Summary of Changes

Form 23 and Form 8554 Redesign

Talking Points

October 15, 2007

Background

• The Office of Professional Responsibility (OPR) plans to introduce a web-based Enrolled Agent (EA) application and renewal process in 2008. This new process, Pay.Gov, will allow applicants to apply for and renew their EA status on-line and pay the fees with a credit or debit card. Targeting:

  • February, 2008 to rollout Form 23, and

  • October, 2008 to rollout Form 8554.

• As part of Pay.Gov, we reviewed and simplified our existing forms. We fast-tracked the redesign to meet a Pay.Gov programming deadline.

• Formed a cross-functional IRS team in July, 2007 to review existing forms and make recommendations for changes.

  • Included representatives from OPR, Chief Counsel, General Legal Services and Tax Forms & Publications.

• Just released the new designs – October 12, 2007.

Highlights of the new design

• Simplified the application process to significantly reduce taxpayer burden.

  • Form 23 is reduced 75%, from four pages to one page.

  • Form 8554 is reduced 50%, from two pages to one page.

  • Placed the instructions on the back-side of the forms for easy retrieval.

  • Eliminated the requirement to attach copy of a letter showing proof of passing the Special Enrollment Examination

• Better format for answering questions

  • Each form has “Important Things” reminder listed at the top

  • Divided the forms into parts to make them easier to complete.

• Translated the form and instructions into plain language to make them easier to read, understand and complete.

  • Consistent wording and consistent questions on both forms

• Simplified the amount of information we collect; only asking for information we need to process the forms.

• On-line applications will match the paper forms

• Form 23

  • Eliminated collection of multiple telephone numbers – asking for best daytime phone only.

  • Eliminated questions about birth date, place of birth, spousal information, and eligibility.

  • Eliminated Schedule A where we used to collect job-related information from former employees. Former employees will simply check the box at the top of the form.

    • No longer need to attach their position description to prove eligibility.

  • Eliminated Schedule B where we currently collect information on late filed returns or unpaid taxes. We will contact the applicant if we determine a questionable tax issue.

  • Reduced the number of professional practice questions from six to four.

• Form 8554

• Eliminated optional consent for IRS to disclose enrollment information. New regulations authorize us to disclose the address you provide to us on the forms. A special notice was issued in October to all Enrolled Agents to provide advance notice about this change.

• Eliminated breakdown of CPE hours. New form only asks for total hours, by year.

• We welcome your feedback and would appreciate any suggestions you have for future form enhancements or revisions.

Other OPR Initiatives

• Streamlining the processing of our Enrolled Practitioner Program Office in Detroit.

  • Goal is to reduce cycle time for processing new applications and renewals that do not contain missing or questionable information.

  • 90-Day implementation plan

    • Project “Ease” – Enrolled Agent Simplification Effort.

• Actively pursuing an Enrolled Agent Look-up feature on IRS.gov

• Enhancing OPR information on IRS.gov to make it more user-friendly

  • Planning a November, 2007 launch for the new site.