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08/Jun/2022

What is networking?

In business, networking is the act of maintaining a personal and professional contact list that you can use to help further your career. Your network is made up of all the people you interact with, all of whom could potentially offer you valuable professional assistance or guidance. To create and maintain a beneficial network, you must intentionally seek out opportunities to grow and expand your network. Your network can consist of a variety of people, including:

  • Coworkers
  • Family
  • Friends
  • Professors or fellow students
  • Professionals in your field
  • Clients or customers
  • Personal acquaintances
  • People you see at your church, gym or other local community centers

There are potential contacts everywhere, and making the most of connections like these can be significantly beneficial for your career. Intentionally broadening and maintaining your network is one of the most important steps you can take to increase your chances of professional success.

 

Why is networking important?

Networking allows you access to opportunities you might not be able to find on your own. Your network has the potential to provide you with insight into different fields, information on what potential employers look for and advice on how you can improve professionally. If you are willing to form and maintain the relationship, a single contact could get you into meetings or interviews with several companies without you having to work to form connections at each one.

Effective networking can save you time, effort and stress, so knowing how to use it effectively can be a powerful tool for your professional development.

 

June 2022 Tax Convention

Our June 2022 Tax Convention provides an excellent networking event for tax preparers to connect with people and gain continuing education credits. Join us for the opportunity to network with EAs wanting to reduce their client load with EAs wanting to increase their business. Meeting professionals going through the same

 

Why Join TxSEA?

TxSEA makes it easy for enrolled agents in Texas to stay on top of the credits they need to maintain their licensing, as well as provides networking opportunities with other EAs in their local area. This can provide helpful information and lead to tax professionals working as enrolled agents today.

 

Texas Society of Enrolled Agents
https://txsea.org/
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29/May/2022

Many tax preparers throughout the United States are choosing not to work with clients that use bitcoin and other cryptocurrencies. The problem with making this choice for your practice is that these digital currencies are becoming more and more prevalent, without any sign of going away. TxSEA urges all members to stay up-to-date with virtual currencies and learn how to work with and accept clients that work with these forms of currency.

 

Crypto Tax Guide

Transactions that result in a tax are called taxable events. Those that don’t are called non-taxable events. Let’s break them down:

Not taxable 

Buying crypto with cash and holding it: Just buying and owning crypto isn’t taxable on its own. The tax is often incurred later on when you sell, and its gains are “realized.”

Donating crypto to a qualified tax-exempt charity or non-profit: If you give crypto directly to a 501(c)(3) charitable organization, like GiveCrypto.org, you may be able to claim a charitable deduction.

Receiving a gift: If you’re lucky enough to get crypto as a gift, you’re not likely to incur a tax until you sell or participate in another taxable activity like staking.

Giving a gift: How thoughtful! You can gift up to $15,000 per recipient per year without paying taxes (and higher amounts to spouses). If your gift exceeds $15,000 per recipient, you’ll need to file a gift tax return (which generally does not result in any current tax liability). If you transfer crypto to someone else outside of a purchase for goods or services, it may count as a gift, even if you didn’t mean it that way.

Transferring crypto to yourself: Transferring crypto between wallets or accounts you own isn’t taxable. You can transfer over your original cost basis and date acquired to continue tracking your potential tax impact for when you eventually sell.

 

Taxable as capital gains

Selling crypto for cash: Did you sell your crypto for U.S. dollars? You’ll owe taxes if you sell your assets for more than you paid for them. If you sell at a loss, you may be able to deduct that loss on your taxes.

Converting one crypto to another: When you use bitcoin to buy ether, for example, you technically have to sell your bitcoin before you buy a new asset. Because this is a sale, the IRS considers it taxable. You’ll owe taxes if you sold your bitcoin for more than you paid for it.

Spending crypto on goods and services: If you use bitcoin to buy a pizza, for example, you’ll likely owe taxes on the transaction. To the IRS, spending crypto isn’t that much different from selling it. You need to sell the asset before it can be exchanged for a good or service, and selling crypto makes it subject to capital gains taxes.

 

Taxable as income

Getting paid in crypto: NFL offensive tackle Russell Okung was one of a few big names to take their paychecks in bitcoin in 2021 — and he’s likely paying income tax on it. If you followed Okung’s lead and were paid in crypto by an employer, your crypto will be taxed as compensation according to your income tax bracket.

Getting crypto in exchange for goods or services: If you accept crypto in payment for a good or service, you’re responsible for reporting it as income to the IRS.

Mining crypto: If you mined crypto, you’ll likely owe taxes on your earnings based on the fair market value (often the price) of the mined coins at the time they were received. Crypto mined as a business is taxed as self-employment income.

Earning staking rewards: Staking rewards are treated like mining proceeds: taxes are based on the fair market value of your rewards on the day you received them.

Earning other income: You might earn a return by holding certain cryptocurrencies. This is considered taxable income. Although this is sometimes referred to as interest, the IRS treats it differently than interest you’d earn from a bank.

Getting crypto from a hard fork: Taxes on crypto you got from a hard fork depend on how you use the asset, when it’s available to withdraw from your exchange, and more. See the latest IRS guidance on hard forks

Getting an airdrop: You might receive airdrops from a crypto company as part of a marketing campaign or giveaway. Getting an airdrop is taxable as income, and you’ll need to report the amount in your taxes. See the latest IRS guidance on airdrops

Receiving other incentives or rewards: This list isn’t comprehensive — there are a variety of reasons why you might receive free crypto. These can include rewards from Coinbase Earn or incentives like getting $5 in bitcoin for referring a friend to a crypto exchange. Regardless, you’ll need to report these as income.

 

June 2022 Tax Convention

Cryptocurrency is finding its way into our daily lives and in homes all across America. Guest speaker, Tynisa (Ty) Gaines EA, B.S., M.P.A., has 20 years’ tax experience and currently oversees the operations for Token Tax, a cryptocurrency start-up firm. Join us at our June 2022 Tax Convention to learn more about how to address cryptocurrency in your practice.

 

Why Join TxSEA?

TxSEA makes it easy for enrolled agents in Texas to stay on top of the credits they need to maintain their licensing, as well as provides an opportunity for networking with other EAs in their local area. This can provide helpful information and lead to tax professionals working as enrolled agents today.

 

Texas Society of Enrolled Agents
https://txsea.org/
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22/May/2022

A Taxpayer Advocate will review your client issue in a sit-down 30-minute session and try and resolve. Typically TAS deals with Financial Hardship, IRS System Issue & Fair & Equitable Treatment issues. They added TY 2020 returns filed before 01-01-22 that had refunds stopped until income documents could be verified and returns filed before 6-1-2021 that are still unprocessed. Make your appointment now – 1st come 1st serve. Only 12-30 minutes slots available Thursday morning and afternoon.

 

June 2022 Convention

Why Join TxSEA?

TxSEA makes it easy for enrolled agents in Texas to stay on top of the credits they need to maintain their licensing, as well as provides an opportunity for networking with other EAs in their local area. This can provide helpful information and lead to tax professionals working as enrolled agents today.

 

Texas Society of Enrolled Agents
https://txsea.org/
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17/May/2022

With our 2022 Convention coming up, we want to remind you of some of the amazing benefits that come with joing us on June 11th! Not only will you have an excellent opportunity to network with other EAs just like you, you will also be given the opportunity to sit down with Marc Dombrowski or Rita Ryan to discuss your specific client issues.

Marc’s expertise is all things in representing clients before the IRS. Rita, while a foreign tax expert, will also discuss other tax preparation issues. Make your appointment now to take advantage of this great opportunity. There are only seven 15 minutes slots available for both Marc and Rita Friday afternoon, all appointments are on a 1st come 1st serve. basis, so do not wait, book today!

 

Who Is Marc J. Dombrowski?

Marc J. Dombrowski, EA specializes in IRS/State Collections Cases, settlements with the IRS, Tax Lien Releases and Corporate Officer Assessments.  He has lectured since 1994 on advanced collection topics. As an Enrolled Agent, he is licensed to practice before the IRS in all 50 states. He received the NAEA President’s Award for his contributions to the practitioner community.

As an educator, he received the NAEA’s Excellence in Education Award. He is a former contributor to CNBC, the NAEA’s EA Journal and the Wall Street Journal Online. He is a Level I, Level II, Level III and Graduate Level instructor with the National Tax Practice Institute. In addition to several Chapter EA speaking engagements, he has spoken for the NYS Society of EA’s, CA Society of EA’s, Florida EA Society, Missouri Society, NJ Society, Tennessee, Washington, Arizona, Michigan, Georgia, Louisiana, New England EA’s, Utah EA Society, NATP and the Ohio EA Society’s Annual Convention(s).  He has collaborated with Tax Practice Pro to provide several Collections Webinars and Podcasts that qualify for Continuing Education on IRS and State Collection Topics. Marc is also a FINRA Arbitrator.

Through his extensive national experience solving a variety of business & personal tax and debt problems, Marc has gained experience in resolutions to fit any situation. “There is no problem, big or small, that cannot be resolved; there is always a light at the end of the tunnel, just take the time to talk to me about it.”

 

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https://txsea.org/
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10/May/2022

Enrolled agents are tax advisors that help find solutions for even the most complex tax issues. TxSEA works with EAs to ensure they have the most up-to-date information and best strategies for helping their clients through a wide range of tax matters, including global taxes. Listed below is some of the basics of foreign tax credits as outlined by the IRS:

Foreign Taxes that Qualify for the Foreign Tax Credit

 

Generally, the following four tests must be met for any foreign tax to qualify for the credit:

  • The tax must be imposed on you
  • You must have paid or accrued the tax
  • The tax must be the legal and actual foreign tax liability
  • The tax must be an income tax (or a tax in lieu of an income tax)

The Tax Must Be Imposed on You

You can claim a credit only for foreign taxes that are imposed on you by a foreign country or U.S. possession. For example, a tax that is deducted from your wages is considered to be imposed on you.

Foreign Country

A foreign country includes any foreign state and its political subdivisions. Income, war profits, and excess profits taxes paid or accrued to a foreign city or province qualify for the foreign tax credit.

U.S. Possessions

For foreign tax credit purposes, all qualified taxes paid to U.S. possessions are considered foreign taxes. For this purpose, U.S. possessions include Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands and American Samoa.

You Must Have Paid or Accrued the Tax

You can claim a credit only if you paid or accrued the foreign tax to a foreign country or U.S. possession.

Joint Return

If you file a joint return, you can claim the credit based on the total of any foreign income tax paid or accrued by you and your spouse.

Combined Income

If foreign tax is imposed on the combined income of two or more persons (for example, spouses), the tax is allocated among, and considered paid by, these persons on a pro rata basis in proportion to each person’s portion of the combined income.

Mutual Fund Shareholder

If you are a shareholder of a mutual fund, or other regulated investment company (RIC), you may be able to claim the credit based on your share of foreign income taxes paid by the fund if it chooses to pass the credit on to its shareholders. You should receive from the mutual fund a Form 1099-DIV, or similar statement, showing the foreign country or U.S. possession, your share of the foreign income, and your share of the foreign taxes paid. If you do not receive this information, you will need to contact the fund.

The Tax Must Be the Legal and Actual Foreign Tax Liability

Your qualified foreign tax is only the legal and actual foreign tax liability that you paid or accrued during the year. The amount of foreign tax that qualifies is not necessarily the amount of tax withheld by the foreign country. The amount of the foreign tax that qualifies for the credit must be reduced by any refunds of foreign tax made by the government of the foreign country or the U.S. possession.

The Tax Must Be an Income Tax (or a Tax In Lieu of an Income Tax)

Generally, only income, war profits, and excess profits taxes (collectively referred to as income taxes) qualify for the foreign tax credit. Foreign taxes on wages, dividends, interest, and royalties generally qualify for the credit. The tax must be a levy that is not payment for a specific economic benefit and the predominant character of the tax must be that of an income tax in the U.S. sense.

A foreign tax is not an income tax and does not qualify for the foreign tax credit to the extent it is a soak-up tax. A soak-up tax is a foreign tax that is assessed only if a tax credit is available to the taxpayer. This rule only applies if and to the extent the foreign tax would not be imposed if the credit were not available.

Foreign taxes on income can qualify even though they are not imposed under an income tax law if the tax is in lieu of an income, war profits, or excess profits tax. The tax must be a foreign levy that is not payment for a specific economic benefit and the tax must be imposed in place of, and not in addition to, an income tax otherwise generally imposed.

 

Foreign Taxes for Which You Cannot Take a Credit

  • The following are some foreign taxes for which you cannot take a foreign tax credit:
  • Taxes on excluded income (such as the foreign earned income exclusion),
  • Taxes for which you can only take an itemized deduction,
  • Taxes on foreign mineral income,
  • Taxes from international boycott operations,
  • A portion of taxes on combined foreign oil and gas income,
  • Taxes of U.S. persons controlling foreign corporations and partnerships who fail to file required information returns,
  • Taxes related to a foreign tax splitting event, and
  • Social security taxes paid or accrued to a foreign country with which the United States has a social security agreement. For more information about these agreements, refer to Totalization Agreements.

 

June 2022 Convention

The IRS provides a very basic outline of how to determine which foreign taxes qualify for the foreign tax credit. However, not all situations are as simple to explore. Join us at our 2022 Convention this June for the opportunity to get a more in-depth, one-on-one consultation with Rita Ryan, JD, LLM, to understand foreign and other tax preparation strategies.

 

Why Join TxSEA?

TxSEA makes it easy for enrolled agents in Texas to stay on top of the credits they need to maintain their licensing, as well as provides an opportunity for networking with other EAs in their local area. This can provide helpful information and lead to tax professionals working as enrolled agents today.

 

Texas Society of Enrolled Agents
https://txsea.org/
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03/May/2022

Business owners will go through many different changes throughout the life of their company. Depending on your business purpose and strategy you may find the need to upsize or downsize to secure the long-term success. So, what comes along with making the choice to scale upwards or downwards? How can you refine your business plan in order to evolve in a new direction that meets your goals?

This all comes down to properly forecasting and planning for the future. After Covid rocked the global economy, we can all safely say, there is no way to be 100% prepared for what tomorrow will hold, however, with careful planning and thoughtful decision-making, you can have an idea of what you will do in different situations, to avoid being completely thrown off by what lies ahead.

 

Look At The Ongoing Needs of Your Business

The more prepared you are, the easier it will be to make quick and effective choices no matter what opportunity or hardship lies ahead for your company. You will want to forecast and scenario-plan in order to maximize your potential for success. Instead of stumbling forward with optimism that your business will continue to thrive without facing any disruptions, you can begin planning for different potential outcomes.

The more potential outcomes you plan for, the less likely you are to be blindsided by the future. Business owners should be planning for multiple different outcomes, developing tactics and strategies that they can use and adapt moving forward to maximize their success and stay on target for their specific goals. You cannot plan for every possible outcome, but the more you explore the possibilities of the future, the more prepared you will be with whatever happens next.

 

June 2022 Convention

Whether you are looking to grow or downsize your business, our team can help you connect to other tax professionals interested in the same thing. Join us at our 2022 Convention this June for the opportunity to network with Texas EAs wanting to reduce their client load with EAs wanting to increase their business. Visit the table in the Vendor room during breaks and/or set-up an appointment for later.

 

Should I Hire An Enrolled Agent?

If you are facing complex circumstances surrounding your 2021 taxes, working with an enrolled agent can help you to navigate your specific situation. We work with individuals and businesses to help them file their taxes quickly and accurately.

 

Why Join TxSEA?

TxSEA makes it easy for enrolled agents in Texas to stay on top of the credits they need to maintain their licensing, as well as provides an opportunity for networking with other EAs in their local area. This can provide helpful information and lead to tax professionals working as enrolled agents today.

 

Texas Society of Enrolled Agents
https://txsea.org/
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01/May/2022

Virtual currencies have become more prevalent in the last few years, causing the need for tax professionals to become more familiar with how crypto transactions affect tax reporting and tax preparation. TxSEA works to help keep our members informed and up to date on all the newest and most relevant laws and processes each tax season.

 

What is cryptocurrency?

A cryptocurrency (or “crypto”) is a digital asset that can circulate without the need for a central monetary authority such as a government or bank. Instead, cryptocurrencies are created using cryptographic techniques that enable people to buy, sell or trade them securely.

Bitcoin and most other cryptocurrencies are supported by a technology known as blockchain, which maintains a tamper-resistant record of transactions and keeps track of who owns what. The creation of blockchains addressed a problem faced by previous efforts to create purely digital currencies: preventing people from making copies of their holdings and attempting to spend them twice.

Individual units of cryptocurrencies can be referred to as coins or tokens, depending on how they are used. Some are intended to be units of exchange for goods and services, others are stores of value, and some are mostly designed to help run computer networks that carry out more complex financial transactions.

One common way cryptocurrencies are created is through a process known as mining, which is used by Bitcoin. Mining can be an energy-intensive process in which computers solve complex puzzles in order to verify the authenticity of transactions on the network. As a reward, the owners of those computers can receive newly created cryptocurrency. Other cryptocurrencies use different methods to create and distribute tokens, and many have a significantly lighter environmental impact.

For most people, the easiest way to get cryptocurrency is to buy it, either from an exchange or another user.

 

How to determine if you owe crypto taxes

You owe crypto taxes if you spend your crypto and it has increased in value from when you first bought it. Here are the different types of taxable events for cryptocurrency transactions:

  • Selling cryptocurrency for a fiat currency
  • Using cryptocurrency to purchase goods or services
  • Trading different types of cryptocurrency

These are only taxable events if the value of your crypto has gone up. To determine if you owe crypto taxes, you need the cost basis, which is the total amount you paid to acquire your crypto. Then you compare that to the sales price or proceeds when you used the crypto.

Let’s say you previously bought one Bitcoin for $20,000. Here are examples of taxable events:

  • If you sell one Bitcoin for $50,000, you’d report $30,000 in gains.
  • If you use one Bitcoin to purchase a $45,000 car, you’d report $25,000 in gains.
  • If you trade one Bitcoin for $60,000 of another cryptocurrency, you’d report $40,000 in gains.

Trades between coins are where crypto taxes get complicated. A crypto trade is a taxable event. If you trade one cryptocurrency for another, you’re required to report any gains in U.S. dollars on your tax return.

Every time you trade cryptocurrencies, you need to keep track of how much you gained or lost in U.S. dollars. That way, you can accurately report your crypto gains or losses. If you’d rather keep it simple, cryptocurrency stocks could make it easier to track gains and losses compared to buying and selling specific coins.

 

How to report crypto on taxes

Crypto gains and losses are reported on Form 8949. To fill out this form, provide the following information about your crypto trades:

  • Name of the cryptocurrency
  • Date you acquired it
  • Date you sold, traded, or otherwise disposed of it
  • Proceeds or sales price
  • Cost basis
  • Total gain or loss

Repeat this process with every taxable crypto event you had for the year.

 

How is crypto income taxed?

Crypto income is taxed as ordinary income at its fair market value on the date the taxpayer receives it. Here are the most common examples of what is considered crypto income:

  • Receiving crypto as payment for providing a service
  • Mining crypto and earning rewards
  • Staking crypto and earning rewards
  • Lending crypto and receiving interest payments
  • Do you pay capital gains and losses on crypto?

Crypto is taxed like stocks and other types of property. When you realize a gain after selling or disposing of crypto, you’re required to pay taxes on the amount of the gain. The tax rates for crypto gains are the same as capital gains taxes for stocks.

Part of investing in crypto is recording your gains and losses, accurately reporting them, and paying your taxes. Like every investor, you want to keep this tax burden to a minimum.

In closing, let’s look at a few effective ways to minimize crypto taxes:

  • Hold successful crypto investments for more than one year before selling or using them. Tax rates on these long-term gains are lower than rates on short-term gains.
  • Use tax loss harvesting. If you’ve had gains and losses on different types of cryptocurrency, you can sell both and use the losers to offset your gains.
  • Consider opening a crypto IRA. Like other IRAs, this type of account lets you make tax-deductible contributions and only pay taxes when you withdraw funds.

 

Should I Hire An Enrolled Agent?

If you are facing complex circumstances surrounding your 2021 taxes, working with an enrolled agent can help you to navigate your specific situation. We work with individuals and businesses to help them file their taxes quickly and accurately.

 

Why Join TxSEA?

TxSEA makes it easy for enrolled agents in Texas to stay on top of the credits they need to maintain their licensing, as well as provides an opportunity for networking with other EAs in their local area. This can provide helpful information and lead to tax professionals working as enrolled agents today.

 

Texas Society of Enrolled Agents
https://txsea.org/
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29/Apr/2022

There are a wide range of benefits for choosing a career as an Enrolled Agent. Listed below are some of the main reasons to pursue your EA credential:

Unlimited Representation for Clients: There are many different types of tax preparation professionals, many of which have limited ability to represent their clients. As an EA you have unlimited rights to represent your client, including representing them directly before the IRS. Tax preparing professionals without the proper credentials are limited in what they can do, making them only able to represent clients whose tax return they have personally prepared and signed off on. When it comes to EAs, these professionals are able to represent their clients on any matters, such as audits, appeals, payment issues, and more, before the IRS.

Able to Handle Complex Returns and Tax Issues: EAs have the potential to take on more clients and charge higher rates, due to their ability to work through even the most complicated tax issues. EAs are able to offer a wide rang of tax services, including directly representing clients through audits at an IRS appeals office, preparing and filing documents on their client’s behalf, communicating with the IRS for them, and more. If you are interested in having a hand’s on approach when representing your clients, becoming an Enrolled Agent is a great idea.

IRS Audits Are Up: The IRS has increased the number of examinations they are performing each season. This means more clients will need to hire an EA to help represent them and sort out their complicated tax dilemmas.

Become More Credible As A Tax Professional: Earning an Enrolled Agent credential is the highest credential you can earn in the tax preparation industry. There is a considerable amount of training and testing required in order to pass the Special Enrollment Examination (SEE), allowing others to know you are a safe resource for them to rely on.

 

June 2022 Convention

Whether you are an established Enrolled Agent or just beginning your career, our seminar will help ensure you are prepared for growth with R/E training sessions and other great information. TxSEA helps tax professionals connect to others in the industry for excellent networking and learning opportunities. Join us at our 2022 Convention this June to become more dynamic and versatile in your career.

 

Should I Hire An Enrolled Agent?

If you are facing complex circumstances surrounding your 2021 taxes, working with an enrolled agent can help you to navigate your specific situation. We work with individuals and businesses to help them file their taxes quickly and accurately.

 

Why Join TxSEA?

TxSEA makes it easy for enrolled agents in Texas to stay on top of the credits they need to maintain their licensing, as well as provides an opportunity for networking with other EAs in their local area. This can provide helpful information and lead to tax professionals working as enrolled agents today.

 

Texas Society of Enrolled Agents
https://txsea.org/
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20/Apr/2022

Becoming an Enrolled Agent is a path that attracts individuals from all different backgrounds. Whether you are fresh out of high school or someone that has dedicated decades of your life to your career, becoming an EA is an opportunity that can offer you a great future with stable income. In this article we will explore the options for those who go through the process of earning their EA credential and what career options they have once they have.

 

Who Do Enrolled Agents Work For?

First and foremost, enrolled agents are individuals who represent tax payers. As stated by the IRS: 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.

This means, ultimately, in any environment an Enrolled Agent works in they are ultimately working for the tax payers they represent. However, this can be done working as an independent contractor, for an established business, or for a business they create themselves.

 

Jobs You Can Have With an Enrolled Agent Credential

While we outlined this in our previous blog post, listed below are some of the best job opportunities for those who have earned their EA credential according to the NAEA:

Public Accounting Firm Tax Staff

Public accounting firms are a great place for EAs to work for a variety of reasons: they often offer great benefits, including higher than normal paid time off and a strong sense of job security. At a public accounting firm, EAs can work as tax staff, helping to prepare returns and representing clients before the IRS. EAs will likely work with a variety of clients, from individuals to corporations, and will get highly experienced guidance on tax related matters. Public accounting is a great place to start your career and jump into other jobs, or it can be a great place to continue your career well into the future depending on your need for growth and your firm’s ability to provide it.

Small Accounting Firm Tax Staff

There are plenty of smaller CPA firms out there who have more clients than they know what to do with. This is a great opportunity for an EA – they can come in and take quite a few tax related matters off a small practice owner’s hands. EAs can take on a variety of responsibilities and grow into the role of a tax professional. Small accounting firms can also offer a lot of benefits in terms of scheduling, time-off, work from home opportunities, and growth.

Banking

Banks are regulated by the Federal Reserve and therefore have to deal with government oversight on a consistent basis. Having an EA on staff can help banks work with regulations while also making sure they are tax compliant. Banks offer similar benefits to public accounting firms: good salary, good benefits, and high job security. They also have an added benefit of having more paid holidays than most businesses. However, you may have less flexibility in terms of your schedule, so you’ll have to evaluate what’s most important to you in your career.

Law Firm Staff

Tax law firms will definitely benefit from having an EA on staff who can represent clients before the IRS (for example, if the client was audited) and deal with any IRS related notices received on behalf of the client. Law firms are also small businesses which may benefit from having tax personnelle on their staff to help them handle their small business taxes. Law firms offer different benefits depending on size. Similar to public accounting firms vs small CPA firms, a large firm will likely offer better pay, more security, and better benefits, while a small firm will offer more ownership and more flexibility.

Investment Firm Staff

Investment firms need tax professionals on staff who can help them minimize the tax obligations of their clients. An EA can advise investment firm staff on how to handle the purchase and sale of investments to ensure the goals of clients are met in any given tax year. Larger investment firms tend to offer very good benefits for their staff, as well as more progressive flexibility. If you’re an EA and you’re interested in investing, this would be a great opportunity to do something you enjoy while also having a lot of salary and work-time flexibility.

Department of Revenue Staff

A great benefit of being an EA is having the ability to work for the IRS or state departments of revenue. This is at the heart of an EAs core duties and responsibilities, and you’ll be guiding people through tax obstacles on a daily basis. Working in government means you’ll likely have better vacation, health, and retirement benefits, as well as increased job security. You may not be paid quite as well as if you worked in the private sector, but you may enjoy knowing you’re working for an entity meant to serve the public.

CEO or Owner of Your Own Business

Many EAs start their own tax preparation and planning businesses. You would perform all the essential duties of an EA: tax preparation, tax strategy, and representing clients before the IRS. You may also incorporate bookkeeping services into your practice, or start a small business with a partner who does advising and accounting related work to have a fully rounded accounting practice.

The sky’s the limit when you start your small business, and it really gives you a chance to work with your passions. Love architecture? Become a tax preparer who works specifically with the intricacies of the architecture business. There are so many small businesses out there in a variety of niches that really need tax and accounting help. You can be the one to help them take advantage of deductions, strategize to minimize tax liabilities, and advise them on specific accounting aspects of their business.

Having your own business offers the greatest benefits while posing the largest risk. You may have unlimited flexibility, but you’ll have to earn clients to make money. You can make a lot of money, but you may have more clients than you want to deal with. It’s all about balance when owning your own business.

Staff of Small Businesses in Various Industries

Most every business would benefit from having an EA on staff. Small business owners don’t usually have the time to deal with tax related matters or IRS notices, and would really benefit from having someone on staff who could help them with their accounting throughout the year and their taxes during tax season. Having an EA in house also means small business owners can actively take advantage of tax minimizing decisions on a regular basis.

 

Should I Hire An Enrolled Agent?

If you are facing complex circumstances surrounding your 2021 taxes, working with an enrolled agent can help you to navigate your specific situation. We work with individuals and businesses to help them file their taxes quickly and accurately.

 

Why Join TxSEA?

TxSEA makes it easy for enrolled agents in Texas to stay on top of the credits they need to maintain their licensing, as well as provides an opportunity for networking with other EAs in their local area. This can provide helpful information and lead to tax professionals working as enrolled agents today.

 

Texas Society of Enrolled Agents
https://txsea.org/
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11/Apr/2022

What Is an Enrolled Agent?

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.

 

Enrolled Agent vs. Other Tax Professionals

One of the major differences between an EA and other tax professionals is the certification process. To become an EA, you can follow two different paths. One is to work for the IRS in a position that requires you to interpret the tax code. The other is to pass the Special Enrollment Exam (SEE) and a background check. The SEE is a three-part exam the IRS administers. It covers tax concerns for individuals and businesses as well as other practices and procedures.

Another major difference is the unlimited practices that an EA has. EAs can represent anyone on any matter relating to taxation, collection or appeals. The only other professional with representation ability like this is a certified public accountant (CPA). EAs also have federal licenses, which means they can practice in any state.

 

Jobs You Can Have With an Enrolled Agent Credential

Public Accounting Firm Tax Staff

Public accounting firms are a great place for EAs to work for a variety of reasons: they often offer great benefits, including higher than normal paid time off and a strong sense of job security. At a public accounting firm, EAs can work as tax staff, helping to prepare returns and representing clients before the IRS. EAs will likely work with a variety of clients, from individuals to corporations, and will get highly experienced guidance on tax related matters. Public accounting is a great place to start your career and jump into other jobs, or it can be a great place to continue your career well into the future depending on your need for growth and your firm’s ability to provide it.

Small Accounting Firm Tax Staff

There are plenty of smaller CPA firms out there who have more clients than they know what to do with. This is a great opportunity for an EA – they can come in and take quite a few tax related matters off a small practice owner’s hands. EAs can take on a variety of responsibilities and grow into the role of a tax professional. Small accounting firms can also offer a lot of benefits in terms of scheduling, time-off, work from home opportunities, and growth.

Banking

Banks are regulated by the Federal Reserve and therefore have to deal with government oversight on a consistent basis. Having an EA on staff can help banks work with regulations while also making sure they are tax compliant. Banks offer similar benefits to public accounting firms: good salary, good benefits, and high job security. They also have an added benefit of having more paid holidays than most businesses. However, you may have less flexibility in terms of your schedule, so you’ll have to evaluate what’s most important to you in your career.

Law Firm Staff

Tax law firms will definitely benefit from having an EA on staff who can represent clients before the IRS (for example, if the client was audited) and deal with any IRS related notices received on behalf of the client. Law firms are also small businesses which may benefit from having tax personnelle on their staff to help them handle their small business taxes. Law firms offer different benefits depending on size. Similar to public accounting firms vs small CPA firms, a large firm will likely offer better pay, more security, and better benefits, while a small firm will offer more ownership and more flexibility.

Investment Firm Staff

Investment firms need tax professionals on staff who can help them minimize the tax obligations of their clients. An EA can advise investment firm staff on how to handle the purchase and sale of investments to ensure the goals of clients are met in any given tax year. Larger investment firms tend to offer very good benefits for their staff, as well as more progressive flexibility. If you’re an EA and you’re interested in investing, this would be a great opportunity to do something you enjoy while also having a lot of salary and work-time flexibility.

Department of Revenue Staff

A great benefit of being an EA is having the ability to work for the IRS or state departments of revenue. This is at the heart of an EAs core duties and responsibilities, and you’ll be guiding people through tax obstacles on a daily basis. Working in government means you’ll likely have better vacation, health, and retirement benefits, as well as increased job security. You may not be paid quite as well as if you worked in the private sector, but you may enjoy knowing you’re working for an entity meant to serve the public.

CEO or Owner of Your Own Business

Many EAs start their own tax preparation and planning businesses. You would perform all the essential duties of an EA: tax preparation, tax strategy, and representing clients before the IRS. You may also incorporate bookkeeping services into your practice, or start a small business with a partner who does advising and accounting related work to have a fully rounded accounting practice.

The sky’s the limit when you start your small business, and it really gives you a chance to work with your passions. Love architecture? Become a tax preparer who works specifically with the intricacies of the architecture business. There are so many small businesses out there in a variety of niches that really need tax and accounting help. You can be the one to help them take advantage of deductions, strategize to minimize tax liabilities, and advise them on specific accounting aspects of their business.

Having your own business offers the greatest benefits while posing the largest risk. You may have unlimited flexibility, but you’ll have to earn clients to make money. You can make a lot of money, but you may have more clients than you want to deal with. It’s all about balance when owning your own business.

Staff of Small Businesses in Various Industries

Most every business would benefit from having an EA on staff. Small business owners don’t usually have the time to deal with tax related matters or IRS notices, and would really benefit from having someone on staff who could help them with their accounting throughout the year and their taxes during tax season. Having an EA in house also means small business owners can actively take advantage of tax minimizing decisions on a regular basis.

 

Should I Hire An Enrolled Agent?

If you are facing complex circumstances surrounding your 2021 taxes, working with an enrolled agent can help you to navigate your specific situation. We work with individuals and businesses to help them file their taxes quickly and accurately.

 

Why Join TxSEA?

TxSEA makes it easy for enrolled agents in Texas to stay on top of the credits they need to maintain their licensing, as well as provides an opportunity for networking with other EAs in their local area. This can provide helpful information and lead to tax professionals working as enrolled agents today.

 

Texas Society of Enrolled Agents
https://txsea.org/
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29/Mar/2022

These days, more and more individuals and businesses turn to tax professionals to help them file their taxes. This is due to the ever-increasing complexity of tax laws and the consequences that come with misfiling. According to the Bureau of Labor Statistics, this career field is expected to grow by 2.9% through 2026. With this anticipated growth, it is easy to see why so many individuals are making the decision to explore a career as a tax preparer.

So, what skills and certifications are needed in order to become a tax preparer?

First of all, there are many different types of tax preparers. In this article, we will focus on the requirements to become an Enrolled Agent.

 

You Do Not Need A College Degree To Become An EA

One of the most attractive aspects of becoming an Enrolled Agent is that you do not need a degree in order to pursue a career in this field. Individuals who become EAs often have degrees and come from diverse professional backgrounds. This career path appeals to a wide range of individuals including college graduates, high school graduates, and retired workers.

For individuals leaving behind established careers, there is the opportunity to use your industry-relevant knowledge from your previous profession to target specific groups of individuals for your tax practice. Having insider information about the expenses associated with a specific industry can give you an upper hand when working with professionals currently still active in that field.

An example of this would be, if you previously worked in oil and gas, you may find that it is easier for you to attract clients in this industry. You will have a shared background, understand specific expenses associated with the job, and be able to provide helpful insight for their tax filing. Not to mention, you may have connections within this industry which makes it easy to attract more business.

Whether you have a high school diploma or a master’s degree in finance, working as a tax professional can lead to a thriving career. Enrolled agents work beyond tax season helping individuals with more than just preparing tax returns.

 

What Skills Do I Need To Become An Enrolled Agent?

Successful tax preparers possess a unique set of skills. While they may not currently be one of your strengths, you can always develop them during your studies and internships. We’ve listed four common skills that will help you thrive in this career:

  • Attention to detail: Misplacing a single decimal point or zero can result in significant costs or fees, so possessing an eye for detail is critical in this position; however, everyone makes mistakes sometimes, and most accounting software can catch mistakes. In addition, experienced tax preparers look over tax forms done by entry-level tax preparers to catch any discrepancies.
  • Multitasking: As a tax preparer, you need to communicate with multiple clients at once. Knowing how to handle several projects during the same day will help you succeed as a tax preparer.
  • Math skills: Preparing taxes requires quite a bit of math. Most tax preparation software has built-in tax equations, but being able to compute basic numbers can help you file taxes much more quickly. You can learn most of the math skills you need to prepare taxes during your formal education studies.
  • Interpersonal communication skills: Tax preparers must frequently communicate with clients. The best tax preparers can communicate clearly and openly with individuals to help them take advantage of as many tax deductions as possible. Honing your interpersonal skills is essential, and can even lead to repeat clients.

 

 

How Do I Become An Enrolled Agent in Texas?

  • -Obtain a Preparer Tax Identification Number (PTIN)
  • -Visit Prometric’s Special Enrollment Examination (SEE) web page to schedule your test appointments, review the SEE Candidate Information Bulletin PDF, sample test questions, and other test preparation resources. Achieve passing scores on all three parts of the SEE* within three years.
  • -Apply for enrollment and pay enrollment fee electronically using Pay.gov Form 23 or by downloading Form 23, PDF Application for Enrollment to Practice Before the Internal Revenue Service (PDF) and mailing the completed form and a check to the IRS.
  • -Pass a suitability check, which will include tax compliance to ensure that you have filed all necessary tax returns and there are no outstanding tax liabilities; and criminal background

 

 

Should I Hire An Enrolled Agent?

If you are facing complex circumstances surrounding your 2021 taxes, working with an enrolled agent can help you to navigate your specific situation. We work with individuals and businesses to help them file their taxes quickly and accurately.

 

Why Join TxSEA?

TxSEA makes it easy for enrolled agents in Texas to stay on top of the credits they need to maintain their licensing, as well as provides an opportunity for networking with other EAs in their local area. This can provide helpful information and lead to tax professionals working as enrolled agents today.

 

Texas Society of Enrolled Agents
https://txsea.org/
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18/Mar/2022

Tax season can be an overwhelming time for business owners, individuals, and tax preparers. Every year, millions of Americans scramble to file their taxes before the deadline, leading to an influx in business for tax professionals. While the wave of customers is great for business, financially speaking, it can also lead to difficult work environments. Listed below are some insider tips to help you navigate the workload this tax season:

  • Make Realistic Goals: If you look back at previous years and can determine an average number of clients you work with to file tax returns you can set goals for your performance. This may be setting daily goals for how many tax returns you will complete, or weekly. Doing this will help you to stay on track throughout the season, which can help you from rushing to hit your goals at the end.
  • Take Inventory of Staffing Demands: Again, by looking back at your performance in previous years, you can determine what your staffing needs will be this year. You may work independently, but for EAs that work with a team, consider your needs previously and assess if there has been any growth or cutbacks in the total number of clients.
  • Set Deadlines for Documentation: Make sure you are allowing yourself plenty of time to obtain the proper documentation from your clients. You do not want to be 2 weeks away from the tax deadline still waiting to receive the needed paperwork from your clients. Send out email reminders and stay on top of your needs.
  • Maintain Organized Space: In any stressful work situation, but especially one with such a high volume of documents, staying organized is critical. Set rules and deadlines, leave your workspace clean and cleared at the end of each day for a fresh start when you come back. Not only will this help to increase productivity, but it will also do wonders for your mental health.
  • Avoid Distractions: Create an environment that allows you to thrive. This will look different for everyone, however, many of us struggle with some of the most common distractions such as smartphones, and surfing the internet. Work hard to stay on task, take distractions out of your immediate space, and maintain focus.
  • Put Yourself First: While your urge may be to bury yourself in work, it is important to prioritize your own needs. This means getting enough sleep, walking away from work once you have finished for the day, and only taking on as much work as you can handle at one time.

 

Should I Hire An Enrolled Agent?

If you are facing complex circumstances surrounding your 2021 taxes, working with an enrolled agent can help you to navigate your specific situation. We work with individuals and businesses to help them file their taxes quickly and accurately.

 

Why Join TxSEA?

TxSEA makes it easy for enrolled agents in Texas to stay on top of the credits they need to maintain their licensing, as well as provides an opportunity for networking with other EAs in their local area. This can provide helpful information and lead to tax professionals working as enrolled agents today.

 

Texas Society of Enrolled Agents
https://txsea.org/
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Google Listing


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