The Definitive Guide to Becoming an Enrolled Agent National Association of Enrolled Agents

what is an enrolled agent

EAs must pass a three-part series of tests called the Special Enrollment Examination that covers individual and business tax laws and representation issues. The enrolled agent exam focuses mostly on tax preparation matters and very little on accounting practices. Enrolled agents are authorized to represent taxpayers when it comes to all kinds of tax problems. An enrolled agent can help you file your federal or state tax returns, consult with you, provide solid tax advice, and represent you fully in front of the IRS. If you do get audited or you struggle with payment issues, your enrolled agent can deal directly with the IRS on your behalf. An enrolled agent is a tax professional with authorization from the federal government to represent taxpayers before the Internal Revenue Service (IRS) at all levels.

Want to have a remote tax expert check the return you completed online? Find out more about H&R Block’s Tax Pro Review, which lets you prep your return online and have a CPA, EA or other tax professional check your work. When you work with a tax pro at H&R Block, you can trust you have a professional in your court, dedicated to the highest standards of tax expertise and personal service. Whether you connect with a CPA or EA in one of our offices or through virtual tax preparation, you’ve got a tax expert focused on getting you your maximum refund.Disclaimer number84.

Why You Should Become An Enrolled Agent

Get unlimited live help from tax experts plus a final review with TurboTax Live Assisted Basic. Individuals with EA designations are required to earn 72 CPE hours every three years, use an IRS-approved continuing education provider, and review the enrolled agent CPE credit chart. In case you’re not familiar with Revenue Procedure 81-38, this was the original Revenue Procedure covering limited practice without enrollment. Section 8 of this Revenue Procedure explicitly bars individuals that are NOT an EA, CPA, or attorney from soliciting representation services (which is what “tax resolution”) is. These services are lucrative not only because they are vast but also because they are in demand across all industries. All kinds of entities require the assistance of enrolled agents, such as accounting firms, law firms, investment firms, corporate accounting departments, state revenue departments, banks, and private practices.

what is an enrolled agent

They specialize in tax matters and can provide valuable assistance when dealing with tax troubles. [7] The right to practice before the Internal Revenue Service is regulated by Federal statute,[8] and persons authorized to practice are known as “Federally Authorized Tax Practitioners”,[9] or “FATPs”. The FATP status what is an enrolled agent is granted to attorneys, certified public accountants, and Enrolled Agents, each having unlimited representation rights before the Internal Revenue Service. They are the only federally-licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS.

What’s the Difference Between EAs and CPAs?

Accordingly, CPAs don’t usually have the same amount of passion for keeping up with and performing tax services. So, with the EA license, you’ll be known as the most committed and qualified tax professional. Then, when CPAs decline opportunities to provide tax assistance, you can swoop in and deliver the help clients need. To demonstrate just how privileged enrolled agents are, the National Association of Tax Professionals compares the abilities of various tax professionals.

EAs have limited client privilege under the terms of the IRS Restructuring and Reform Act of 1998. The Act provides for confidentiality between the agent and their client under some circumstances involving audits and collections. Beware of preparers who encourage you to lie or otherwise modify your information in order to get a bigger refund. However, no matter who you hire, there are certain things to keep in mind. When practicing before the Internal Revenue Service, Enrolled Agents may not use the term “certified” in describing their professional designation. An Enrolled Agent admitted to practice before the Internal Revenue Service may not state or imply that an employer/employee relationship exists between the Enrolled Agent and the Internal Revenue Service.

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