What Is An Enrolled Agent?

What Is An Enrolled Agent - Accountants

Do you know a reliable enrolled agent? Or, are you still asking yourself: What is an enrolled agent?

This is an important question to consider, especially when it comes to tax time. These professionals can be an enormous resource in unwinding any tax issues you may have. Here is a little bit of information on what enrolled agents are and what they do.

What Is An Enrolled Agent?

Similar to a Certified Public Account or attorney, enrolled agents are licensed by the United State Department of Treasury to help represent tax payers when they are up against the Internal Revenue Service. However, CPAs and attorneys are licensed by their respective state, while enrolled agents are directly licensed from the federal government. Enrolled agents also must specialize in taxation, while some attorneys might not be experts in that area.

This, in a nutshell, puts them at the top tier of tax professionals.

When an enrolled agent represents a taxpayer in a tax case, they are granted by the federal government a confidentiality privilege. That means whatever information is exchanged between the enrolled agent and the tax payer can remain private.

How Does Someone Become An Enrolled Agent?

Again, much like CPAs, enrolled agents must past an extensive test to prove that they have a wide knowledge of every aspect of taxation. Enrolled agents do not have a specialized area of taxation in which they are experts. They have to have a very broad knowledge in order to appropriately represent any tax payer.

However, professionals who have worked in certain positions with the IRS for five years or more are automatically eligible to become enrolled agents.

Why Might I Need An Enrolled Agent?

Enrolled agents can represent you for an audit or collection. They can also do something so simple as prepare tax returns for you as an individual or for your business. They generally are a rock-solid resource about anything that has to do with taxes.

Where Can I Find One?

There are a number of resources you could use to find an enrolled agent, but TalkLocal can help you cut through that lengthy search. Use our service, specify that you are looking for an enrolled agent, and we will connect you with one in your area immediately.

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