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WHAT IS AN ENROLLED AGENT?
An enrolled agent (EA) is a federally licensed tax practitioner who has
technical expertise in the field of taxation and is empowered by the U.S.
Department of the Treasury to represent taxpayers for audits, collections and
appeals before all administrative levels of the Internal Revenue Service.
WHAT ARE
THE DIFFERENCES BETWEEN ENROLLED AGENTS AND OTHER TAX PREPARERS?
Only enrolled agents demonstrate their competence in matters of taxation and
report their hours of continuing professional education to the IRS.
IRS Enrolled agents are the only taxpayer representatives who receive
their right to practice directly from the U.S. government (certified public
accountants and attorneys are licensed by Individual States and their licenses
are state specific). Unlike attorneys and certified public accountants, who may
or may not choose to focus on taxes, all enrolled agents specialize in taxation.
WHY
SHOULD I CHOOSE AN ENROLLED AGENT WHO IS A MEMBER OF THE NATIONAL
ASSOCIATION OF ENROLLED AGENTS (NAEA)?
The principal concern of NAEA and its members is honest,
intelligent and ethical representation of the financial position of taxpayers
before government agencies.
Members of NAEA
must fulfill continuing Professional Education requirements that exceed
IRS standards. In addition
NAEA members adhere to a
stringent code of ethics and rules of professional conduct 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 on behalf of taxpayers to see that the tax
code is fairly applied and reasonably enforced.
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 place of the taxpayer before IRS. Only
enrolled agents, attorneys and certified public accountants may represent
taxpayers before IRS. The enrolled agent profession dates back to 1884 when,
after questionable claims were presented for Civil War losses, Congress acted to
regulate persons who represented citizens in their dealings with the U.S.
Department of the Treasury.
PRIVILEGE
AND THE ENROLLED AGENT
The IRS Restructuring and Reform Act of 1998 provides limited client privilege
for federally authorized practitioners (those bound by the Treasury Department?s
Circular 230 regulations). This privilege allows confidentiality between the
taxpayer and the enrolled agent when 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. Ask your
enrolled agent how privilege may affect you.
ARE
ENROLLED AGENTS REQUIRED TO TAKE CONTINUING PROFESSIONAL EDUCATION?
In addition to the stringent testing and application process, IRS requires
enrolled agents to complete 72 hours of continuing professional education every
three years to maintain their licenses. NSA members are obligated to complete 90
hours in each three year period. Due to the expertise necessary to become an
enrolled agent and the requirements to maintain the license, there are only
about 40,000 practicing enrolled agents.
ARE
ENROLLED AGENTS BOUND BY ETHICAL STANDARDS?
Yes. Enrolled agents are required to abide by the provisions of the Treasury
Department?s Circular 230 which provides the regulations governing the practice
of enrolled agents before IRS. NAEA members are also bound by a code of ethics
and rules of professional conduct.
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