Past the Enrolled Agent Exam/IRS Denial

[Edwin L.]

I passed the enrolled agent examination in 2001 and completed the
"Application for Enrollment to Practice Before the IRS" (Form 23) and
paid the application fee five months ago. Today, I received an IRS
letter from the Director of Practice, with a proposal that my
application be denied for failing to disclose that I was assessed
estimated tax/or failure to pay penalties for the years 1996, 1999,
and 2000. All taxes and estimated tax penalties have been paid at the
time the returns were filed, which were timely.

In Form 23, under 9a, it ask if I was assessed any penalties for the
proceeding 3 years, this is the question where I answered "No",
looking back now I should have answered "Yes" instead. The IRS named
year 1996 which is past the "proceeding 3 year question," and 1999 I
had no tax penalty, but in 2000 I did have an estimated tax penalty of
approximately $1,054, which was paid at the time of filing my return.

I am worried that I will not obtain my enrollment because of this
problem, considering all the hard effort I put in the study time to
past this vigorous two-day exam; it's a shame to be denied EA status
as a result of this problem.

Have any of you experienced this problem? Can anyone share some
comments to help me with my problem?

Any comments would be greatly appreciated. Thank you.

[Helen P. OPlanick EA]

>
>Have any of you experienced this problem? Can anyone share some
>comments to help me with my problem?

There is an appeal process, I would most definitely try it and you just may
want to contact NAEA (National Assn of Enrolled Agents) at www.naea.org for
more suggestions.

Helen, EA in PA
Director, NAEA; Member of The Tax Gang
President, PA Society of Enrolled Agents
1040EZ and 1040A tax prep at www.1040.com/1040pro

[D. Stussy]

The ETP really isn't a "penalty" in form but really an interest assessment,
unlike the other penalties which are based on a flat percentage of tax due to
certain acts (or the early withdrawl from a pension/IRA which is really an
excise tax).

If in your case, you had reported this "penalty" on the return (and it wasn't
assessed later), consider appealing the decision. Note that such an appeal
could take time - it's supposed to be less than a year, but I am aware of a
situation where the Secretary failed to act after several years and the
applicant went to the U.S. District Court to get a Writ of Mandamus to compel an
answer (which was then forthcoming within 3 months and in the applicant's
favor).

[Paul J. Berg]

Dear Edwin L,

Your problem is that you took the wrong path to become an Enrolled Agent
(EA).

There is an EA, who posts to this newsgroup,, who knows very little
about tax preparation and income tax law. They were granted EA
credentials by the mere fact of being an IRS Revenue Officer for 5
years.

They, at one time, billed themselves as "The Nation's Leading Tax
Expert".

This individual was a major player in promoting a nationwide "home based
business tax" scam package for a pyramid scheme enterprise. Did the IRS
take any action to revoke this person's EA credentials? NO, the IRS
renewed the credentials.

Sincerely,

Paul J. Berg

[D. Stussy]

I have to wonder, did anyone actually bother to report them to the Director of
Practice? Aren't they still under investigation, so the public can have a
second shot at them when (not if) they are convicted?

[Kaniande]

Hi Edit,

Was your application finally accepted? Was the problem solved? If not I can give you some some contacts (lawyers) that will assist you free of charge.

Regards

[nka...@gmail.com]

Off course, I meant Edwin.