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.