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CPAs and attorneys are licensed by the states, but enrolled agents are federally licensed. While the IRS requires all preparers to obtain and maintain a valid Preparer Tax Identification Number (PTIN), enrolled agents have gone beyond basic requirements and have demonstrated their expertise through testing. The principal concern of the National Association of Enrolled Agents and its members is honest, intelligent and ethical representation of the financial position of taxpayers before governmental agencies. Members of NAEA must fulfill continuing professional education requirements that exceed the IRS’ required minimum. In addition, NAEA members adhere to a stringent Code of Ethics and Rules of Professional Conduct of the Association, as well as the Treasury Department’s Circular 230 regulations. NAEA members belong to a strong network of experienced, well-trained tax professionals who effectively represent their clients while striving to make the tax code fair and reasonably enforced for America’s taxpayers.

• An EA can best assist you with an IRS concern, such as a collection issue or an audit.
• Check the SEE candidate information bulletin, answer sample exam questions, and use other references for the test preparation.
• The IRS recognizes EAs as a trusted channel for communication and representation.
• In case they are omitting any important information, they should provide a proper explanation regarding the same, otherwise, there may be serious legal consequences.
• Enrolled agents are specifically authorized to represent taxpayers before the IRS at all administrative levels, up to but not including Tax Court.
• In this article, we’ll go over what exactly an enrolled agent is, what they can do for you, and why you should hire one to help file your taxes.
• EAs are federally authorized to represent taxpayers before the IRS and, like CPAs and attorneys, have unlimited representation rights.

Step 6: Maintain and Renew Enrolled Agent Status

Former employees of the IRS with five years of experience can become enrolled agents without completing the Special Enrollment Examination. Check the SEE candidate information bulletin, answer sample exam questions, and use other references for the test preparation. Rather than figure out how to take advantage of this on your own, check out our simple guide. So, if you think your taxes are too complicated to file yourself using online software and are looking for help from a professional, consider hiring an enrolled agent. Property, such as horses and farm equipment, were commonly confiscated by the government for use during the war, and citizens needed recourse with settling these claims. But it is equally important to fulfill the terms and conditions of any contract that they enter into with their clients.

How Is an Enrolled Agent Different from a CPA?

Enrolled agents that have an NAEA membership are also subject to a code of ethics and rules of professional conduct. The IRS Restructuring and Reform Act of 1998 provides federally-authorized practitioners (those bound by the Department of Treasury’s Circular 230 regulations) with a limited client privilege. This privilege allows confidentiality between the taxpayer and the enrolled agent law firm chart of accounts under certain conditions. The privilege applies to situations in which the taxpayer is being represented in cases involving audits and collection matters. This privilege does not apply to state tax matters, although a number of states have an accountant-client privilege.

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They have the right to represent taxpayers before all administrative levels of the IRS, including audits and appeals. EA prepared civil war claims, and residents were represented in interactions with the Treasury Department. Doing Certified Public Accountant your taxes isn’t always easy, especially if you’re a freelancer or a small business owner with specific tax needs.

• It’s safe to say that when you approach an enrolled agent, you’re speaking with someone who knows tax law inside and out.
• This might involve advising on tax-efficient strategies for businesses, explaining the tax implications of major life events like marriage or retirement, or helping taxpayers take advantage of deductions and credits they might otherwise miss.
• Do a little homework and check with the EA referral service or the NAEA as well.
• Find an enrolled agent by calling a local public accounting company or tax business.

NAEA goes beyond the IRS’s recommendations by requiring members to fulfill continuing education requirements that exceed the IRS’s required minimum. In addition, NAEA members must adhere to a stringent Code of Ethics and Rules of Professional Conduct. Members of NAEA belong to a strong network of experienced , well-trained tax professionals who effectively represent their clients and work to what is an enrolled agent make the tax code fair and reasonablyenforced.