What Is An Enrolled Agent?

What does the designation “Enrolled Agent” mean?

As an Enrolled Agent, Linda is a Federally licensed tax practitioner by the U.S. Treasury Department. Enrolled Agents specialize in taxation and have unlimited rights to practice and represent taxpayers before the IRS. “Enrolled” means to be licensed to practice by the Federal government, and “Agent” means authorized to appear in the place of the taxpayer before the IRS. Only Enrolled Agents, attorneys, and CPAs are recognized to 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: (1) by passing a comprehensive two-day special enrollment examination which covers all aspects of the IRS Tax Code relating to individuals, businesses, trusts, estates, and tax practice, or (2) by working for the IRS for five years in a position which involves regularly interpreting and applying the IRS Tax Code and its regulations. All candidates are subject to a rigorous background check conducted by the IRS. Linda earned the Enrolled Agent designation by successfully passing the two-day special enrollment examination on her first attempt in 1996.

How can an Enrolled Agent help me?

Enrolled Agents advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, nonprofit organizations, and any entity that has a tax-reporting requirement. The expertise of Enrolled Agents in the continually changing field of taxation enables them to effectively represent taxpayers at all administrative levels within the IRS.

What are the differences between Enrolled Agents and other tax professionals?

Only Enrolled Agents are required to demonstrate to the IRS their competence in all areas of taxation, representation and ethics before they are given unlimited representation rights before IRS. Attorneys and CPAs are licensed to practice in a specific state and may or may not choose to specialize in taxes.  All Enrolled Agents specialize in taxation and are licensed by the U.S. Treasury Department, so can practice in every U.S. state.

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 the honest, intelligent, and ethical representation of the financial position of taxpayers before the IRS and state tax 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 IRS Tax Code fair and reasonably enforced.

For more information about our tax services, contact our office today at (727) 391-7373