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 Were Afraid 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 Being an EA is WONDERFUL!! 4 There are so many good things about being an Enrolled Agent, that I have recorded an entire hour worth of benefits and ways to use the skills you develop on the way to becoming an EA. Free webinar at Canopy Tax Though the webinar is over, scroll down on that page to download the slides.

5 Who Qualifies for the Exam? 5 Education Age Citizenship/Residence Compliance PTIN

6 PTIN Registration 6 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. Simply log in and follow instructions.

7 RTRPs and AFSP 7 The mandatory RTRP (Registered Tax Return Preparers) designation ended. The IRS lost the lawsuit and will not be appealing (Loving v IRS ). 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. To qualify, you must take a 6 hour course AND pass a 100 question exam EACH YEAR! PLUS take an additional 12 hours continuing education annually. * 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 5th TaxMama Family Members get an additional 20% discount through April 18, 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 & Scheduling 9 How do I schedule an appointment to take the examination? (updated 3/1/18) Easiest You can schedule an examination appointment at Prometric.com/see. You can fax Form to , then, after 24 hours you can either: log on to or call , to schedule and pay 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. The fee is paid at the time of appointment scheduling. MasterCard, Visa, and American Express and E-checks are accepted. Cost = $ per exam (was $111.94) 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)

10 Form 2587 Application for the EA Exam 10 Aaahhh! The IRS updated this form after our March session.

11 Exam Logistics 11 When: You'll be able to take each Part of the exam FOUR times during the 2018 window, from May 1, 2018 to February 28, Locations: The exam is offered in hundreds of 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: $ 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 - (scroll to bottom of the page.

12 Scoring, Passing, Re-testing, 12 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

13 Score Report 13

14 Understanding Diagnostics 14

15 Retention of Passed Exams 15 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!

16 Passing Rates 16 Scores have improved dramatically since However, the and scores 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 2017 is about 68% (down from 80% in 2015). Average passage for folks taking Part 2 was about 65%-68% in similar to the previous year. Average passage rates of folks taking Part 3 is a little above 88% in This average score holds steady.

17 Average Passing Rate Chart 17 On the whole, people are doing worse on Part 1 and Part 2 but doing better on Part 3

18 What the Exam Covers 18

19 Content of the Exam? 19 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!

20 List of Topics and their Weight in overall exam 20 IRS topic and publication list separate by exam Prometric Topic List for each exam: Part 1 Individuals Part 2 Businesses, Entities and Specialized Returns Part 3 Representation and Procedures

21 Part 1 - Individuals 21 (100 questions on the exam - 85 Questions are scored)

22 Part 2 - Businesses 22 (100 questions on the exam - 85 Questions are scored)

23 Part 3 - Ethics 23 (100 questions on the exam - 85 Questions are scored)

24 What is the exam like? 24 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 ) _IRS/index.htm NEW! you can 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

25 Exam Demo Key Pages 25

26 Non-Disclosure 26

27 Marking 27

28 Calculator 28 Do NOT USE this feature! Request a physical calculator when you check in

29 NEW FEATURE HIGHLIGHTING 29 You can thank TaxMama for this

30 NEW FEATURE IN 2015-STRIKEOUT 30 You can thank TaxMama for this, too

31 Questions 31

32 Reviewing Questions 32

33 Reviewing 33

34 What NOT to use 34 Don t use IRS s exams from prior years ( ). 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

35 Interesting IRS Tool The Tax Map 35

36 Disputes and Challenges to Test Questions 36 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

37 What to do When You Pass 37 When you pass, file Form 23, the application to become and EA with IRS -and $30 File online or via paper - Online 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

38 How Long? 38 You need to address that to get a PTIN so take care of this immediately!

39 Form 23 (2017) 39

40 Form 23 page 2 Do you notice what they don t ask about? 40

41 Study Time in General 41 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!

42 Moving On! 42 We are done with the EA Exam information Please stay a little while longer to learn about TaxMama s EA Exam Course and get a $100 discount code!

43 TaxMama s EA Exam Course Uniqueness 43 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.

44 TaxMama s EA Exam Review Course Benefits 44 Live Class May through September 2018 & 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 12/1/19 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) Note: most webinar services charge you extra for access to videos! 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 All students are invited to 2 Follow-Up classes per month (Oct Feb), and monthly Tax Roundtables which are for ANY questions. You get all materials, books and Gleim and Fast Forward Academy software and support, study buddies, Dropbox access which contains special resources just for you.

45 TaxMama s EA ExamCourse Library (the Board) Study On-Demand 45 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. In about a week or two, you will have a self-study version with Review and Final Exam questions that can provide CPE for an additional charge per course 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.

46 UNIQUE - CE Credits Provided 46 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 3 hours this year

47 NEW! Self-Study CPE 47 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 the course. This is a separate enrollment into a separate system. ONLY FOR OUR STUDENTS ALREADY ENROLLED The extra cost for Self-Study CPE will be $100 each for Part 1 and Part 3 (approx 24 hours each), $250 for Part 2 (approx 36 hours) or $400 for all three parts hours

48 Study Tips 48 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

49 Armand D Alo said 49 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.

50 Debbie said 50 Eva, I wanted to thank you for all of the help you have been and I must say that you are undoubtedly the Best Bargain Ever for tax courses and assistance. All EA prep courses will come with books and questions, but no other course offers the TaxMama Family and resources, including your invaluable classes and tips, study buddies, unlimited lifetime access, CE, and the ability to have your questions answered, just to name a few benefits. Since passing the exams all 3 on the first try, thanks to your classes I have joined other Professional Tax Organizations. The memberships and the CE is more expensive than yours, and they will only answer one free tax question. After that, it is a minimum of $33 per question. With all of my questions, I would quickly be at thousands of dollars. You are an invaluable Treasure, and I happily join the TaxMama Family every year! You re the exception to you get what you pay for. With TaxMama, you get so much more, for so much less! I don t know why anyone would go anywhere else. All my best Debbie Watson, EA

51 Tim Said 51 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.

52 TaxMama Guarantee 52 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. (at this time I have negotiated free Gleim 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 s! Warning: You lose all class privileges if you unsubscribe from the class s.

53 TaxMama s EA Exam Lots of Discounts 53 $300 off Early Bird discount to 04/07/18 An EXTRA $100 off Register By Midnight (EDT) April 7, 2018 ET! SPECIAL - Family Members get an additional 20% discount (drops to 15% on April 18, 2018) 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 after today s class will get a set of the audio CDs of Small Business Taxes Made Easy. Bonus 2 - The first 5 people signing up after today s class will get the Trump Tax video course with 2 federal tax update CEs Register TODAY Special discount - $100 Discount code: Eva100

54 Replay and Recordings 54 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 17th Discount code: Eva100