What is an enrolled agent?
An enrolled agent (EA) is a federally licensed tax practitioner
who has proven technical expertise in the field of taxation.
Enrolled agents are empowered by the U.S. Department of the
Treasury to represent taxpayers before all administrative levels
of the Internal Revenue Service (IRS) for audits, collections,
and appeals. Only EAs, attorneys, and certified public accountants
(CPAs) may represent taxpayers before IRS.
How can an EA help me?
Enrolled agents advise, represent, and prepare tax returns for
individuals, partnerships, corporations, estates, trusts, and any
>entities with tax-reporting requirements. The expertise of EAs
in the continuously changing field of taxation enables them to
effectively represent taxpayers audited by the IRS.
Privilege and the Enrolled Agent
The IRS Restructuring and Reform Act of 1998 allow federally
authorized practitioners (those bound by U.S. Department of the
Treasury Circular 230 regulations) a limited client privilege.
This privilege allows confidentiality between the taxpayer and the
enrolled agent under certain conditions. The privilege applies
to situations in which the taxpayer is being represented in cases
involving audits and collection matters. It is not applicable to
the preparation and filing of a tax return. This privilege does not
apply to state tax matters, although a number of states have an
accountant-client privilege.
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 EA status. NAEA members are obligated to complete 90
hours per three-year reporting period. Because of the knowledge
necessary to become an EA and the requirements to maintainthe license, there are only about 40,000 practicing EAs.
What are the differences between enrolled agents and other tax
professionals?
Only EAs are required to demonstrate to the IRS 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 EAs specialize in taxation. EAs
are the only taxpayer representatives who receive their right to
practice from the U.S. government (CPAs and attorneys are
licensed by the states).
