Plenty of Enrolled Agent Job Opportunities Revealed in New Report

December 24, 2011 by  Filed under: Taxes 

The IRS ended its controversial outsourcing of debt collection to private companies in 2009. That move brought expectations that IRS employees would have greater success at collecting tax debts. But enforcement efforts have apparently lagged in recent years, leaving more enrolled agent job opportunities to settle the mounting load of taxpayer cases with the IRS.

The Treasury Inspector General for Tax Administration (TIGTA) has reported the finding that almost half of the taxpayer accounts returned to the IRS by the dismissed private collectors have not been acted upon. In fact, 47 percent of the delinquent tax situations formally assigned to outside collection agents are still awaiting action by an IRS agent.

Therefore, according to the TIGTA, many individuals indebted for back taxes are not receiving IRS phone calls and letters. This is not a reason for them to expect their cases are safe from further IRS efforts. Rather, these are chances for a quick resolution of their tax debt by conducting an enrolled agent lookup. The IRS is eager to trim the growing load of delinquent taxpayers.

Apparently, IRS case assignment practices have prevented the selection of assignments from the inventory returned by the private collection companies. The TIGTA estimates that $30.7 million of past due tax liability from the former private collector assignments should have now been collected by the IRS. In addition, the TIGTA report predicts that ignoring these taxpayer accounts will prevent the IRS from potential collections of $516 million over the next five years.

Obviously, the IRS would welcome EA solutions to resolve these debts with little effort. The IRS can certainly avert criticism by cutting down on the past due amount represented by these cases. Both the IRS and its workers’ union have taken defensive positions against the TIGTA analysis of potential tax collection.

The IRS also disagreed with the general observation of inertia regarding the taxpayer accounts. Although no evidence was presented about actual results on the cases returned by private collectors, the IRS averred that the affected taxpayers “will receive” written correspondence and “are subject to” levies and tax liens. Before the taxpayers do receive any of these measures, enrolled agent work could save them money and help the IRS turn away its critics.

Members of Congress are now on the offensive to crush the IRS claim of superiority over private collection agencies. The outsourcing program was terminated when the IRS claimed that its employees could perform the work better. The National Treasury Employees Union exerted some pressure for ending the use of outside collectors as it threatened the elimination of jobs for IRS personnel. Whether the TIGTA report is dubious or not, it revealed the existence of unresolved tax debts that enrolled agent jobs can cure.

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 job opportunities and tax professionals. Access to free questions for the enrolled agent lookup is available on their website.

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