Jack from Ohio Posted February 28, 2011 Report Share Posted February 28, 2011 I decided to get past all the "improvements" the IRS is making to insure paid preparers are qualified and go take the EA exam. Call me nuts, but I think it may be better with all the info swirling in my head during the middle of season to be able to pass it. Taking all 3 sections together. I will keep everyone posted!! Quote Link to comment Share on other sites More sharing options...
Eli Posted February 28, 2011 Report Share Posted February 28, 2011 Good luck, Jack! Eli Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 28, 2011 Report Share Posted February 28, 2011 Good luck to you, Jack!! I am SURE you will pass all sections, first try. Catherine Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 28, 2011 Report Share Posted February 28, 2011 My vote goes for "very smart"! Good Luck with that. Not all of us are that brave. Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 28, 2011 Report Share Posted February 28, 2011 Good luck. Yes, you are crazy because it is tax season but you are smart because we have confidence that you will pass them. Even if you fail one, so what, you will have another chance. I decided to take the exams (not in the same day) because I don't want to be at the same level of someone who just started preparing taxes 45 days ago. Is someone does take the EA exams, he/she will take the lower exams. That will place them at the same level of the person who doesn't know anything about taxes right now but will take the H&R Block class this coming September. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 28, 2011 Report Share Posted February 28, 2011 The very best of luck to you! You can do it, Jack. Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 28, 2011 Report Share Posted February 28, 2011 Best of luck to you Jack. I agree that taking it in the middle of tax season might just be the best thing to do, because right now you should be on top of your game. Quote Link to comment Share on other sites More sharing options...
Wendy Posted February 28, 2011 Report Share Posted February 28, 2011 Good Luck!! Quote Link to comment Share on other sites More sharing options...
jasdlm Posted February 28, 2011 Report Share Posted February 28, 2011 I am sending lots of 'tax' energy your way! Knock 'em dead!! Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted March 1, 2011 Report Share Posted March 1, 2011 What does the lower exam mean in the preceeding message? I never heard of this. thanks Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 1, 2011 Report Share Posted March 1, 2011 What does the lower exam mean in the preceeding message? I never heard of this. thanks The IRS will start testing preparers who are not CPAs, Attorneys, or EAs. There will be the EA exam set and a lower level exam for preparers who don't want or will not be able to pass the EA exams. The lower exam will be like California's exam for preparers. Passing this exam will qualify you are a preparer but not as an EA. So, here we have a preparer with 15 years of experience who doesn't want to take the EA exams but wants to continue preparing taxes so he/she has to pass the easy/low level exam. We have a person who doesn't know anything about taxes. As a matter of fact, doesn't even know what a W-2 is as I write this response. That person, who doesn't know what a W-2 is, will take the H&R Block class in September 2011 and will pass the low level exam with the IRS. The Tax Preparer who has 15 years of experience but refuses or cannot pass the EA exam will settle for the low level exam. In the eyes of the IRS, he will at the same level of the person who (currently) doesn't know what a W-2 is. That's what I meant by the lower exam. My suggestion to the IRS is: Have all preparers take the EA exam. Whoever reaches the current passing grade for the EA, gets the EA classification. Whoever passes above 50% and below the EA requirement becomes a regular preparer. Whoever gets below 50%, fails and cannot prepare taxes for 2012. I am pretty sure they will extend taking the exam for a couple of years. A couple of years ago, I stated 3 important points: 1.- The tax preparation industry is no longer for people who cannot pass exams and/or cannot put in practice what's learned in classrooms. 2.- I have embraced efiling from the very beginning. 3.- I agreed that the IRS can audit everybody in a 5 year cYcle if they want to. I stated: Don't understimate the power of computers. (Remember that there are different levels of audits, don't get distracted by the traditional audit definition) Quote Link to comment Share on other sites More sharing options...
Cathy Posted March 1, 2011 Report Share Posted March 1, 2011 Kudos, Jack! In the off season, I ponder whether I will be able to go it another year. And once the year starts, slip right back into the groove. Will follow your lead...next year this time, I will be testing also. Would wish you "good luck", but I know you don't need it! Cathy Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 1, 2011 Author Report Share Posted March 1, 2011 UPDATE - - The testing center was an experience all its own. Nothing allowed to take with you except a calculator, and it could only be a simple calculator. No watches, pens, coins, etc. They provided a locked locker for all my "stuff". They provided 2 sharp pencils and 6 pages of official "Prometric Scratch Pad" pages. Had to turn my pockets inside out to get into the testing area. I had NO objections to any of those policies or procedures because implimenting them puts the "AUTHENTIC" stamp on my results. The ladies running the center were great!! The lady in charge told me... "We have you scheduled for 3 tests and each test gives you 4 hours. We are only here 8 hours." My response... "Ma'am if I cannot pass all three tests in the 4 hours allotted for one of them, I have wasted all my preparation time." Can I simply take one after the other until I am finished?" Must be an unusual request, but she agreed and on we went. Section 1 - Individuals: 100 questions, finished in 50 minutes with a passing score. Guessed at only about 4 answers because of ambiguous wording of the questions. They do NOT reveal your actual score, only that you met the requreiments to pass. Section 2 - Business: 100 questions again, and at about question 33 I knew I was in deep trouble with this one. I did not pass, and the thing that killed me was corp basis, gain, etc. I thought I had all the concepts down, but obviously not. Several questions, I would take all the info provided, (not looking at answer choices till I had done my calcualtions) do all the calculations, and have an answer that was not even close to any of the 4 choices. After experiencing this for 5-6 questions, I realized I was getting my butt kicked for lack of understanding the concepts. Spent an hour and 15 minutes. Bright spot - I know what areas to study so when I take it again in May, I will OWN it!! Section 3 - Representation, Practice & Procedures: Same 100 questions, MANY with silly ambiguously worded questions, but I passed it too. So there is a recap of my EA testing experience yesterday. For anyone planning to take the test, study corporation internal and external basis, trading of cash and property for/with/by all the entities until you can teach it in your sleep, and the rest will be downhill from there!! Jack From Ohio - 66% EA and working on it!! Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 1, 2011 Report Share Posted March 1, 2011 From way back when I took the test with pencil and paper, i remember the basis questions as being among the trickiest. Most of the questions did not seem to have any relationship to the world I actually work in, but I did learn a lot studying that section before I took the test. In the pencil and paper days, the test was two days and four parts. And you could not do any of the parts at your own pace - you started when they said start and could leave if you finished early but you could not move on to the second part. Nor could we use even a simple calculator - pencil and paper was what they said, and that was what they meant! Then you waited from the time you took the test in October until sometime in February to find out if you passed. Usually by January, NATP and NAEA had the questions and answers available so if you had a record of your answers or could remember (ha!) how you answered all of those questions you could make a guess as to whether or not you passed. This is not a fun test and you are to be commended for being so proactive in taking it before actually being required. I have no doubt that you will pass the one part remaining with a little study time - not easy to come by this time of year, but soon! Congratulations on passing the two parts already! And on trying all three parts in one day - that makes my head hurt to think about! Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 1, 2011 Report Share Posted March 1, 2011 Congrats Jack. I took one by one and when I was half way on part 2, I thought I was going to fail, but I passed it. I was so happy when I saw that I passed it. I did pass the pencil and paper about 6 years ago but I never registered to get the EA classification. I am planning to register in August 2011 since you have one year to fill out form 23. You remind me of me in 2000. I sent a letter to the Guiness record asking them if I could be on their book if I passed all 6 exams in one sitting for the MCSE (MicroSoft Certified System Engineer). They told me NO. So, I took 2 in one day and a month later, I took 3. A month later, I took number 6 and failed it. I retook it a month later and I passed. Quote Link to comment Share on other sites More sharing options...
JonesTaxPro Posted March 1, 2011 Report Share Posted March 1, 2011 I am working on EA also. Passed the individual one the first time!! Busines one another story. Will take it again after tax season. Need more studying on Basis on corps, estates and trusts and IRA's. Not an easy test, plus driving 3 hrs one way to take the test. Good luck to everyone who is taking it. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 1, 2011 Report Share Posted March 1, 2011 I told the old two-day tests with NO calculator, sitting there doing long division by hand. Basis, basis, basis. You had to wait a year to have another chance. I was not going to go through that twice! I actually got a room at the hotel to be well rested and not fighting traffic for the exams. It was worth every penny to get it done and over with. Congratulations on your 66% EA. I know you'll be back soon to top that off. Quote Link to comment Share on other sites More sharing options...
Catherine Posted March 1, 2011 Report Share Posted March 1, 2011 Congratulations on being 2/3 there! I also took the test back in the paper and pencil and NOTHING else days and it was not fun -- but I slogged through it. Inside basis, outside basis, partner capital accounts -- blech. And how much of that have I used in the intervening years -- durned little, and when I do I have to go look it up. It's not the sort of stuff you remember if you don't use it daily and I'm not sure I'd trust my memory anyway. The thing that annoyed me (and maybe they've changed this part) is all the memorization of limits and phase-outs and other nonsense that changes _every_ year. Quote Link to comment Share on other sites More sharing options...
Julie Posted March 2, 2011 Report Share Posted March 2, 2011 I took it with paper and pencil, too. I remember being astonished when they said calculators were not allowed. But I did pass all four parts on the first try (but it was August, and I'd spend the whole summer studying this stuff). It had nothing to do with the taxes I was familiar with, and a whole lot to do with basis calculations. Anyway, congratulations....only one part left to go! Quote Link to comment Share on other sites More sharing options...
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