What is an Enrolled Agent?
Written by webtechs

What is an Enrolled Agent?

“Enrolled” stands for being licensed to practice by the federal government, and “agent” is authorized to appear on the behalf of the taxpayer at the IRS. Just enrolled agents, lawyers, and CPA’s have limitless rights to represent taxpayers in front of the IRS. The enrolled agent business goes back to 1884 when, following debatable claims that had been submitted for Civil War losses, Congress was put into action to govern individuals who represented citizens in their proceedings with the U.S. Treasury Department.

How does someone become an enrolled agent?

The license is acquired in one of 2 ways, by passing an extensive examination that covers all facets of the tax code, or after working for the IRS for 5 years in a role that routinely explained and applied the tax code and its guidelines. All applicants are subjected to a painstaking background check carried out by the IRS.

How can an enrolled agent assist me?

Enrolled agents counsel, represent, and prepare tax returns for persons, organizations, firms, estates, trusts, and any others that are required to report taxes. Enrolled agents’ proficiency in the frequently shifting field of taxation allows them to successfully represent taxpayers at all managerial degrees inside the IRS.

Enrolled Agents and Privilege

The 1998 IRS Restructuring and Reform Act allows federally sanctioned professionals (individuals pledged by the Department of Treasury’s Circular 230 guidelines) a restricted client privilege. This privilege enables confidentiality among the taxpayer and the EA under certain terms. The privilege is applied to situations whereupon the taxpayer is being represented in cases that involve audits and collection issues. It is not relevant to the preparation and filing of tax returns. This privilege does not apply to state tax matters, even though a few states have accountant-client privileges.

Is it a requirement for enrolled agents to take ongoing education?

Along with the rigorous examinations and application process, the IRS necessitates enrolled agents to finish 72 hours of ongoing education, reported to them every 3 years, to retain their enrolled agent standing. Members of the NAEA are held at high standards, they are bound to finish 30 hours each year (equaling 90 hours per 3-year period). Since the expertise required to be made an enrolled agent and the necessities to maintain the license, there is just around 46,000 practicing enrolled agents.

What is the distinction between an enrolled agent and other tax professionals?

Enrolled agents only are required to prove to the IRS their proficiency in every area of taxation, representation, and morals prior to them getting limitless representation rights before IRS. Different from lawyers and CPAs, that are state licensed and that might or might not decide to specialize in taxes, every enrolled agent specializes in taxation.

Are enrolled agents duty-bound by any moral standards?

Enrolled agents have a requirement to agree to the conditions of the Treasury Department Circular 230, that provides the guidelines managing the practice of enrolled agents before the IRS. Members of the NAEA are also obligated by a Model Rules of Professional Conduct.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

Leave a Reply

Your email address will not be published. Required fields are marked *