What is an Enrolled Agent?
An enrolled agent (EA) is a federally licensed tax practitioner who has technical expertise in the field of taxation and is empowered by the U.S. Department of the Treasury to represent taxpayers for audits, collections and appeals before all administrative levels of the Internal Revenue Service.
So what is the difference between EA’s and other Tax Professionals?
The major difference is that EA’s have to demonstrate their competence in matters of taxation and report their hours of continuing professional education to the IRS. EA’s are the only taxpayer representatives who received their right to practice directly from the US Govt. In other words, all EA’s specialize in taxation.
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 place of the taxpayer before IRS. Only enrolled agents, attorneys and certified public accountants may represent taxpayers before IRS. The enrolled agent profession dates back to 1884 when, after questionable claims were presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings with the US Department of the Treasury.
Are Enrolled Agents required to take continuing professional education?
In addition to the stringent testing and application process, IRS requires enrolled agents to complete 72 hours of continuing professional education every three years to maintain their licenses. NAEA (National Association of Enrolled Agents) member are obligated to complete 90 hours in each three year period. Due to the expertise necessary to become an enrolled agent and the requirements to maintain the license, there are only about 40,000 practicing enrolled agents.
Are Enrolled Agents bound by ethical standards?
Yes. Enrolled agents are required to abide by the provisions of the Treasury Department’s Circular 230 which provides the regulations governing the practice of enrolled agents before IRS. NAEA members are also bound by a code of ethics and rules of professional conduct.