CPA – Right Choice Business Taxes

CPA – Right Choice Business Taxes

CPA – Right Choice Business Taxes.  There is a tremendous amount of misinformation, and outright FRAUD out there concerning the credentials, education and experience of advisors. Some would have you believe that software could take a bookkeeper and give them the education and experience of a CPA…HOGWASH!!

The NAEA [National Association of Enrolled Agents] would rather commit overt fraud and outright lie to you by stating that Enrolled Agents Are America’s Tax Experts. They know better, yet the lying continues. Rather than ramble for paragraphs, I get to reuse a goody from a year ago.

We should be a bit careful and indicate that there are some Enrolled Agents that do have the accounting education and experience, and some may also be CPA’s. However, the education and education “HOLE” hasn’t been plugged. It could be plugged without any undue burden to the Enrolled Agents that meet the IRS criteria to be Revenue Agents, and here is how.

Here is the proposed amendment to the statute that would correct the problem.

The proposed remedy for one portion of the issues would be for Congress to modify

31 USC § 330 (a) by adding new subparagraph (E) to read

“(1) Notwithstanding anything else contained in this Title, the Commissioner is directed to modify Circular 230 to expressly require that the grant of full representation rights to an Enrolled Agent shall require that the Enrolled Agent meet the minimum education requirements [specifically inclusive of a baccalaureate degree, thirty hours of college-level accounting courses, or a CPA certificate] to be not less than the current requirements for IRS Revenue Agent, Grade GS5, Series 0512.
(2)Effective as of the date of enactment, any Enrolled Agent that does not meet the education requirement in (1) above shall be required to be supervised by an attorney, certified public accountant, or Enrolled Agent that does meet the requirement of (1)For purposes of classification under (2) above each Enrolled Agent shall be classified based upon a review of the educational background and reclassified as though they had become an Enrolled Agent upon the date of the enactment of this legislation”

There is absolutely no reason for anyone that is properly qualified to object to the change. All it does is put Enrolled Agents on parity for education and experience requirements with certified public accountants and attorneys.

We think that some clarity in the midst of all of the blather and prattle about Trusted Advisors and Experts is sorely needed.


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Author: abizcannabis

Managing Director & CEO of integrated transactional financial advisory, tax, and technology consulting firm - aBIZinaBOX Inc New York, Chicago, and OaklandCPA.CITP.CISM.CGEIT.CGMAExpertise with: Alt. Investments/Private Equity, Real Estate, Professional Services, CA Cannabis, Tech Start-Ups and Distressed Assets/DebtTechnology Certifications including:Advanced & High Complexity Cloud Integrator AICPA PCPS, CAQ,, IMTA, CITP ISACA CGEIT, CISMState CPA Societies in California, Florida, Illinois, New York and TexasExpertise with Regulatory Compliance - US - HIPAA, FINRA, SEC Rule 17(a)(3)/(4), eDiscovery, FINCEN - EU- EBA, ESMA, EIOPA UK - BoE, PRA, FCA