Enrolled Agents
We Are Enrolled Agents
Enrolled Agents (EAs) are the only federally licensed tax practitioners specializing in taxation for individuals and businesses. They have unlimited rights to represent taxpayers before the IRS, meaning they are unrestricted in which taxpayers they can represent and what types of tax matters they can handle. Enrolled Agent status is the highest credential the IRS awards. In addition to the stringent testing and application process, the IRS requires EAs to complete 72 hours of continuing education every three years.
How does one become an Enrolled Agent?
The license can be earned in one of two ways: passing a comprehensive examination covering all aspects of the tax code or working for five years at the IRS in a position regularly interpreting and applying the tax code and its regulations. The IRS also conducts a rigorous background check on all candidates.
How can an Enrolled Agent help me?
Enrolled Agents advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and entities with tax-reporting requirements. Only Enrolled Agents must demonstrate to the IRS their competence in all areas of taxation, representation, and ethics before they are given unlimited representation rights before the IRS. Unlike attorneys and CPAs, who are state-licensed and may or may not choose to specialize in taxes, all Enrolled Agents specialize in taxation. An Enrolled Agent's expertise in the continually changing field of taxation can ensure your tax preparation will reflect the most up-to-date tax laws and requirements.
Privilege and the Enrolled Agent
The IRS Restructuring and Reform Act of 1998 allows federally authorized practitioners (those bound by the Department of Treasury's Circular 230 regulations) a limited client privilege. Under certain conditions, this privilege allows confidentiality between the taxpayer and the Enrolled Agent. The privilege applies to situations where the taxpayer is represented in cases involving audits and collection matters. It does not apply to the preparation and filing of a tax return. This privilege does not apply to state tax matters, although several states have an accountant-client privilege.
Do Any ethical standards bind Enrolled Agents?
Enrolled Agents must abide by the provisions of the Department of Treasury's Circular 230, which provides the regulations governing the practice of Enrolled Agents before the IRS.