Say Goodbye to ERPA (eventually, I guess)

[austin3515]

I assume it is only a matter of time now before they take my ERPA away... That's very disappointing.

https://www.irs.gov/Retirement-Plans/Enrolled-Retirement-Plan-Agent-ERPA-Program-Changes

[pmacduff]

I hear a Tom Poje song in there somewhere Austin...

(to the tune of You Are My Sunshine)

"....please don't take my ER PA away."

Seriously though - other than the reasons given in the first FAQ does anyone see an ulterior motive(s) for this move?

[austin3515]

Such as what? I just think they are going to phase this out. That's too bad because ERPA's were a good substitute for ERISA attorneys for loan failures for example. It is profitable work for me and saved the client a lot of money.

I just think if it is too much work to provide the test the following is going to happen very soon:

Vendors will stop going to all the trouble of being approved as an ERPA trainer

The IRS is going to decide it is no longer efficient to track CPE the way that it does.

And that will be that.

[david rigby]

I don't see sinister motives, just simple: Save some budget $$.

[Tom Poje]

Lady MacDuff-

that is cute and funny!

or maybe another song to Austin's moaning

Don't look so sad

ER-PA is over

but life goes on

and this old world

will keep on turning....

[John Feldt ERPA CPC QPA]

Maybe they could offer the exams once every 5 years instead, now that the 5-year IDP restatement cycle is removed from their task list.

[austin3515]

Don't forget if Ted Cruz gets elected there won't be anymore IRS That's gotta be one of the most cockeyed things I ever heard. I'm sure his secret plan is really to move all of the functions to the newly established Service for Internal Revenue.

[thepensionmaven]

I believe the IRS wording was they will discontinue the ERPA exam, not the ERPA designation.

According to the IRS release, the ERPA designation is renewable.

[austin3515]

If you read my parenthetical and my comments, I am only assuming that it will eventually be phased out altogether. Certainly in 50 years when all the current ERPA's are retired (hopefully!) there will be no need for the designation. I simply assume it will be deleted before then.

[mbozek]

This is a consequence of the continuing 3% reduction of the IRS budget every FY by the House b/c of the Lois lerner mess. IRS has reduced telephone taxpayer assistance services during tax filing season and no longer will prepare tax returns at IRS offices. Tax audits have declined to point were only .8% of taxpayers with income under $200k are audited. I also have a vague recollection that IRS was planning to stop issuing determination letters.

[austin3515]

I also have a vague recollection that IRS was planning to stop issuing determination letters.

This has been done already. Not sure when it's effective, but it's in the next couple of years.

[david rigby]

Austin, I think you missed the sarcasm in mbozek's post.

[austin3515]

OK, he tricked me, especially based on the specificity of every other sentence...

[Gilmore]

It will be interesting to see if there is a big increase in the number of people seeking an ERPA designation with the last test cycle in the beginning of next year. It is a benefit, especially for a smaller firm, to have an ERPA on staff.

If they are going to do away with my ERPA designation at some point then they should rescind the rule that a non-credentialed practicioner cannot sign a 2848, or they should make exceptions for other industry groups' designations.

[austin3515]

If you're in this business it would be silly not to do it now. We had a guy in our office and I said in 5 years you're going to kick yourself for not doing this.