Lend Me Your EAR
F
or Enrolled Agents, the word EAR will, quite simply, enable tax profes- tify and develop the procedural and soft-
sionals to quickly resolve their clients’ IRS ware corrections for the problems
“ear” will be taking on a whole
individual or business account problem(s) encountered.
new meaning this spring when via the Internet in a secure environment. “For the first time in the history of the
EAR will be one of several electronic services service, we demonstrated the capability to
the IRS unveils, nationwide, to tax
available through the IRS’ e-services Web interact securely with our practitioners over
professionals the “Electronic Account site. The technology has been available for the Internet to resolve account-related
quite some time now; implementing it, inquiries” wrote Terence H. Lutes, Director
Resolution” program (EAR).
though, was easier said than done. of Electronic Tax Administration (ETA) in
Thanks mainly to the more than 250 his email to the PSMS participants.
By James Leimbach, EA Enrolled Agents who participated in the Unfortunately, due to budgetary con-
IRS’ prototype named Practioner Secure straints, the IRS was forced to discontinue
Messaging System (PSMS), that capability the PSMS prototype on May 1, 2002.
is now becoming a reality. Initially, the EAR program was scheduled
The PSMS—launched in February of for nationwide implementation last fall;
2000—was the test project designed to however, due to the demands of project
precede the nationwide implemen- management and testing, the IRS found
tation of the EAR program. PSMS that a more realistic date will be after the
participation was limited to only 2003 filing season.
EAs who met, among other cri- Operating the prototype was invaluable
teria, a high level of not only for the IRS, but also for EAs. The
involvement in the e-file EA profession was the only one selected to
arena. The prototype testing participate in the prototype testing of
involved test-case scenarios as what will have a profound impact on all
well as live cases submitted by tax professionals in future representation
EAs. As can be expected with before the IRS.
the implementation of any Unlike PSMS, EAR will be much easier
new security intensive Internet to use. The PSMS system required users to
technology, problems did arise. download and install a Digital ID on their
The intent of PSMS was to iden- computer. The IRS’ PSMS Web site then
About the Author:
James D. Leimbach, EA (USAF Ret.) is a retired U.S. Air Force Senior Master Sergeant who obtained his EA
credential while on active duty. While in the USAF, he held positions as Superintendent of Operations, Chief of
Computer Operations, Chief of Systems Control, Database Manager and various other computer operations and
programming positions. His practice provides tax preparation, e-filing, IRS representation, with a special focus on
military clients. He was the 36th person selected to participate in PSMS.
January • February 2003
used the Digital ID to ensure that the user IRS in implementing the EAR program. By The TDS system is planned for imple-
connecting to the site had authorized utilizing SSL encryption, the IRS’ security mentation at roughly the same time that the
access. Without the Digital ID, nothing concerns have been resolved. Users will log IRS unveils the EAR Program in 2003. TDS
could be accessed on the PSMS Web site, on to the EAR system via a transparent will not be a direct part of the EAR system,
not even the home page. security system and retrieve their IRS but instead a separate electronic option.
In addition to the Digital IDs required, all email response(s) from a secure mailbox. The ability of a tax professional to
users had to install Rivest-Shamir-Adleman As with the PSMS system, EAR will resolve a client’s IRS account problem in a
(RSA) Security Keys on their computers. require the user to have a Form 2848, matter of hours via the Internet as opposed
The RSA Security Keys were required in Power of Attorney (POA) or equivalent on to weeks or months using the postal system
order to decrypt the encrypted email the IRS file with the Centralized Authorization is worthy of every EA’s attention.
sent in reply to the user’s PSMS submission. File (CAF) system prior to being granted With the nationwide implementation
Instead of Digital IDs and RSA Security access to a client’s account. of the EAR, DA, and TDS systems, tax
Keys, the EAR system will utilize a transpar- To handle the POA requirement, the professionals will be able to have POAs
ent version of the Secure Sockets Layer (SSL) PSMS system had a dedicated fax machine processed immediately into the CAF sys-
software—an IRS issued PIN number and for its users. After transmitting the POA, tem, obtain transcripts in a matter of
password. Users will go to the IRS’ e-service users would usually have to wait 1–3 days minutes, and resolve client account prob-
site and simply log on. The elimination of for the POA to be manually input into the lems in a matter of hours.
Digital IDs and RSA Security Keys was a CAF system before being able to address a As a client with an IRS account prob-
major improvement in streamlining access client’s account electronically. lem, which of the following would you
for users, particularly for AOL users. With the EAR system, users will access rather engage:
A significant problem encountered the IRS’ Web site and prepare a Disclosure
with the PSMS system for AOL users was Authorization (DA) application which is an 1. A tax professional who estimates 4–8 weeks
the encrypted email they received. The electronic alternative for submitting a POA. (or more) for resolution of your IRS problem?
AOL software was unable to handle Once the form has been filled out com- OR
decrypting the IRS’ email due to it being pletely, the user hits “Submit” on the screen, 2. An EA who estimates a few hours to
in a Secure/Multipurpose Internet Mail and the DA is immediately processed into resolve your problem?
Extensions, (smime) .p7m format. This the CAF system. Practitioners will then be
major roadblock required AOL users to set able to immediately access their clients’ This is a major change for our
up a separate email account with another accounts electronically. profession and it is one that we can all
email service such as Microsoft’s Hotmail Another constraint for PSMS users was participate in and help nurture to become
and use other software such as Microsoft the inability to electronically obtain IRS what our clients, the IRS, and we need.
Outlook Express in order to access and transcripts such as an IRP, IRMF, etc. The The bottom line is that two-thirds of the
read the encrypted email. Transcript Delivery System (TDS), which EAR name already has our EA credential in
All of those previous PSMS security is a separate IRS e-service from EAR, will it. We, as EAs, need to take advantage of
problems will be eliminated with the use of resolve that problem by enabling practi- this golden opportunity. EA
SSL, IRS issued PINs, and passwords. To be tioners to obtain transcripts from the IRS’
sure, security is a paramount issue for the secure Internet site.
January • February 2003 15