What is an Enrolled Agent?

When people find out I have my own firm, they often assume I am a CPA, or Certified Public Accountant, which I am not. To clear up this misunderstanding, read on about the nature and history of Enrolled Agents.

What is an Enrolled Agent?

Enrolled agents (EAs) are federally-authorized tax practitioners who have demonstrated technical competence in tax law and are the only taxpayer representatives licensed to practice by the United States government. Only EAs, attorneys, and CPAs may represent taxpayers without limitation before the IRS. EAs advise and represent taxpayers who are being examined by IRS, taxpayers who are unable to pay, and taxpayers who wish to avoid or recover penalties. EAs may prepare tax returns for individuals, partnerships, corporations, estates, trusts and any other entities with tax-reporting requirements. Unlike attorneys and CPAs, who may or may not choose to specialize in taxes, all EAs specialize in taxation and are required by the federal government to maintain their professional skills with continuing professional education.

This means that I am authorized to practice before the IRS - a fancy way of saying that I can represent you in an audit at every level prior to court, the same as a CPA who is not an attorney. I am not able, however, to provide any services that require accountancy licensing, such as the compilation or attestation of financial statements.

History of Enrolled Agents

After the Civil War, many citizens had problems settling claims with the government for horses and other property confiscated for use in the war effort. After many petitions and much pleading, Congress, in 1884, endowed enrolled agents with the power of advocacy to prepare claims against the government and to seek equitable justice for the citizenry. For many years, the purpose of the enrolled agent was to act in this capacity.

In 1913, when the income tax was passed, the job of the enrolled agent was expanded to include claims for monetary relief for citizens whose taxes had become inequitable. As the income tax, estate, gift and other sources of tax collections became more complex, the role of the enrolled agent increased to include the preparation of the many tax forms that were required. Additionally, as audits became more prevalent, their role evolved into taxpayer advocacy and negotiating with the Internal Revenue Service on behalf of their clients.

If you have any questions about the EA credential or whether I can serve your needs, I would be happy to discuss it with you. Set up an appointment by filling out the form on my contact page today!