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Enrolled Agent (EA) |
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What is an Enrolled Agent? An Enrolled Agent (EA) is a Federally Authorized Tax Practitioner who has technical expertise in the field of taxation and who is empowered by the United States Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals. Enrolled Agents, like attorneys and certified public accountants (CPA's), are generally unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can practice before. What does the term “Enrolled Agent” mean? “Enrolled” means EA's are licensed to practice by the Federal government. “Agent” means EA's are authorized to appear in place of the taxpayer at the Internal Revenue Service. Proud member of the National Association of Enrolled Agents (NAEA) |
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Frequently Asked Questions About Enrolled Agents |
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What are the differences between "Enrolled Agents" and other tax professionals, including attorneys and certified public accountants (CPA's)? |
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ONLY Enrolled Agents are required to demonstrate to the Internal Revenue Service (IRS) their competence in matter of taxation before they may represent a taxpayer before the IRS. Unlike attorneys and CPA's, who may or may not choose to specialize in taxes, all Enrolled Agents specialize in taxation. Enrolled Agents are the only taxpayer representative who receive their right to practice from the United States government. CPAs and attorneys are licensed by the states, which limits where they can practice in the United States. Click here to return to frequently asked questions about enrolled agents. |
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How does a person become an "Enrolled Agent"? |
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The "Enrolled Agent (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, the successful candidates are subjected to a rigorous background check conducted by the Internal Revenue Service, OR 2. An individual may become and Enrolled Agent based on employment at the Internal Revenue Service for a minimum of 5 years in a job where he/she regularly applied and interpreted the provisions of the Internal Revenue Code and regulations. Click here to return to frequently asked questions about enrolled agents. |
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Are "Enrolled Agents" REQUIRED to take continuing professional education (CPE)? |
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In addition to the stringent testing and application process, Enrolled Agents are required to complete 72 hours of continuing professional education, reported every three years to the IRS, to maintain their status. Because of the difficulty in becoming an Enrolled Agent and keeping up the required credentials, there are only around 46,000 active Enrolled Agents in the United States. Click here to return to frequently asked questions about enrolled agents. |
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Are Enrolled Agents bound by any ethical standards? |
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YES, Enrolled Agents are required to abide by the provisions of U.S. Treasury Department Circular 230. Enrolled Agents found to be in violation of the provisions contained in Circular 230 may be suspended or disbarred. Click here to return to frequently asked questions about enrolled agents. |
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Do Enrolled Agents have an accountant-client privilege? |
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The IRS Restructuring and Reform Act of 1998 allows federally authorized practitioners (those bound by the previously mentioned Circular 230) a limited client privilege. This privilege allows confidentiality between the taxpayer and the Enrolled Agent under certain conditions. The privilege applies to situations where 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. The new privilege does not apply to state tax matters, although a number of states have an accountant-client privilege. Click here to return to frequently asked questions about enrolled agents. |
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Why should I choose an Enrolled Agent who is a member of the National Association of Enrolled Agents (NAEA)? |
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NAEA is the organization of and for Enrolled Agents. The principal concern of the association and its members is honest, intelligent and ethical representation of the financial position of taxpayers before governmental agencies. Members of NAEA are required to complete a minimum of 30 hours of continuing professional education each year in the interpretation, application and administration of federal and state tax laws in order to maintain membership in the organization. This requirement surpasses the IRS required minimum of 16 hours per year. Click here to return to frequently asked questions about enrolled agents. |
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What are the TOP 10 reasons I need an Enrolled Agent? |
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