Welcome to TaxMama s Place -Home of the

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1 1 Welcome to TaxMama s Place -Home of the Today s Topic: Everything you Ever Wanted to Know about the EA Exam but Didn t Know Who to Ask

2 Table of Contents 2 1. What is an Enrolled Agent? 2. Who qualifies to sit for the exam and Pre-requisites needed to pass the exam 3. Registering 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

3 What is an Enrolled Agent? 3 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).

4 Who Qualifies for the Exam? 4 Education Age Citizenship/Residence Compliance PTIN

5 PTIN Registration 5 Mandatory for ALL paid tax preparers You must get a PTIN You cannot schedule an exam date without it Sign up online in minutes or on paper it takes weeks - New PTIN Fee $-0- per year (was $64.25) Renewal Fee $-0- per year (down from $63) Note: The PTIN database now allows you to see your completed (and posted) CE from all providers (and more). Simply log in and follow instructions.

6 RTRPs and AFSP 6 The mandatory RTRP (Registered Tax Return Preparers) designation ended. The IRS lost the lawsuit and did not appeal (Loving v IRS 49/$file/ pdf ). Why I am telling you about the RTRP? Because even though it has been replaced by the AFSP RTRPs still have special privileges. The replacement? A VOLUNTARY program called the Annual Filing Season Program (AFSP) which provides a Record of Completion.

7 The AFSP 7 To qualify, you must get 18 hours of continuing education, including: a 6 hour federal tax update course AND pass a 100 Question Exam EACH YEAR! PLUS take an additional 12 hours continuing education annually. 2 hours of Ethics courses 10 hours of federal tax courses For former RTRPs, the IRS gives you a special privilege for the AFSP education requirements. No 6-hour course, no annual 100 question exam and only 15 hours CPE 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 keep up with the continuing education.

8 A Word from our Sponsor 8 TaxMama s EA Exam Review Register ASAP to get your class materials in time Live class starts on May 4th TaxMama Family Members get an additional 20% discount through April 7, 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, address and mailing address of each person in the comment box or by . Register TODAY Special discount - $100 We ll give you the code at the end

9 Registering for the Exam 9 Set up your account with the Prometric by going to Prometric.com/see You used to be able to fax Form 2587 to them but they don t want you to do that anymore. Everything is now online Goal: Set up your Prometric account TODAY! (free to set up) Do not schedule your class until you are ready to sit for the exam. Let me repeat when we finish today s webinar log in at Prometric and set up you account with them TODAY! Prometric.com/see

10 Form 2587 Application for the EA Exam 10 Although you will not use this paper form, you will provide this information to the IRS when you set up your account at Prometric.com/see

11 Registering & Scheduling 11 How do I schedule an appointment to take the examination? Easiest You can schedule an examination appointment online at Prometric.com/see. or call a.m. and 9 p.m. to schedule and pay The fee is paid at the time of appointment scheduling. MasterCard, Visa, American Express and Electronic checks. Money orders, paper checks and cash are not accepted. Cost = $ per exam When you schedule online you will receive an appointment confirmation containing the appointment date, time, location, examination name, and confirmation number. Review the confirmation immediately for accuracy and, if an error occurred, notify Prometric at Monday through Friday between 8:00 a.m. and 9:00 p.m (Eastern time)

12 Disabilities 12 If you require testing accommodations such as for disabilities, please call Prometric prior to scheduling your appointment at between 8 a.m. and 6 p.m. (ET), Monday through Friday, to obtain an accommodation request form. Definitely do this in advance to make arrangements. The only have a couple of private exam areas and those fill up quickly

13 Exam Logistics 13 When: You'll be able to take each Part of the exam FOUR times during the 2019 window, from May 1, 2019 to February 28, Locations: The exam is offered in major metropolitan areas in the U.S. (and some outside the U.S.), 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: $ for each part of the examination = $ 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 Problems (Shhh ) Register at Prometric - Candidate Information Bulletin -

14 NEWS! What the Exam Covers 14 In May and June the exam will be last year s exam covering tax laws for 2017 tax return Starting in July February, the exam will cover the 2018 tax laws, as passed by December 31, 2018

15 Scoring, Passing, Re-testing, 15 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 ) 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

16 Score Report 16

17 Retention of Passed Exams 17 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, You have until May 15, 2020 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!

18 Passing Rates 18 Scores have improved dramatically since However, in the last three years, scores are dropping. They are lower than they were in for Part 1. Looking at scores in the summer (after tax season): Average passage rates for folks taking Part 1 in 2018 is about 68% (just a little higher than last year). Average passage for folks taking Part 2 was about 68% in 2018 slightly better than the last two years Average passage rates of folks taking Part 3 is a little above 85% in This average score holds steady.

19 Average Passing Rate Chart 19 On the whole, people are doing worse on Part 1 and Part 2 but doing better on Part 3

20 What s in the Exam? 20 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!

21 List of Topics and their Weight in overall exam 21 Prometric Topic List for each exam in May and June 2019: Part 1 Individuals m_content_see_part1.pdf Part 2 Businesses, Entities and Specialized Returns m_content_see_part2.pdf Part 3 Representation and Procedures m_content_see_part3.pdf Prometric Topic List for each exam in July February 2020: Part 1 Individuals ontent_see_part1_2.pdf Part 2 Businesses, Entities and Specialized Returns ontent_see_part2_2.pdf Part 3 Representation and Procedures ontent_see_part3_2.pdf

22 Part 1 - Individuals 22 (100 questions on the exam - 85 Questions are scored)

23 Part 2 - Businesses 23 (100 questions on the exam - 85 Questions are scored)

24 Part 3 - Ethics 24 (100 questions on the exam - 85 Questions are scored)

25 What is the exam like? 25 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 ) NEW! You can visit the site and Test Drive the exam for free (was $30) Exam is all multiple choice. (No T/F) You can mark the questions to review. You can see completed and incomplete questions

26 Exam Demo Key Pages 26

27 Non-Disclosure 27

28 Overview 28

29 Navigating 29

30 Answering Questions 30

31 Calculator 31 Do NOT USE this feature! Request a physical calculator when you check in

32 NEW FEATURE ADDED IN HIGHLIGHTING You can thank TaxMama for this 32

33 NEW FEATURE ADDED IN STRIKEOUT You can thank TaxMama for this, too

34 Questions 34

35 Reviewing Questions 35

36 Finishing Up 36

37 Updated Resource 37 The IRS removed the questions from the exams from this page Instead, they added some useful CURRENT information Key words, abbreviations, and definitions Sample questions TaxMama Flash Card Strategy

38 Interesting IRS Tool The Tax Map 38

39 Disputes and Challenges to Test Questions 39 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 include your PTIN and test date

40 TaxMama Challenge Strategy 40 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

41 What to do When You Pass 41 When you pass, file Form 23, the application to become and EA with IRS - and $30 File online or via paper - Online when you pay, you also file the application. Note: The IRS has problems with losing online applications and payments last year. Call them 15 days after you file online! 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

42 How Long? 42 You need to address that to get a PTIN so take care of this immediately!

43 Form 23 (2018) 43

44 Form 23 page 2 Do you notice what they don t ask about? 44

45 Study Time in General 45 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 known people to go through the whole program and pass all 3 exam parts in as little as 6 weeks (Tim) or three weeks with other tools (Ishaan) Some people take a few years to free up the time to study and get past health, personal, family and work problems. (But we re here when you re ready.) 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 + 72 hours of final reviews 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! (see what Bradshaw Squires just said yesterday!)

46 Bradshaw Squires just got his EA Certificate yesterday 46

47 Moving On! 47 We are done with the EA Exam information Please stay a little while longer to learn about TaxMama s EA Exam Course AND To get a $100 discount code!

48 TaxMama s EA Exam Course Uniqueness 48 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 AND to get answers to your client and practice questions This is the only course for you. When you need a mentor, cheerleader and advisor TaxMama is there for you.

49 TaxMama s EA Exam Review Premium Course Benefits 49 Live Class May through October 2019 & 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 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) Most webinar services charge you separate fees for access to videos and audios! You stay in the class until you pass and beyond, if you like CE available for EAs, CPAs, AFSPs All live students who track attendance Opportunity to get Self-Study CE for an additional price

50 Videos and Audios 50

51 And there s MORE! 51 All students are invited to 2 Follow-Up classes per month (Nov Feb), and monthly Tax Roundtables which are for ANY questions. INCLUDED! All materials, books and software Gleim Fast Forward Academy Appitur The TaxBook Library Online access thru 12/1/20 with 3 prior years data Connect with study buddies, Dropbox access which contains special resources just for you.

52 TaxMama s EA ExamCourse Library (the Board) Study On-Demand (no CE) 52 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. 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 and replay them as often as you like. 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.

53 UNIQUE - CE Credits Provided 53 This is the only EA Prep course to provide you will all the CE you need for your AFSP (if you pass Part 1) or to keep your EA updated. The live Solving the Tax Puzzle (learning) classes will provide 2 hours of CE per session for EAs, CPAs, and AFSP. (up to 80 hours) You must ATTEND and ANSWER polling questions during class to get credit Live CPE is Free to students registering and paying for the course during the current year. Free to all 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 CE) The Self-Study classes? Included in the course, with no CE. Federal ethics 4 hours are included in the live Part 3 classes Federal Tax Update we will include at least 3 hours this year

54 NEW! Self-Study CPE 54 Providing Self-Study CPE is a lot more complicated. It means creating review questions, final exam questions, glossary information, and an automated testing system and involves closer oversight from NASBA and the IRS. The system will automatically give you a CPE certificate when you complete each individual course. This is a separate enrollment into a separate system. The price is $750 to the public SPECIAL FOR STUDENTS ALREADY ENROLLED IN THE PREMIUM CLASS Only $100 - $250 per part

55 Study Tips 55 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

56 56 TESTIMONIALS

57 Armand D Alo said 57 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.

58 Geri Ferger, EA said 58 I think what makes this course special is the class part, that sets the concepts in. The slides are invaluable for going back to also. I will definitely be joining the TaxMama family when I am done. You know the saying it takes a village, well the class, the study buddies, the information available on the site, and the knowledge base in your TaxMama group, has been invaluable in helping me gain knowledge and direction for my tax business. From the tips to your past experiences and passing that on to us. It is a great education. Thanks again this has been the best money I have ever spent on my business.

59 Tim Said 59 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.

60 TaxMama Heart-Felt Guarantee 60 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 CE, if applicable. IF you want it remember FFA and Appitur renew for free. (at this time I have negotiated free Gleim renewals for last year s students. Earlier students will have to pay for the software.) Disclaimers and Disclosures: 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 s! Warning: You lose all class privileges if you unsubscribe from the class s.

61 TaxMama s EA Exam Lots of Discounts!! 61 $300 off Early Bird discount to 04/07/19 An EXTRA $100 off Register By Midnight (EDT) March 16, 2019 ET! SPECIAL - Family Members get an additional 20% discount (drops to 15% on April 7, 2019) 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 1 The first 2 people signing up today (March 15), after this class will get a set of the audio CDs of Small Business Taxes Made Easy. Bonus 2 - The first 5 people signing up today (March 15), after this class, will get the 2 Trump Tax video courses with 4 federal tax update CEs Register TODAY Special discount - $100 Discount code: Eva100

62 Replay and Recordings 62 You will find handouts and the replay of today s session in all these places within the next 24 hours On the main website- At TaxMama.com - In the Board/Class Library - Register TODAY Special discount - $100 - good through March 16th Discount code: Eva100