TABLE OF CONTENTS
- The Enrolled Agent
- Modern Tax Planning
- The Key Role of an Enrolled Agent
Roles and Responsibilities of an Enrolled Agent
Benefits of Hiring an Enrolled Agent
When to Consult an Enrolled Agent - Get that Enrolled Agent Certification Today
- Conclusion
- FAQs
The Enrolled Agent
The enrolled agent profession goes back to 1884 when, after questioning claims for losses during the Civil War, Congress acted to regulate those who represented citizens in dealing with the US Treasury Department. Since then, the expertise of an enrolled agent continuously evolved, enabling them to represent taxpayers at all administrative levels before the IRS.
Enrolled agents are certified by taking and passing the SEE or the Special Enrollment Examination which covers all aspects of individual and business law. Moreover, the exam also covers issues around tax practices, procedures, and representation. All enrolled agents have passed a background check, reassuring you of dealing with someone who knows tax laws inside out.
Modern Tax Planning
Today’s tax planning blends business acumen and technology to focus on compliance, consistency, and strategic objectives. Moreover, careful planning is critical for business success in today’s unpredictable global economy. Modern tax planning is also necessary for individuals facing challenges, such as owning, managing, and preserving wealth and businesses in a complex regulatory landscape.
Navigating the complexities of tax and maximizing deductions requires expertise, strategic planning, and adherence to regulations. Engaging with financial experts is also equally important. By staying proactive and using available resources organizations and individuals can minimize tax burdens, achieve financial stability, and maximize savings in the dynamic landscape today.
The Key Role of an Enrolled Agent
For accounting graduates looking to carve out a successful career, becoming an EA or Enrolled Agent offers a rewarding and unique opportunity. As tax laws are becoming more complex, the demand for highly skilled tax professionals is on the rise. The designation puts one as a top-tier expert in taxation.
EAs can serve clients in all fifty states in America with their unlimited practice rights, which makes it the most versatile credential in the taxation landscape. Moreover, the EA certification provides a direct path to lucrative roles in tax advisory, preparation, corporate tax departments, or even private practice.
Roles and Responsibilities of an Enrolled Agent
EAs have diverse roles and responsibilities to meet the needs of the clientele and comply with the rules and regulations of the Internal Revenue Service. Below are some of the roles and responsibilities of an EA.
- Represent taxpayers (clients) with their IRS taxes.
- Perform audits and appeals on behalf of the clients.
- Maintain confidentiality on personal documents and tax information.
- Provide tax advice in adherence with the IRS rules and regulations.
- Complete basic accounting tasks, like reviewing bank statements and updating financial records.
- Teach clients about tax laws and regulations and their impact on businesses.
- Check with previous clients to provide further services.
- Pursue yearly continued education courses to maintain the license.
- Helps clients identify possible liabilities on their balance sheet.
- Creates a tax plan for future use by clients.
Benefits of Hiring an Enrolled Agent
As the economy continues to evolve, taxation also evolves continuously. These days, individuals and businesses are looking to hire the services of an EA to help them streamline tax planning, preparation, and other things about tax payments. The demand has paved the way for the escalation of the need to get a tax expert to help in tax matters.
Let’s find out some of the ways that hiring an EA is beneficial to individuals and businesses.
1. Focus on other business aspects
An EA helps with tax preparation and other accounting requirements, thus allowing you to focus more on other aspects of your business, such as marketing and sales, employee onboarding, or daily operations.
2. Provides extensive tax expertise
Since enrolled agents have the highest credentials that a tax professional can receive, they can provide expert services to clients anywhere. This, along with continued education requirements means that they’re updated on the latest tax matters and have advanced knowledge in anything related to taxation.
3. Helps organizations instead of accounting departments
For those operating a sole proprietorship or small business, an EA can help perform duties that normally would be designated to members of the accounting department. For instance, EAs can help prepare and file taxes on your tax return.
When to Consult an Enrolled Agent
There are specific instances where the expertise of an enrolled agent is indispensable. If you have to deal with an IRS audit, an EA can guide you through the process to ensure that you provide the proper documentation and effectively defend your position. In the same way, if you are dealing with a tax lien or unpaid taxes, an EA will be able to negotiate on your behalf payment offers or plans.
Often, business owners benefit from hiring the services of an EA to handle deductions, payroll taxes, and tax compliance. For individuals with complex tax scenarios, like for instance managing investments or owning rental properties, the advice of an enrolled agent can help in optimizing tax strategy while steering clear of pitfalls.
Get that Enrolled Agent Certification Today
Check out the items below to get an enrolled agent certification and be one of the tax experts who enjoy great demand across the United States of America.
1. Review the Certification Requirements
The Enrolled Agent certification is open to individuals who:
- Get a Preparer Tax Identification Number
- Apply to the IRS
- Earn a passing score on the Associated Exam
2. Get your PTIN
- Set up an online account on the website of the IRS.
- Accomplish an online application and provide your social security number, personal information, business information if applicable, previous year’s tax return, and professional certification information.
- Pay the associated fee
3. Start studying for the SEE (Special Enrolled Examination)
You can enroll in an enrolled agent prep course to help you pass the three-part IRS Enrolled Agent exam. The three parts can be taken in any order, with the only requirement being to pass all of them within two years. The three parts include Individuals, Businesses, and Representation, Practices, and Procedures.
4. Register for the Exam
You can register online through Prometric Testing in which the IRS partners provide the test. Although registration occurs online, the exam can be taken in one of the many testing sites available all over the country and internationally. Usually, the exam takes place between May and February.
5. Take the Exam
When you have registered and are ready, you can begin with any of the three parts. There are 100 questions each for every part and most have three multiple-choice answers.
6. Register with the IRS
After passing all three parts within three years, you can apply to become an enrolled agent with the IRS by completing an application on the Pay.gov website and paying a corresponding fee. Moreover, passers should also pass a tax compliance check that allows the IRS to see if there are any outstanding tax returns or liabilities.
7. Maintaining the Credential
EAs need continuing education after earning their credential. 72 hours of continuing education courses should be completed every couple of years, with at least 16 hours every year. Two of the continuing education hours must focus on ethics.
Conclusion
Enrolled agents are more than just tax preparers—they’re also expert trusted advisors on anything about tax. For those looking to embark on this career path, Acquaint Academy offers extensive enrolled agent classes, the right EA exam prep, and more, which are designed to help you pass the SEE and gain hands-on experience with tax cases in the real world.
FAQs
Q. What are the Benefits of being an EA?
Ans. It has countless benefits because enrolled agents are recognized as top tax experts, thus they enjoy a growing demand year after year.
Q. What is the Enrolled Agent Course?
Ans. The course includes a huge range of subjects that span individual taxation, business tax practices, and laws for IRS representation.
Q. How is an EA different from a CPA?
Ans. An enrolled agent focuses specifically on taxation. A CPA can specialize in taxation as well as other accounting and financial matters.
Q. Can I work while studying for the EA exam?
Ans. Yes. Candidates can work while studying for the exam.
Q. Is the EA designation recognized internationally?
Ans. Although not commonly recognized on an international level, the designation is greatly recognized in the United States.
Q. What is the Purpose of an EA?
Ans. The main purpose of an enrolled agent is to represent taxpayers before the IRS.
Q. Who is Eligible for EA?
Ans. Unlike most professions, there are no strict educational requirements to become an EA. A basic 12th-standard education would suffice as long as one has a PTIN that demonstrates tax law expertise.
Q. Is a CPA higher than an EA?
Ans. An EA is a tax practitioner licensed at the IRS federal level. Moreover, the EA status is the highest credential awarded by the IRS. A CPA, on the other hand, is licensed by the applicable state boards of accountancy.