In 2018, the federal government of the United States received $3.33 trillion in tax revenue. Income tax is the most important thing that Americans need to manage as it drives the country’s economy.
The U.S. tax code is highly intricate. Americans need professional help when filing their tax returns.
The enrolled agent is a highly specialized tax professional. They are trained by the Internal Revenue Service to help Americans with their taxes. Their help is beneficial for small businesses.
What is an enrolled agent? Here is everything you need to know about these tax specialists.
What Is an Enrolled Agent and What Do They Do?
The IRS authorizes the enrolled tax agent in behalf or for the taxpayers before the agency. Enrolled agents, like lawyers and CPAs, are bound by a code of ethics to provide honest and ethical representation.
Enrolled agents have demonstrated expertise in tax laws and are required to complete continuing education courses to keep up with changes in the tax code. They can represent taxpayers at all levels of the IRS, from audits to appeals and collections.
Whether you’re an individual or a business, if you have tax problems, an enrolled agent can help you resolve them.
History of Enrolled Agents
Enrolled agents are tax professionals who the U.S. Department of the Treasury allows as a representative for the taxpayers when dealing with administrative level types of transactions with the IRS. They are the only tax practitioners who receive this federal credential.
The enrolled agent started as a profession way back in 1884. This was the time when Congress first authorized practitioners to represent clients before the IRS. The first regulations governing enrolled agents were promulgated in 1931.
The Path to Becoming an Enrolled Agent
An enrolled agent is a person who the U.S. Treasury Department has appointed to represent taxpayers before the IRS. Enrolled agents, also known as E.A.s, are tax professionals with demonstrated technical expertise in taxation.
To become an enrolled agent, candidates must pass a three-part examination administered by the IRS. The study tests a candidate’s knowledge of tax law and IRS procedures. Candidates who pass the examinations and meet other requirements set by the IRS are granted enrollment status.
Advantages of Working With Them
Enrolled agents are tax experts and can provide taxpayers with the best possible representation before the IRS. They are also familiar with IRS procedures and can help taxpayers navigate the complex tax code.
Working with an enrolled agent has advantages over working with a CPA or attorney. Enrolled agents can help you if you have concerns with regards to currently not collectible status.
An enrolled agent can help you with a wide range of tax matters, including preparing and filing your return, representing you during an audit, and helping you navigate complex tax laws. When choosing an enrolled agent, it’s essential to choose someone you can trust who has experience dealing with the IRS.
Choose the Best Enrolled Agent
Enrolled agents are tax professionals who have demonstrated technical competence in tax matters through successful completion. If you are looking for someone to help you with your taxes, consider hiring an E.A. They are qualified and equipped to handle even the most complex tax situations.
For more helpful tips, check the rest of our blog.
