EA Exam Prep Part 3: Working with Non-Filers (Currently Unavailable)

Author: Eva Rosenberg

This is the third class of the EA Exam Prep Part 3 series. Don’t turn away a potential client because they haven’t filed their returns. Instead, use what you learn from TaxMama® to become their hero. Learn the two types of non-filers. Discover the best approach to working with each type and when to step away. Find out how to access information for these types of clients, and what your first steps to represent them should be. Cover the scope of the engagement, red flags, what to do if you accept the client, what to do if you reject the client, forms necessary for representation, and more.

Publication Date: October 2019

Designed For
Tax practitioners of all levels, regardless of experience, who want to learn about practicing before the IRS and more. Excellent training for staff working in tax offices, accounting practices, corporate settings, independent bookkeepers, and others who must proofread tax returns containing this information. Passing the EA exam, they will be able to pull client records and transcripts and relieve the tax preparers from routine tasks. This is more than just a basic course. This course provides an in-depth look at working with clients who have not filed returns. It is especially helpful to those with no hands-on experience with IRS audits and tax representation – and those who are returning to tax preparation after years in corporate or other jobs. This course is also designed to help CPAs earn their Enrolled Agent credential so they can practice anywhere in the country without re-certifying.

Topics Covered

• Who are non-filers?
• How to work with different types of non-filers
• Toxic clients
• Criminal investigations
• Delinquent collections statistics
• Basic client assessment
• Preliminary steps to accessing client information
• Client questionnaires
• Client contracts
• Engagement letters
• Red flags
• When to walk away from a client
• Steps to take if you accept a new client
• Steps to take if you decline to work with a client
• Information to require from the client
• Tips for locating client information
• How to reconstruct income when verifiable information is missing
• Form 2848, Power of Attorney
• Form 4506-T, Request for Transcript
• Form 8821, Tax Information Authorization
• Using the e-services transcript system and Secure Object Repository (SOR)
• Payment methods
• Using the Uniform Commercial Code (UCC) to assist with payment collections
• Working with clients with emotional or medical issues
• Locating prior year tax software
• Ordering rules for multi-year return preparation
• What to do if the client can't afford to pay the tax owed
• IRS "currently not collectible" (CNC status)
• How to audit-proof the return
• The importance of cooperating with the IRS

Learning Objectives

• Identify two types of non-filers
• Recognize how to assess whether or not to accept the client
• Identify steps to take when accepting a client and when rejecting a client
• Recognize how to find the necessary information to complete the returns
• Describe how to reconstruct income when verifiable information is missing
• Identify what to do if the client cannot pay the taxes owed
• Recognize how to prepare an audit-proof return
• Describe the importance of documentation

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None