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The Tax Professionals.
What is an Enrolled
Agent?
Enrolled Agents (EAs) are professional tax practitioners
who have technical expertise in the field of taxation and are enrolled
to represent taxpayers before the Internal Revenue Service at all
administrative levels. In addition, EAs are the only tax practitioners
required by federal law to maintain their expertise through continuing
professional education. When you need up-to-date tax assistance,
see an EA.
What does the term
"Enrolled Agent" mean?
"Enrolled" means EAs are licensed by
the federal government. "Agent" means EAs are authorized
to appear in place of the taxpayer at the Internal Revenue Service.
Only EAs, 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 Ware losses, Congress
acted to regulate persons who represented citizens in their dealings
with the Treasury Department.
How
can an EA help me?
EAs advise, represent and prepare tax returns
for individuals, partnerships, corporations, estates, trusts and
any entities with tax-reporting requirements. EAs prepare millions
of tax returns in a typical year. EAs' expertise in the continually
changing field of tax law enables them to be effective representatives
when taxpayers are audited by the IRS.
What are the critical
differences between EAs and other tax professionals?
Only EAs are required to demonstrate competency
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 EAs specialize in matters of taxation.
EAs are also the only taxpayer representatives who receive their
right to practice from the United States government, (CPAs and attorneys
are licensed by the states.)
How does one become an
EA?
The EA designation is earned in one of two ways:
(1) an individual must pass a difficult two-day examination which
covers taxation of individuals, corporations, partnerships, estates
and trusts, procedures and ethics. Next, the successful candidates
are subjected to a rigorous background check conducted by the Internal
Revenue Service, or (2) an individual may become an EA based on
employment at the Internal Revenue Service for a minimum of five
years in a job where he/she regularly applied and interpreted the
provisions of the Internal Revenue Code and regulations.
Are EAs required to take
continuing professional education (CPE)?
In addition to the stringent testing and application
process, EAs are required to complete 72 hours of CPE, reported
every three years, to maintain their status. Because of the difficulty
in becoming an EA and keeping up the required credentials, there
are fewer than 30,000 EAs in the United States.
Are EAs bound by
any ethical standards?
EAs are required to abide by the Standards
of Ethical Conduct as published in U.S. Treasury Department Circular
230. EAs found to be in violation of the provisions contained in
Circular 230 may be suspended or disbarred.
If you have additional questions about R.C.
Martin and Associates and Enrolled Agents please contact
us.
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