Discussion:Unenrolled preparer representing under CPA
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Revision as of 13:24, 14 March 2008 Taxstudent (Talk | contribs) (There was a PLR) Next diff → |
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| After I left him, I was partnered with an unenrolled preparer and when her clients were audited, she would put both our names on the POA, but that was different since she prepared the return, but she could not represent my clients on a joint POA, not that I would permit that.}} | After I left him, I was partnered with an unenrolled preparer and when her clients were audited, she would put both our names on the POA, but that was different since she prepared the return, but she could not represent my clients on a joint POA, not that I would permit that.}} | ||
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| + | {{ForumReplyPost|UserID=Taxstudent|Date=14 March 2008|Text=There was a PLR a few years ago that dealt with this issue. An attorney and two unenrolled "return preparers" were on the POA. Since they had not prepared the return, the Service ruled adversely. However, you can file an 8821 for the unenrolled return preparer so they can assist in the info exchange, they just can't represent the client, i.e. advocate on behalf of the client. Experts, like appraisers and engineers, are given a little more leeway in this regard, but that is an informal practice.}} | ||
Revision as of 13:24, 14 March 2008
Discussion Forum Index --> Advanced Tax Questions --> Unenrolled preparer representing under CPA
Discussion Forum Index --> Tax Questions --> Unenrolled preparer representing under CPA
| 14 March 2008 | |
| I heard that if an unenrolled preparer was listed on a 2848 (power of attorney) along with a CPA, that the unenrolled preparer could represent a taxpayer even if the preparer didnt prepare the tax return in question, as the unenrolled preparer would be working under the CPA license and the CPA would not have to be present during the examination. Is this accurate and if so how do you support your position? | |
| 14 March 2008 | |
| Why can't the unenrolled preparer just start preparing for his EA exam? What, is there some emergency where the CPA can't handle it all?
Another point, which I don't know, can an EA sign returns and rep. people as an employee of a CPA firm? I don't know how restrictive the CPA's are about requiring all members to be CPAs, and only letting CPA's sign returns in the CPA firm/office. | |
TheTinCook (talk|edits) said: | 14 March 2008 |
| Sure, and EA can sign returns (you mean sign as paid preparer, right? Not the other kinds of signing?) and rep people in front of the IRS, as an employee of a CPA firm. He could even do it as an employee of the local Jiffy Lube franchise.
If I were the CPA, I wouldn't send an un-enrolled preparer alone on such a mission. I'm pretty sure that doing so would violate the regs. However, the un-enrolled preparer can do the kind of stuff an 8821 authorizes under the CPA's auspices. | |
| 14 March 2008 | |
| Actually in review of a couple items I think maybe what I heard was right, under the Limitation on substitution or delegation
The recognized representative can substitute or delegate authority under the power of attorney to another recognized representative only if the act is specifically authorized under the power of attorney. After a substitution has been made, only the newly recognized representative will be recognized as the taxpayer's representative. If a delegation of power has been made, both the original and the delegated representative will be recognized by the IRS to represent the taxpayer. | |
| 14 March 2008 | |
| Any recognized representative may substitute or delegate authority if the substitution or delegation is specifically authorized in the original power of attorney. To make a substitution or delegation, the representative must file the following items with the IRS office(s) where the power of attorney was filed.
1. A written notice of substitution or delegation signed by the recognized representative. 2. A written declaration of representative made by the new representative. 3. A copy of the power of attorney that specifically authorizes the substitution or delegation. so what do you think? | |
TheTinCook (talk|edits) said: | 14 March 2008 |
| You can't delegate to a person who is otherwise unqualified to practice before the Service. | |
| 14 March 2008 | |
| I understand. I think I was confusing being a partner, or "member" with being an employee. If the EA was an employee, he would still be able to exercise all rights of practice to which he/she was entitled.
You could end up with a very weird result in a law office. If the EA took/passed the tax court exam, he could be in there litigating, as well as the lawyer, even idependently of the lawyer. I don't think the state bar could say a thing, as long as the EA was not a "partner". | |
Death&Taxes (talk|edits) said: | 14 March 2008 |
| I was an EA at the time, TC. I would meet with District Counsel in docketed cases, or the Appeals Officer, with both our names on the 2848 and with the Attorney having made an order of appearance [can't remember what it is called now]. If there was a problem, DC would call him and he would say, 'talk to David and see if you two can reach a settlement.'
After I left him, I was partnered with an unenrolled preparer and when her clients were audited, she would put both our names on the POA, but that was different since she prepared the return, but she could not represent my clients on a joint POA, not that I would permit that. | |
Taxstudent (talk|edits) said: | 14 March 2008 |
| There was a PLR a few years ago that dealt with this issue. An attorney and two unenrolled "return preparers" were on the POA. Since they had not prepared the return, the Service ruled adversely. However, you can file an 8821 for the unenrolled return preparer so they can assist in the info exchange, they just can't represent the client, i.e. advocate on behalf of the client. Experts, like appraisers and engineers, are given a little more leeway in this regard, but that is an informal practice. | |
