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 U.S.
Department of the Treasury to represent taxpayers before all administrative
levels of the Internal Revenue Service for audits, collections, and appeals.
What does the term Enrolled Agent mean?
"Enrolled" means to be licensed to practice by the federal government, and "Agent" means authorized to appear in the place of the taxpayer at the IRS.
Only Enrolled Agents, attorneys, and CPAs may represent taxpayers before the
IRS. The Enrolled Agent profession dates back to 1884 when, after
questionable claims had been presented for Civil War losses, Congress acted to
regulate persons who represented citizens in their dealings with the U.S.
Treasury Department.
How does one become an Enrolled Agent?
The license is earned in one of two ways, by passing a
comprehensive examination which covers all aspects of the tax code, or
having worked at the IRS for five years in a position which regularly
interpreted and applied the tax code and its regulations. All candidates
are subjected to a rigorous background check conducted by the IRS.
How can an Enrolled Agent help me?
Enrolled Agents advise, represent, and prepare tax returns for individuals,
partnerships, corporations, estates, trusts, and any entities with
tax-reporting requirements. Enrolled Agents' expertise in the continually
changing field of taxation enables them to effectively represent taxpayers
audited by the IRS.
Privilege and the Enrolled Agent
The IRS Restructuring and Reform Act of 1998 allow federally authorized
practitioners (those bound by the Department of Treasury's Circular 230
regulations) a limited client privilege. This privilege allows
confidentiality between the taxpayer and the Enrolled Agent under certain
conditions. The privilege applies to situations in which 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. This
privilege does not apply to state tax matters, although a number of states have
an accountant-client privilege.
Are Enrolled Agents required to take continuing professional
education?
In addition to the stringent testing and application process, the IRS
requires Enrolled Agents to complete 72 hours of continuing professional
education, reported every three years, to maintain their Enrolled Agent status, NAEA members are
obligated to complete 90 hours per three
year reporting
period. Because of the knowledge necessary to become an Enrolled Agent
and the requirements to maintain the license, there are only about 46,000
practicing Enrolled Agents.
What are the differences between Enrolled Agents and other tax
professionals?
Only Enrolled Agents are required to demonstrate to the IRS their competence
in matters of taxation before they may represent a taxpayer before the
IRS. Unlike attorneys and CPAs, who may or may not choose to specialize
in taxes, all Enrolled Agents specialize in taxation. Enrolled Agents are
the only taxpayer representatives who receive their right to practice from the
U.S. government (CPAs and attorneys are licensed by the states).
Are Enrolled Agents bound by any ethical standards?
Enrolled Agents are required to abide by the provisions of the Department of
Treasury's Circular 230, which provides the regulations governing the practice
of Enrolled Agents before the IRS. NAEA members are also bound by a Code
of Ethics and Rules of Professional Conduct of the Association.
Why should I choose an Enrolled Agent who is a member of the
National Association of Enrolled Agents (NAEA)?
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 the 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 and work to make the tax code fair and
reasonably enforced.
Do Enrolled Agents have different levels of expertise?
NAEA sponsors the National Tax Practitioners Institute (NTPI). NTPI is the premier tax
representation training program in the nation. After successfully completing training in a three year program, students earn the coveted designation, NTPI - Fellow.
