What is an Enrolled
Agent?
An Enrolled Agent (EA) is a federally licensed tax practitioner
who has technical expertise in the field of taxation and who is empowered by
the U.S. Treasury Department to represent taxpayers before all administrative
levels of the Internal Revenue Service for audits, collections, and appeals.
What are the
differences between Enrolled Agents 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 focus on taxes, all EAs specialize in taxation. EAs are the
only taxpayer representatives who receive their right to practice from the federal
government. (CPAs and attorneys are licensed by the states).
How can an Enrolled
Agent help me?
An Enrolled Agent's expertise in the continually changing
field of taxation enables them to develop a tax plan that will legally reduce
their clients' tax burden. EAs can also advise and represent taxpayers audited
by the IRS. Finally EAs prepare millions of tax returns each year for
individuals, corporations, partnerships, estates, trusts, and any other
entities with tax-reporting requirements.
What does the term "Enrolled Agent" mean?
"Enrolled" means EAs are licensed to practice 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
Congress acted to regulate persons who represented citizens in their dealings
with the Internal Revenue Service.
How does one become
an Enrolled Agent?
The EA credential is earned in one of two ways: (1) An individual must pass a challenging three
day examination administered by the IRS which covers taxation of individuals, corporations,
partnerships, estates, trusts, procedures and ethics. (2) An individual may
become an EA based on employment at the Internal Revenue Service for a minimum
of 5 years in a position where he or she regularly applied and interpreted the
provisions of the Internal Revenue Code and its regulations. All candidates are
subjected to a thorough background check conducted by the Internal Revenue
Service.
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 every 3 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.
