What is an Enrolled Agent (EA)?
What does the term Enrolled Agent mean?
Enrollment dates back to 1884, when Congress acted to regulate persons who represented citizens in their dealings with the Treasury Department, after questionable claims had been presented for Civil War losses.
"Enrolled" simply means EAs are licensed by the federal government. "Agent" means EAs are authorized to represent or appear in place of the taxpayer at the Internal Revenue Service. Only Enrolled Agents, attorneys and CPAs may do so.
What exactly do Enrolled Agents do?
Unlike attorneys and CPAs, Enrolled Agents specialize in taxation. Throughout the year, they advise, represent and prepare tax returns for individuals, partnerships, corporations, estates, trusts and any entities with tax-reporting requirements. Enrolled Agents' expertise in the constantly changing field of tax law enables them to be effective representatives when the IRS seeks to audit, collect tax liabilities, enforce collection (Liens and Levies), or when the taxpayer desires to seek an Installment Agreement or Offer in Compromise to resolve a tax liability.
How do Enrolled Agents differ from other tax experts?
EAs are the only practitioners who have demonstrated competence specifically in matters of taxation. Also, they are the only representatives for taxpayers who receive that right from the U.S. Government and thus may practice anywhere in the US. (CPAs and attorneys are licensed by the individual states.)
Are there other requirements?
In addition to the stringent two-day testing and detailed application process, Enrolled Agents are required to earn 72 hours of continuing professional education, reported to the IRS Director of Practice, every three years, to maintain their licensed status.