Contact: Jackie Gellner
202.822.6232, x104
jgellner@naea.org

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For Immediate Release

Registered Tax Return Preparer vs. Enrolled Agent – What's the Difference?

Washington DC, January 18, 2011— The 2011 tax season has just kicked off, yet there are still many questions circulating regarding new tax preparer regulations that the taxpaying public may not have answers to – or even be aware of. The initiative announced by IRS in 2010 to increase oversight of all paid return preparers has resulted in the soon-to-be-established "registered tax return preparer" (RTRP) designation. With a number of different types of tax preparers already in existence, it's important for the taxpaying public to understand the limitations of each kind. More specifically, how will the requirements for the new registered tax return preparers stack up against what's required of an enrolled agent?

Enrolled agents are federally-authorized tax practitioners who have technical expertise in the field of taxation and who are empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the IRS for audits, collections, and appeals. Beginning this tax season, all tax preparers, including EAs, will be required to have a preparer tax identification number, or PTIN. Once the RTRP program launches, the newly registered will also be scrutinized for felony convictions and money owed to IRS – this is nothing new for EAs. As targeted for June 2011, all RTRPs will have to pass basic competency testing, which will be less challenging than the testing EAs presently undergo. And, the 15 hours of continuing professional education credits per year that registered tax return preparers will have to fulfill seems minimal compared to the 72 hours of continuing education EAs must complete every three years (even more if they are members of the National Association of Enrolled Agents).

One of the most differentiating factors between an RTRP and an EA goes beyond tax preparation and into IRS representation. While registered tax return preparers will be able to prepare tax returns and may, on a limited basis, represent taxpayers in examinations of tax returns they prepared, enrolled agents have the authority to prepare any type of tax return and may represent any taxpayer at all levels of the IRS, whether or not they prepared the return.

This season, taxpayers are urged to choose their preparer wisely. While most tax return preparers are professional and provide excellent service to their clients, taxpayers should take the initiative to make sure their tax preparer signs their tax form and includes their PTIN as required by the newly established regulations.

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About NAEA
The National Association of Enrolled Agents (NAEA) is a professional society whose members are dedicated to honest, intelligent and ethical representation of the financial position of taxpayers before the IRS. Its efforts are supported nationwide through a network of affiliated state and local chapters. Members of NAEA must fulfill continuing professional education requirements that exceed the IRS' requirements. NAEA membership also entails stringent adherence to a Code of Ethics and Rules of Professional Conduct, as well as compliance with the Treasury Department's Circular 230 regulations. NAEA members are experienced, well-trained tax professionals who effectively represent their clients and work to ensure the tax code is fairly applied and reasonably enforced.