P-2 Practice before the IRS(Enrollement Process and Maintaining Enrollment) Flashcards
What form must applicants use to apply to take the special enrollment exam (can be filled in by testing centers)?
Form 2587 (special enrollment examination form).
Individuals, who have passed the examination or are applying based on past service and technical experience with the IRS, may apply for enrollment by filing which form? Where can it be filed?
Form 23, Application for Enrollment to Practice before the Internal Revenue Service.
This form can be filed online at pay.gov
What the enrollment cycle for an enrolled agent?
There is three-year enrollment cycle to EA must follow.
How many hours of CPE must an Enrolled Agent complete annually?
The IRS requires an EA to complete a minimum of 16 hours of CPE annually, and at least 2 hours (of the 16-hour minimum requirement) must be for ethics or professional conduct. The IRS also requires an EA to complete a total requirement of 72 hours for the three-year enrollment cycle. The annual 16-hour minimum counts towards the total requirement for the three-year cycle but is not enough hours to satisfy the 72-hour requirement. The continuing education requirements are pro-rated if enrollment occurs in the middle of an enrollment cycle, at a rate of two hours of required education for each month or part of a month enrolled.
What is a contact hour?
All continuing education programs are measured in terms of contact hours. A contact hour is 50 minutes of continuous participation in a program. The IRS only grants credit for a full-contact hour, i.e., 50 minutes or multiples thereof.
How long should records of CPE be retained for?
Records of CPE should be retained for four years following the date of renewal.
What is the definition of enrollment cycle per Treasury Circular 230?
The definition of enrollment cycle per Treasury Circular 230 is three successive enrollment years preceding the effective date of renewal.
How many hours of qualified continuing education must an individual who receives his initial enrollment to practice during an enrollment cycle complete for each month he is enrolled during that enrollment year?
The enrolled agent must complete two hour a month in the initial year of becoming an enrolled agent.
When does the IRS process Enrolled Agent applications for renewals? When is the effective date of renewal?
The IRS only processes application for renewal between November 1st and January 31st. The effective date of renewal is the first day of the fourth month following the close of the period for renewal.
Can excess hours of ethics count towards other categories of CPE credits?
No, Excess hours in ethics and federal tax law cannot be counted toward other categories.
A minimum of 16 hours of continuing education credit, including two hours of ethics or professional conduct, must be completed during each enrollment year of an enrollment cycle.
What is an enrolled agent?
An enrolled agent is a tax professional, who has demonstrated special competence in tax matters, applied for enrollment, and has been issued an enrollment card.
