An Enrolled
Agent (EA) is an individual who has demonstrated technical competence in the
field of taxation. Enrolled Agents, or EA's, can represent taxpayers before
all administrative levels of the Internal Revenue Service.
What
does the term "Enrolled Agent" mean?
"Enrolled" means EA's are licensed by the federal government.
"Agent" means EA's are authorized to appear in place of the
taxpayer at the Internal Revenue Service. Only EA's, 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?
EA's advise, represent and prepare tax returns for individuals, partnerships,
corporations, estates, trusts and any entities with tax-reporting
requirements. EA's prepare millions of tax returns each year. Enrolled
Agents’ 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 EA's specialize in taxation. EA's 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 background 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
EA's required to take continuing professional education?
In addition to the stringent testing and application process, EA's 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 EA's in the United States.
