Enrolled Agent
What Is Enrolled Agent?
An enrolled agent (EA) is a tax professional authorized by the U.S. Department of the Treasury to represent taxpayers before the Internal Revenue Service (IRS).
Enrolled agents specialize in tax preparation, tax planning, and resolving tax issues with the IRS.
Why It Matters
Enrolled agents have specialized expertise in tax law and can represent individuals and businesses in tax matters, including audits, collections, and appeals.
Their authority allows them to assist taxpayers in navigating complex tax issues.
How Enrolled Agent Works
To become an enrolled agent, individuals must either pass a comprehensive IRS exam or gain qualifying experience as an IRS employee.
Enrolled agents may:
- prepare tax returns
- represent taxpayers during audits
- assist with tax disputes or payment plans
They must also meet continuing education requirements to maintain their credentials.
Example
A taxpayer facing an IRS audit may hire an enrolled agent to review records and represent them during the audit process.
Enrolled Agent vs Certified Public Accountant
- An enrolled agent specializes specifically in tax matters.
- A certified public accountant may provide broader accounting services.
FAQs About Enrolled Agents
Who licenses enrolled agents?
The U.S. Department of the Treasury authorizes enrolled agents.
Can enrolled agents represent taxpayers before the IRS?
Yes. They have unlimited representation rights.
Do enrolled agents prepare tax returns?
Yes. Tax preparation is a common service.
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