What is an Enrolled Agent?

An Enrolled Agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.

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 the place of the taxpayer at the IRS. Only Enrolled Agents, 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 War losses, Congress acted to regulate persons who represented citizens in their dealings with the U.S. Treasury Department.

How can Enrolled Agent help me?

Enrolled Agents advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with
tax-reporting requirements. Enrolled Agents' expertise in the continually changing field of taxation enables them to effectively represent taxpayers audited by the IRS.

Are Enrolled Agents required to take continuing professional education?

In addition to the stringent testing and application process, the IRS requires Enrolled Agents to complete 72 hours of continuing professional
education, reported every three years, to maintain their Enrolled Agent status. Because of the knowledge necessary to become an Enrolled Agent and the requirements to maintain the license, there are only about 46,000 practicing Enrolled Agents.

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

Only Enrolled Agents are required to demonstrate to the IRS their competence 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 Enrolled Agents specialize in taxation. Enrolled Agents are the only taxpayer representatives who receive their right to practice from the U.S. government (CPAs and attorneys are licensed by the states).

Are Enrolled Agents bound by any ethical standards?

Enrolled Agents are required to abide by the provisions of the Department of Treasury's Circular 230, which provides the regulations governing the
practice of Enrolled Agents before the IRS.

The myth that the best person to do my taxes is a CPA (Certified Public Accountant) or lawyer, that's old school and I'm tired of hearing it. The best person to do your Taxes is an EA.

Why?

A CPA is not necessarily an expert in taxes, where as an EA we specialize in taxes. A CPA can do many things regarding accounting such as auditing and certify financial statements, but very few only do taxes.

EA's get their authority to represent taxpayers by the federal government. CPA's and Lawyers are granted their authority by the states' boards of accountancy or bar association. All three groups are governed by Circular 230 "Rules Governing the Practice before the Internal Revenue Service"

Because CPA's are regulated at the state level; the amount of taxation continuing education can vary from state to state. EA's are required to take 72 hours of continuing education every 3 years to maintain their certification.

So my opinion is that the EA are better they specialize in taxation. If you want to pursue other areas of accounting, the CPA is better.

The registered tax preparer is simply an individual who fills in the blanks on your tax return. They have very limited if any education on taxes.