What is an Enrolled Agent?

An Enrolled Agent (EA) is a federally-authorized tax practitioner who has demonstrated technical expertise in tax law and preparation.

Enrolled Agents are the only tax professionals who receive the right to represent taxpayers directly from the US government. They are licensed by the Internal Revenue Service (IRS) after passing a comprehensive examination, and this licensing allows them to represent taxpayers before the IRS in all matters, including audits and appeals.

To become an Enrolled Agent, an individual must either:

• Pass the Special Enrollment Examination (SEE), an exam covering individual taxation, business taxation, and representation, practice, and procedures
• Have experience as a former IRS employee in a position that involved applying and interpreting tax laws

Additionally, Enrolled Agents must complete continuing education requirements annually to maintain their license.

NOTE
Enrolled Agents provide a wide range of tax services, including tax preparation, planning, advice, and representation before the IRS. They can work for accounting firms, tax preparation firms, or maintain their own independent practices.

Frequently asked questions

What is the difference between an Enrolled Agent and a Certified Public Accountant (CPA)?

The primary difference between an EA and a CPA is the scope of their licenses and the focus of their expertise.

CPAs are licensed by state boards and are qualified to provide a wide range of accounting services, including auditing, financial reporting, and tax preparation.

Enrolled Agents are licensed by the IRS and specialize in taxation, including tax law, tax preparation, and representation before the IRS.

Can Enrolled Agents represent clients in court?

No, Enrolled Agents can’t represent their clients in court. EAs are authorized to represent taxpayers in matters before the IRS, including audits, collections, and appeals proceedings.

If a tax case proceeds to court, an Enrolled Agent may need to collaborate with an attorney or a CPA who holds a license to practice law.

Do Enrolled Agents need to renew their license regularly?

Yes, Enrolled Agents are required to renew their license regularly and meet continuing education requirements set by the IRS.

Typically, EAs must complete a minimum of 72 hours of continuing education every three years, with a minimum of 16 hours per year. This ensures that they stay up-to-date with the latest tax laws, regulations, and practices.