What is an Enrolled Agent

“Taxpayers rely on IRS guidance at their own peril...” Judge Joseph W. Nega, T.C. Memo. 2014-21 Docket No. 7022-11 01-28-2014

An enrolled agent (EA) is a tax professional who is authorized by the federal government to represent taxpayers before the Internal Revenue Service (IRS) on matters related to tax returns, audits, collections, and appeals.

Enrolled agents can provide tax advice, file tax returns for individuals, corporations, partnerships, trusts, estates, and other entities, and can represent taxpayers at all administrative levels of the IRS, up to but not including Tax Court.

Enrolled Agents have earned this privilege by either passing a comprehensive IRS test covering individual and business tax returns or through experience as a former IRS employee. Enrolled agent status is the highest credential the IRS awards.

EAs are bound by a strict code of ethics and confidentiality and are required to complete continuing education courses to maintain their enrolled agent status. As such, they are uniquely qualified to provide comprehensive tax services, including representation before the IRS, preparing, and filing tax returns, and advising taxpayers on compliance with tax laws.

What are the advantages of working with an Enrolled Agent?

Unlike uncredentialed tax preparers or tax professionals, enrolled agents are continually background checked for criminal convictions and can be prevented from preparing tax returns or practicing because of convictions.
Enrolled Agents are prohibited from hiring disbarred CPA’s or disbarred enrolled agents.
Enrolled Agents can represent you before the IRS and because of their experience dealing with the IRS, they know how to navigate the often-complex tax system and can help you resolve any issues you may have.
Enrolled Agents are required to complete yearly continuing education to keep up with the ever-changing tax code.
As tax experts who have an advanced level of understanding of deductions and credits, enrolled agents can help you save money on taxes.
Enrolled Agents can help you avoid tax penalties by ensuring that your taxes are filed correctly and on time.

Tips for Choosing the Right Enrolled Agent

When it comes time to choose an enrolled agent (EA) for your tax needs, there are a few things you should keep in mind:

Make sure the EA is licensed by the IRS. This ensures that they have undergone the necessary training and education to be able to properly represent you before the IRS. You can find out if a person is a Enrolled Agent by checking them by last name and zip code on the IRS’ Search for Tax Return Preparers webpage.
Ask about the EA's experience. You want to make sure that the EA you choose has experience dealing with cases like yours. Ask about their success rates and any relevant case studies they may have.
Get referrals from other professionals or clients. If you know someone who has used an EA in the past, ask them for their thoughts and experiences. Alternatively, you can also check out online review sites like Yelp or Google Reviews to see what others have said about specific EAs.
Schedule a consultation with the EA. This will allow you to get to know them better and see if they're a good fit for you and your needs. Be sure to come prepared with questions so that you can get all of the information you need during this meeting.

In conclusion, the advantages of working with an Enrolled Agent are abundant. From their expertise on taxation laws and changes to their ability to represent you before the IRS, they offer unique insights, advice and representation that can be extremely valuable for anyone dealing with taxes or other financial matters. The ease of communication is also a great benefit as having someone close by who understands your situation can help make things easier. If you're looking for reliable tax advice from an experienced professional, consider hiring an Enrolled Agent – it may just save you time, money and hassle in the long run!