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.
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.
Privilege and the Enrolled
Agent
The
IRS Restructuring and Reform Act of 1998 allow federally
authorized practitioners (those bound by the Department of
Treasury’s Circular 230 regulations) a limited client
privilege. This privilege allows confidentiality
between the taxpayer and the Enrolled Agent under certain
conditions. The privilege applies to situations in
which the taxpayer is being represented in cases involving
audits and collection matters. It is not applicable
to the preparation and filing of a tax return. This
privilege does not apply to state tax matters, although a
number of states have an accountant-client
privilege.
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. NAEA members are also bound by a Code
of Ethics and Rules of Professional Conduct of the
Association.
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 honest, intelligent and ethical
representation of the financial position of taxpayers
before the governmental 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 tax code fair and
reasonably enforced.