What Is An Enrolled Agent?
What is an Enrolled Agent?
An Enrolled Agent (EA) is a federally-authorized, technical expert in all fields of taxation. EAs are permitted to represent taxpayers at all administrative levels of the IRS, including audits, collections, and appeals. Only Enrolled Agents, attorneys, and CPAs may represent taxpayers before the IRS.
The Enrolled Agent profession dates back to 1884 when Congress enacted regulations on those persons representing citizens dealing with the US Treasury Department.
How does one become an Enrolled Agent?
The license is earned by passing a comprehensive three-part examination covering all aspects of the tax code, or having worked at the IRS for five years applying tax code and regulations. All candidates are subjected to a rigorous background check conducted by the IRS.
How are Enrolled Agents different from other tax professionals?
Only Enrolled Agents are required to demonstrate high competence in all matters of taxation before they may represent a taxpayer before the IRS. Unlike attorneys and CPAs, who may or may not choose to, all Enrolled Agents specialize in taxes. Enrolled Agents are the only taxpayer representatives who receive their right to practice from the US government (CPAs and attorneys are licensed by the states).
How can an Enrolled Agent help me?
Enrolled Agents advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. Enrolled Agents’ expertise in the continually changing field of taxation enables them to effectively represent taxpayers audited by the IRS.
Are Enrolled Agents required to take continuing professional education?
In addition to the stringent testing and application process, the IRS requires Enrolled Agents to complete 72 hours of continuing professional education, reported every three years, to maintain their Enrolled Agent status. National Association of Enrolled Agent members are obligated to complete 90 hours per three year reporting period. Because of the knowledge necessary to become an Enrolled Agent and the requirements to maintain the license, there are only about 46,000 practicing Enrolled Agents in the United States.
Are Enrolled Agents bound by any ethical standards?
Enrolled Agents are required to abide by the strict provisions of the Department of Treasury’s Circular 230, which provides the regulations governing the practice of Enrolled Agents before the IRS. A Code of Ethics and Rules of Professional Conduct of the association also bind National Association of Enrolled Agent members.