How do I become enrolled to practice before the IRS?

[Guest Mike Schwing]

I work for a TPA and would like to be able to sign the form 5558's for my clients. We always seem to have a few problems with employers who fail to file the signature ready 5558's we mail them.

On the signature instructions for the 5558 it indicates that "a person enrolled to practice before the IRS" may sign the form.

What does "a person enrolled to practice before the IRS" mean? Do you have to be a CPA or attorney? - I am neither. How do you go about becoming a person enrolled to practice before the IRS?

Back in 92 I was assigned a permanent representitive number by the IRS which I was to use whenever I filed a Power of Attorney form - does this qualify me as an "enrolled person?" Does it only count when I use the power of attorney?

[Guest kowen]

Of the top of my head, I think Enrolled Actuaries can also practice before the IRS.

[Theresa Lynn]

To be enrolled or a person who can practice in front of the IRS, you must be a licensed attorney, a CPA, or an enrolled agent. The enrolled agent exam is September of each year. Many employees of IRS when they leave IRS also are considered enrolled agents.

Other individuals eligible to be named on a Form 2848 are: an officer of the taxpayer, a full time employee of the taxpayer, a family member of the taxpayer, an enrolled actuary, or an unenrolled return preparer. Students through Low Income Tax Clinics and Student Tax Clinic Programs also may sign.

The authorization provided to an unenrolled return preparer must not exceed the authorization set out in Rev Proc 81-38, which is reprinted as Publication 470, Limited Practice Without Enrollment. (Rev. Proc. 81-38, 1981-2 CB 592 ; IRS Pub. 470.) Any person may be named in a Form 8821 to receive and inspect confidential information, but this does not extend to signing a return.

As for Rev Proc 81-38--

4. SCOPE OF AUTHORITY

.01 An unenrolled individual who signs a return as its preparer may act as the taxpayer's representative if accompanied by the taxpayer, or by filing a written authorization from the taxpayer as provided herein in section 6. Such representation is limited to practice before examining officers of the Examination Division in the offices of District Directors and in the Office of International Operations, and may only encompass matters concerning the tax liability of the taxpayer for the taxable year covered by that return, subject to the limitations herein prescribed.

.02 Privilege of limited practice before the Internal Revenue Service is limited to any person who is not under disbarment or suspension from practice before the Internal Revenue Service or from practice of the person's profession by any other authority (in the case of attorneys, certified public accountants, public accountants, or actuaries).

.03 An unenrolled individual who prepared a return that provides no space on the prescribed form for signature of the preparer, or who prepared a return with respect to which the instructions or regulations do not require that it be signed by the preparer, may appear as the taxpayer's representative, if properly authorized, as set forth in section 4.01.

.04 If the unenrolled preparer appears before the examining officers without the taxpayer, written authorization from the taxpayer for such representation as provided in section 6 must be filed with the examining officer along with a declaration that he or she is not currently under suspension or disbarment from practice before the Internal Revenue Service. The unenrolled preparer may also be required to furnish satisfactory identification.

.05 The unenrolled preparer will be expected to recognize questions, issues and factual situations of such difficulty as to require additional expert assistance and to suggest to the taxpayer that the taxpayer seek such assistance.

I hope this helps.

As for the CAF, it may be irrelevant--do you recall in what capacity you received your CAF?

Good luck,

Theresa Lynn

[Guest Pensions in Paradise]

see attached link to IRS website on enrolled agents

Enrolled Agents