Enrolled agent
An enrolled agent (or 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. They are the only federally-licensed tax practitioner who specializes specifically in taxation and also has unlimited rights to represent taxpayers before the IRS. [1]
To become an enrolled agent, an applicant must pass the Special Enrollment Examination, a comprehensive examination which covers all aspects of the tax code, or have worked at the IRS for five years in a position which regularly interpreted and applied the tax code and its regulations. A background check, including a review of the applicant’s tax compliance, is conducted. The IRS also requires enrolled agents to complete 72 hours of continuing professional education every three years.
The position of enrolled agent was created as a reaction to fraudulent war loss claims in the wake of the American Civil War. Unlike today, the first "EAs" were appointed with little or no qualifications other than a minimal background in bookkeeping.
According to the National Association of Enrolled Agents there are currently about 48,000 practicing EAs in the United States.
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[edit] Practice before the Internal Revenue Service: Enrolled Agents and other practitioners
The right to practice before the Internal Revenue Service is regulated by Federal statute[2], and persons authorized to practice are known as "Federally Authorized Tax Practitioners,"[3] or "FATPs". The FATP status is granted to attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and to persons in a few other categories.
Enrolled agents, like other FATPs, are subject to a set of procedures and regulations described in Treasury Department Circular No. 230, Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers before the Internal Revenue Service[4] (or Circular 230). FATPs are allowed to represent taxpayers in all proceedings before the Internal Revenue Service including audits and appeals.
When practicing before the Internal Revenue Service, enrolled agents may not utilize the word "certified." Furthermore, enrolled agents practicing before the Internal Revenue Service may not imply an employer/employee relationship with the Internal Revenue Service.
[edit] Practice in the United States Tax Court
Enrolled agent status does not automatically allow the enrollee to practice before the United States Tax Court. That practice is limited to members of the Bar of the Court. The Internal Revenue Code states that "[n]o qualified person shall be denied admission to practice before the Tax Court because of his failure to be a member of any profession or calling."[5] Bar membership for non-attorneys requires that the applicant pass a Tax Court examination. Attorneys are admitted to the Bar of the Tax Court without having to take the examination.
Practice before the United States district courts, bankruptcy courts, courts of appeal, and Supreme Court of the United States is limited to attorneys.
[edit] Notes
[edit] See also
- Tax advisor
- Tax professional
- American Society of Tax Problem Solvers
- National Association of Enrolled Agents (NAEA)
[edit] References
- U.S. Internal Revenue Service. Enrollment overview. Retrieved January 30, 2006.
- National Association of Enrolled Agents NAEA
- Whittington, O. Ray and Delaney, Patrick R. Wiley CPA Exam Review: Regulation. Professional and Legal Responsibilities. p. 55. John Wiley and Sons. 2012.
