raving fan,” as developed by Ken Blanchard, is a client who has that “knock your socks off” kind of... Terry M. Judge
Stepping up Support for IRS Funding
Let’s face it, COVID-19 has broken the Internal Revenue Service (IRS) and if Congress cares about fixing it, they will need to make a substantial investment in unbreaking it. What do we mean? Well, the National Association of Enrolled Agents (NAEA) believes that merel... Jeffery S. Trinca
Due Diligence: How Do You Do It and How Much Is Enough?
When I was director of the Office of Professional Responsibility, one of the most frequent questions I received from tax professionals around the country was: "How do I know when I have done enough due diligence?" The ultimate answer: “It depends,” sho... Karen L. Hawkins
Cyber Insurance for Enrolled Agents
Enrolled agents (EAs) must have custody of client personal and financial information in order to provide the services that their clients require. Allowing some of that information to fall into the wrong hands can result in both financial and reputational harm to the...
COVID Leave Update: Voluntary Extension and Expansion of FFCRA Leave
As with any new presidential administration there is always a period of out with the old and in with the new. Many of you may have noticed the flurry of news reports regarding changes or new hires made by the new administration. If you are anything like... Christina N. Rogers
A Turning Point
I got into the tax business as a means to an end—a way to make decent money without working all year, frankly. My dad and uncle owned and operated a multilocation tax preparation business in the Los Angeles area: Pronto... Andrew Freiburghouse, EA
A Primer on Significant Sections of Circular 230 for the New Practitioner
Circular 230 imposes certain duties and restrictions upon all practitioners.i It also delineates 18 nonexclusive acts of incompetence and disreputable conduct for which a practitioner may be disciplined. If ... Karen L. Hawkins
Can You Work 15-Hour Days and Be Ethical?
Enrolled agents, and the tax community as a whole, work too much during tax season, and it puts taxpayers at a disadvantage. I know you may not want to hear this because it is contrary to your business model of jamming eight to 15 tax returns per day into your schedule, six to ...
Preparer Due Diligence Under IRC §6695(g)
Section 6695(g) was added to the Internal Revenue Code (IRC or the Code) by P.L. 105-34, the Taxpayer Relief Act of 1997. It was one of several statutory changes intended to improve earned income credit (EIC) reporting compliance. As originally enacted, the law... Patrick D. Dimmitt, EA
The Future of NAEA
This being my first column as president of the National Association of Enrolled Agents (NAEA), I want to thank you for entrusting me with this role." A little bit about how I ended up here: I am a transplant from Southern California to New Jersey. My first career wa... David Tolleth, EA