What is an Enrolled Agent?

An Enrolled Agent (EA) is a tax professional authorized by the U.S. Department of the Treasury to represent taxpayers before the Internal Revenue Service (IRS). This elite status is the highest credential the IRS awards to tax professionals, and it is earned by passing a rigorous three-part examination or through experience as a former IRS employee. Enrolled Agents are experts in tax planning, preparation, and representation, and they must adhere to strict ethical standards and complete continuing education requirements.

Qualifications for Becoming an Enrolled Agent

1. Preparer Tax Identification Number (PTIN): You will need a PTIN from the IRS. Make sure to renew your PTIN each year to stay active.
2. Special Enrollment Examination (SEE): Pass all three parts of the SEE/Enrolled Agent Examinations, which covers individual and business tax returns in detail, as well as IRS representation, practices, and procedures.
3. Application for Enrolled Agent: After passing all 3 exams, you will need to complete an application for enrollment (Form 23) and pay the required fee. It will take about 60 days to process and receive your official Enrolled Agent status with the IRS.
4. Background Check: You will need to pass a suitability check, which includes a comprehensive review of tax compliance and a criminal background check.
5. Complete Ongoing Continuing Education: This step is critical. To maintain your status as an enrolled agent, you will need to complete 72 hours of continuing education every three years.

Benefits of Hiring an Enrolled Agent

1. Expert Representation: Enrolled Agents (EAs) have the authority to represent taxpayers before the IRS in audits, collections, and appeals, providing expert guidance and advocacy.
2. Comprehensive Tax Knowledge: With their extensive training and continuing education, EAs are well-versed in the latest tax laws and regulations, ensuring accurate and effective tax planning and preparation.
3. Ethical Assurance: EAs adhere to a strict code of ethics, giving clients confidence in their integrity and professionalism.
4. Personalized Service: EAs can offer tailored tax advice and solutions based on individual or business needs, helping clients maximize their tax benefits and minimize liabilities.
5. Year-Round Availability: Unlike seasonal tax preparers, EAs are available year-round to assist with tax issues, providing ongoing support and peace of mind.

Hiring an Enrolled Agent ensures that you have a knowledgeable and ethical tax professional on your side, capable of navigating the complexities of the tax system and representing your best interests before the IRS. For a FREE consultation with an Enrolled Agent at Citrine Accounting & Taxes, schedule your appointment here or call (602)601-0183.