Competency Test ???

[taxguy057]

Has anyone taken this new preparers test yet? If so, how bad or good is it? I'm about to renew my PTIN and I know I will be required to test so wanted to know what to look forward too...

Thanks!!

TG

[MAMalody]

If you had a PTIN last year, you are not required to take the test until 2013. You have the option of taking it in 2011/2012.

[Kea]

I, too, would like to hear from test takers before I take the test. Just to get an idea what I'm in for.

[Jack from Ohio]

I am taking the corporation section of my E.A. exam in a few weeks. The E.A. exam is the hardest test I have ever taken. Passing the E.A. exams will save me hundreds in testing fees over the next 5-8 years.

[Pacun]

Everybody should go for the EA exams. States like MD are now requiring you to pay to register with them if you are not a CPA, Attorney or EA.

[taxguy057]

Thanks guys! I was looking into the EA exam, but WOW!!! whole lot to cover, but makes sense if they going to keep hitting us over the head with new fees!!! :blink:

[mcb39]

I am seriously considering hanging it up rather than travel 200 miles to pay $112 for what is supposed to be a "simple" test. After over 30 years in this business, I feel that I have proven myself and/or the arrangements could have been made somewhat simpler. Will think about it this year and next.

[mlinder42]

Was at a seminar last week where it was advised to take the test this year because if we all wait there will not be enough test slots in metro areas for every to take the test in 2013.

[Lion EA]

Go for the EA now/during 2012. You always have RTRP as a fall-back position before the end of 2013.

[jetaxes]

Go to the TaxBook Forum and look under "Took the RTRP test in Buffalo!

[Crank]

I cant believe that the RTRP test can be that difficult, especially for people who have been preparing taxes for a significant period of time. Wont you have fees to pay as an EA also? So you have to go to a testing center to take the test, I wonder why it isnt internet based with a proctor or at a govt building that is close.

There are fees no matter what. I have to renew my CPA liscense every two years and that has now increased to $100. Also, I have to take 80 hours of continuing education every two years and that can be very expensive. I would think that the EA cost and cont. ed. requirements would be similar to a CPA.

I thought the RTRP would be the least expensive of the three and have the least amount of continuing education.

[mcb39]

The IRS has farmed the testing out to Prometrics. From what I understand, it is still done on a computer, but at their designated site. You will not be allowed any carryins. I am not opposed to the cost of the test or the continuing ed. I have been doing continuing ed since 1999 on my own. Some years I come away feeling that I should not even be preparing taxes because they have discussed things so far over my areas of expertise. However, once I settle down with my clients, I am pleased if I have learned anything that will help them.

My gripe is that there are only two locations in the entire state that the test is being given; and both are large metropolitan areas. For an ageing country girl, that is intimidating. I have an IRS government building less than a mile from my house and wonder why the IRS chose not to use their own facilities. Even one of the speakers at classes this year suggested that we not be the first ones to run right out to take the test. :dunno:

[jainen]

>>only two locations in the entire state<<

For what it's worth, your travel costs are deductible. More important is that this new threshhold will cause marginal preparers to drop out. If you choose to stay in the game, you'll gain a quick competitive advantage. And that wasn't bad advice--if you want to take a chance, odds are pretty good the IRS won't bother with you this year. After the big city crush, Prometrics will probably find a cheaper way to pick up the country stragglers next year.

[mlinder42]

I was just at a seminar that they said that if every one waits there are not enough slots for all to take the test.Prometrics will not add any places.These are the same locations that they give EA exams plus numerous other exams.like real estate and securities.

[Lion EA]

When I took the EA exam, CT had only one location. Since it was a two-day exam, I booked a room in the hotel and packed my own food. Now, CT has three locations for the RTRP exam. It's only one day. And, as has been mentioned, any travel costs are deductible business expenses for those already tax preparers. You do have two years to take the exam. You can wait for a while to see if any other locations open nearer you. Maybe you can find some other preparers to car pool...

[mcb39]

The travel expenses are of no concern. I know that we have until Dec 31, 2013 to take and pass the test. I will sit it out for at least one more year and see what happens. There is no "quick competitive advantage" in my area.

So, if all the slots are filled if and/or when I decide to take the test, what are they going to do with me? If they tell me that I cannot practice, I won't practice. *When I say "me" I don't refer to just my person, there are several preparers I know of who feel the same way.

[Crank]

Wow, only two locations. How foolish of me to assume that the IRS would make it easy.

I have to agree on the competitive advantage as it relates to marginal tax preparers dropping out of business. However, I would hate to see the testing requirements affect seasoned preparers who have a great deal of experience and can offer quality services.

[Uncle Sam]

If your own state has limited locations for the exam - are you near an adjacent state where you can take it?

Since the IRS is giving the exam - it's for a Federal license - it shouldn't make a difference which state it's

taken in.

When my wife took the EA exam two years ago - the two nearest test centers were each about 30 miles away.

The one in our resident state - I'd have to cross a bridge, fight commuter traffic getting there, the center was in

an inconvenient location with no parking facilities (without having to go into a municipal garage). The other was

in the adjacent state where the test facility was in an office building off a main business route with plenty of parking

and a safe neighborhood as well.

[Pacun]

_{I think the problem is that you are planning to make at least 3 trips for the exams. Study hard and take all 3 in one day. When I took the paper exams, I passed all 4 in one seating the very first time and I didn't have all the experience most of you have. If I compare both exam sets, I think, the computer one is harder.}

_{I do believe that you could have 50 years of experience preparing taxes and you will have to study hard to pass the EA exams. I think that when we work, we depend a lot from computers but in reality we don't know the rules completely. For example, (I always do it this way). If I see that someone has SS benefits and W-2s, I don't know exactly where the threshold is for taxable ss benefits. If I see that the SS benefits are not taxable, I add 50K to the W-2 and compare. If the benefits are not taxable at this level of income, I know I made a mistake when entering the SS benefits. As you will understand, I would flank any questions related to taxable SS benefits but the software will help me to prepare correct returns for those 50 years that I have been in practice.}

_{I will suggest you to take the exams in order, number 1 first, then 2 and then 3. Pay close attention to exam 2 (corporations) because it is the harder one.}

[Lion EA]

Who do you visit in a city with a Prometric center? I remember taking the EA exam here in CT with a FL resident who prepared taxes in FL but visited his brother in CT during the exam week. Don't know if he was trying to stay near an exam center or turn a personal visit into a business expense! Maybe you have a relative or old college roommate or...near an exam center that you've been wanting to visit. Or, a tourist site you want to see near an exam center. Be creative.

[Crank]

Computers?

When I took the CPA exam in May 1994 its was the first time they had allowed the use of calculators and it was all hand written. I still have the calculator they gave me as a keepsake since I passed all 4 parts of the CPA exam on my 1st attempt and only had 1 year of public accounting experience .....which was almost 10 years before I took the exam. Hardest test I ever took, studied for 6 months while working full time with a 2 year old at home ... I had 100's of flash cards. The test was given in a youth center gym with rows and rows of tables with proctors pacing the isles. I still cant believe I passed it on the first try.

[Margaret CPA in OH]

Crank, I completely agree about the hardest test ever. I tried without a study course and didn't make it. After my intensive review, I did pass all 4 in November 1993. Of course, my earlier attempt was literally on my knees in May 1989, 2 months before major back surgery. I had to request permission to bring a cushion to kneel on for 2 1/2 days because the back was killing me. And I vividly recall having to write everything by hand in what never seemed to be enough time. Ahhh, CPA, aka 'Can't Pass Again!'

[Pacun]

Computer exams for EA are harder. I took the 4 exams on paper and without calculator and passed in 2006??. I didn't registered. I passed the computer exams this year and I believe the computer exams are harder.

[Lion EA]

I remember doing long division with the pencil and paper they gave us for the EA exam in 2004. Hadn't done that since third grade! Can't remember the question but remember doing the long division.

I think the scary part then was having to take all four parts at once over two days or waiting an entire year to take another part.

I'm glad I passed all four the first time. I hate to memorize, especially LAST year's tax info that I'll never use again, so that made the test and the preparation hard for me.

[joanmcq]

I passed the CPA exam in 2000, with paper, pencil, and calculator (thank god). I was deathly ill from a cold and had to get special permission to bring in cough drops and kleenex. I was put in the 'special situations' exam room. I think I was able to pass all 4 parts simply because I felt so rotten I didn't stress. All I wanted to do was go home & sleep.