An EA is an individual who has demonstrated technical competence
in the field of taxation and can represent taxpayers before
all administrative levels of the Internal Revenue Service.
What does the term "Enrolled Agent" mean?
"Enrolled" means EAs are licensed by the federal government.
"Agent" means EAs are authorized to appear in place of the
taxpayer at the Internal Revenue Service. Only EAs, attorneys
and CPAs may represent taxpayers before the IRS. The Enrolled
Agent profession dates back to 1884 when, after questionable
claims had been presented for Civil War losses, Congress acted
to regulate persons who represented citizens in their dealings
with the Treasury Department.
How can an EA help me?
EAs advise, represent and prepare tax returns for individuals,
partnerships, corporations, estates, trusts and any entities
with tax-reporting requirements. EAs prepare millions of tax
returns in a typical year. EAs' expertise in the continually
changing field of tax law enables them to effectively represent
taxpayers audited by the IRS.
What are the differences between EAs and other tax professionals?
Only EAs are required to demonstrate to the Internal Revenue
Service 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 EAs specialize in matters of taxation. EAs are also the
only taxpayer representatives who receive their right to practice
from the United States government. (CPAs and attorneys are
licensed by the states.)
How does someone become an EA?
The EA designation is earned in one of two ways:
1. An individual must pass a difficult two-day examination
administered by the IRS which covers taxation of individuals,
corporations, partnerships, estates and trusts, procedures
and ethics. Next, the successful candidates are subjected
to a rigorous background check conducted by the Internal Revenue
Service; or
2. An individual may become an EA based on employment at
the Internal Revenue Service for a minimum of five years in
a job where he/she regularly applied and interpreted the provisions
of the Internal Revenue Code and regulations.
Are EAs required to take continuing professional education
(CPE)?
In addition to the stringent testing and application process,
EAs are required to complete 72 hours of CPE, reported every
three years, to maintain their status. Because of the difficulty
in becoming an EA and keeping up the required credentials,
there are fewer than 33,000 EAs in the United States.
Are EAs bound by any ethical standards?
EAs are required to abide by the Standards of Ethical Conduct
as published in U.S. Treasury Department Circular 230. EAs
found to be in violation of the provisions contained in Circular
230 may be suspended or disbarred.
Why should I choose an EA who is a member of the National
Association of Enrolled Agents (NAEA)?
NAEA is the organization of and for EAs. The principal concern
of the Association and its members is honest, intelligent
and ethical representation of the financial position of taxpayers
before governmental agencies.Members of NAEA are required
to complete a minimum of 30 hours of continuing professional
education each year in the interpretation, application and
administration of federal and state tax laws in order to maintain
membership in the organization. This requirement surpasses
the IRS' required minimum of 16 hours per year.
How can I find an EA?
To locate an EA in California, check the referral
directory, look in the telephone yellow pages under "tax
preparation" or call the California Society of Enrolled Agents
at 1-800-829-7765 (or 1-800-TAX-PRO5). You may also call the
NAEA 24-hour referral service at 800-424-4339 or write the
National Association of Enrolled Agents for the names and
addresses of members located in your area. The NAEA membership
list of over 10,000 EAs nationwide is available online via
the Tax Channel.
