Enrolled Agent FAQ

What are enrolled agents?

Enrolled agents are the only federally-licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS. These tax specialists have earned the privilege of representing taxpayers before the IRS through testing or experience. All candidates are subjected to a rigorous background check conducted by the IRS. Enrolled agents must abide by a code of ethics and are required to complete at least 72 hours of continuing education every three years to ensure they are up-to-date on the constantly changing tax code.

What are the differences between enrolled agents and other tax professionals?

The enrolled agent license is the highest credential the IRS grants a tax professional. Enrolled agents are generally unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and the IRS offices before which they may practice. Attorneys and CPAs may or may not choose to specialize in taxes, and are licensed by the states, but enrolled agents specialize in taxes and are federally licensed.

What is the advantage of choosing an enrolled agent?

If you get a letter from the IRS or worse, your EA can speak directly to the IRS on your behalf. The advantage of working with an enrolled agent lies not only in the depth of her experience and understanding of how to prepare a tax return, but in her knowledge of tax law that may be used to represent taxpayers before the IRS.

What is representation?

Taxpayers are allowed to represent themselves before the various administrative levels of the IRS. However, most taxpayers facing an IRS action would be wise to send a qualified tax expert in his or her place. Taxpayers who are represented have a guide who can lead them through the process, someone authorized to speak on their behalf (and in their place) and fight for the best possible outcome.

What does the IRS recommend?

The IRS recommends using a tax preparer that is a member of a professional organization, such as NAEA, that offers continuing education and other resources, and holds members to a code of ethics. NAEA goes beyond the IRS’ recommendations by requiring members to fulfill continuing education requirements that exceed the IRS’ 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 make the tax code fair and reasonably enforced.

How can an enrolled agent help me?

EAs prepare millions of tax returns each year and their expertise in the continually changing field of taxation enables them to effectively represent taxpayers before the IRS for whichever problem the taxpayer has.

Are there really tax changes each year that might affect me?

Yes. Every year there are numerous changes to the tax laws and tax code. EAs take at least 16 continuing education credits each year to keep up with the changes and have research tools at their disposal to constantly monitor updates. Most taxpayers do not have the time, desire or the research tools necessary to keep up with the tax code each year. When you choose an enrolled agent, you know your preparer keeps up with the rules and regulations and will use this expertise to do the best job possible for you.

What are the key points to remember when hiring a tax professional?

Your tax needs are best served by an enrolled agent. However, no matter who you hire there are certain things to keep in mind.

Always use a qualified professional to prepare your return.
Preparers should always sign the returns and include their Preparer Tax Identification Numbers (PTIN).
Beware of preparers who encourage you to lie or otherwise modify your information in order to get a bigger refund.
The taxpayer is responsible for what’s on a tax return. Reputable preparers will ask to see receipts and will ask multiple questions to determine whether expenses, deductions and other items qualify. By doing so, they are trying to help their clients avoid penalties, interest or additional taxes that could result from an IRS examination.

Our Credentials

Katharine is an Enrolled Agent