| What is an Enrolled Agent? |
Many people assume that all tax preparers are Certified Public Accountants
(CPA's). While some of them are (including our own Dave Allison), a CPA
typically performs more general financial and management advisory services
for business and individuals. So what is an Enrolled Agent and what do they
do?
Enrolled Agents: The Tax Professionals
An Enrolled Agent (EA) is an individual who has demonstrated technical
competence in the field of taxation. Enrolled Agents, or EAs, can represent
taxpayers before all administrative levels of the Internal Revenue Service.
What does the term "Enrolled Agent" mean?
"Enrolled" means EAs are licensed by the federal government. "Agent" means
EAs are authorized to appear in place of the taxpayer at the Internal Revenue
Service. Only EAs, attorneys and CPAs may represent taxpayers before the
IRS. The Enrolled Agent profession dates back to 1884 when, after
questionable claims had been presented for Civil War losses, Congress acted
to regulate persons who represented citizens in their dealings with the
Treasury Department.
How can an Enrolled Agent help me?
EAs advise, represent and prepare tax returns for individuals, partnerships,
corporations, estates, trusts and any entities with tax-reporting requirements.
EAs prepare millions of tax returns each year. EAs' expertise in the
continually changing field of tax law enables them to effectively represent
taxpayers audited by the IRS.
What are the differences between EAs and other tax professionals?
Only Enrolled Agents are required to demonstrate to the Internal Revenue
Service their competence in matters of taxation before they may represent a
taxpayer before the IRS. Unlike attorneys and CPAs, who may or may not
choose to specialize in taxes, all EAs specialize in taxation. EAs are the only
taxpayer representatives who receive their right to practice from the United
States government. (CPAs and attorneys are licensed by the states.)
How does one become an Enrolled Agent?
The EA designation is earned in one of two ways: (1) an individual must pass
a difficult two-day examination administered by the IRS which covers
taxation of individuals, corporations, partnerships, estates and trusts,
procedures and ethics. Next, successful candidates are subjected to a rigorous
back ground check conducted by the Internal Revenue Service; or (2) an
individual may become an EA based on employment at the Internal Revenue
Service for a minimum of five years in a job where he/she regularly applied
and interpreted the provisions of the Internal Revenue Code and regulations.
Are EAs required to take continuing professional education?
In addition to the stringent testing and application process, EAs are required
to complete 72 hours of continuing professional education, reported every
three years, to maintain their status. Because of the difficulty in becoming an
Enrolled Agent and keeping up the required credentials, there are fewer than
35,000 active EAs in the United States.
Are Enrolled Agents bound by any ethical standards?
EAs are required to abide by the provisions of U.S. Treasury Department
Circular 230. EAs found to be in violation of the provisions contained in
Circular 230 may be suspended or disbarred.
(CPA's). While some of them are (including our own Dave Allison), a CPA
typically performs more general financial and management advisory services
for business and individuals. So what is an Enrolled Agent and what do they
do?
Enrolled Agents: The Tax Professionals
An Enrolled Agent (EA) is an individual who has demonstrated technical
competence in the field of taxation. Enrolled Agents, or EAs, can represent
taxpayers before all administrative levels of the Internal Revenue Service.
What does the term "Enrolled Agent" mean?
"Enrolled" means EAs are licensed by the federal government. "Agent" means
EAs are authorized to appear in place of the taxpayer at the Internal Revenue
Service. Only EAs, attorneys and CPAs may represent taxpayers before the
IRS. The Enrolled Agent profession dates back to 1884 when, after
questionable claims had been presented for Civil War losses, Congress acted
to regulate persons who represented citizens in their dealings with the
Treasury Department.
How can an Enrolled Agent help me?
EAs advise, represent and prepare tax returns for individuals, partnerships,
corporations, estates, trusts and any entities with tax-reporting requirements.
EAs prepare millions of tax returns each year. EAs' expertise in the
continually changing field of tax law enables them to effectively represent
taxpayers audited by the IRS.
What are the differences between EAs and other tax professionals?
Only Enrolled Agents are required to demonstrate to the Internal Revenue
Service their competence in matters of taxation before they may represent a
taxpayer before the IRS. Unlike attorneys and CPAs, who may or may not
choose to specialize in taxes, all EAs specialize in taxation. EAs are the only
taxpayer representatives who receive their right to practice from the United
States government. (CPAs and attorneys are licensed by the states.)
How does one become an Enrolled Agent?
The EA designation is earned in one of two ways: (1) an individual must pass
a difficult two-day examination administered by the IRS which covers
taxation of individuals, corporations, partnerships, estates and trusts,
procedures and ethics. Next, successful candidates are subjected to a rigorous
back ground check conducted by the Internal Revenue Service; or (2) an
individual may become an EA based on employment at the Internal Revenue
Service for a minimum of five years in a job where he/she regularly applied
and interpreted the provisions of the Internal Revenue Code and regulations.
Are EAs required to take continuing professional education?
In addition to the stringent testing and application process, EAs are required
to complete 72 hours of continuing professional education, reported every
three years, to maintain their status. Because of the difficulty in becoming an
Enrolled Agent and keeping up the required credentials, there are fewer than
35,000 active EAs in the United States.
Are Enrolled Agents bound by any ethical standards?
EAs are required to abide by the provisions of U.S. Treasury Department
Circular 230. EAs found to be in violation of the provisions contained in
Circular 230 may be suspended or disbarred.
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