More Enrolled Agent Job Opportunities As Slow Economy Lingers

March 27, 2012 by  Filed under: Taxes 

The unemployment rate is declining and corporate profits are rising but a weak economy continues to affect many people. They are still struggling with their mortgage payments and stagnant income. Plus, some are dealing with the burden of delinquent income tax. When this occurs, they turn to an enrolled agent tax preparer.

A typical situation that calls for enrolled agent expertise is completion of a tax return this year whereupon some tax is owed. Such surprises are unfolding as a consequence of people receiving taxable retirement plan withdrawals or conducting a side business. Tax withholding on the extra income is often negligible or nonexistent, thus leaving a balance due with the tax return. These taxpayers consult with professionals from an enrolled agents list to obtain help. They seek assistance negotiating IRS installment plans and developing better records for capture of all eligible tax deductions.

People who desperately need EA solutions owe taxes on a currently completed return and still have not entirely paid a liability from a prior year. Alternatively, they might have a refund calculated on the newly prepared tax return but not want it all held for payment toward a prior year balance. Professional representation before the IRS is essential for taxpayers faced with choosing between paying tax debt or mortgage payments.

A rising number of taxpayers with dire financial conditions cause more enrolled agent job opportunities. This professional aid keeps economically troubled people filing tax returns instead of hiding from their problems. In addition, a last resort solution is available with the IRS – the Offer in Compromise.

The Offer in Compromise document allows people with severe financial hardships to pay less than the tax amount they owe. The IRS calculates a determination of reasonable collection potential after examining taxpayer income, expenses, and equity in assets. Realistic cases for an Offer in Compromise entail unlikely ability to pay a tax debt in the next two years. Recipients of an Offer in Compromise pay only the amount offered by the IRS. In addition, the IRS retains all tax refunds the individual could have received during the year of the settlement and all refunds for periods preceding the offer.

Preparing an Offer in Compromise demands a significant amount of documentation and following a bureaucratic process. IRS Form 433A and Form 656 are required to request an Offer in Compromise. Self-employed individuals must also complete Form 433B. Most important to the procedure is submission of a statement describing why an Offer in Compromise is reasonable. To avoid mistakes that delay the process, the assistance of an enrolled agent is recommended. The IRS approved only 16 percent of all offers it received in 2004 but accepted 24 percent in 2010. This indicates that more people are eligible for the program and are benefiting from hiring enrolled agents.

After obtaining an Offer in Compromise for a taxpayer, ongoing EA work is also likely. The approved taxpayer must file returns and pay tax on time for the subsequent 5 years.

IRS Circular 230 Disclosure

Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.

Fast Forward Academy is a leading publisher of education for enrolled agent tax preparer and tax professionals. Access to free questions for the enrolled agents list is available on their website.

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