What is an Enrolled Agent (EA) and why do you need one?
You’re likely reading this because you have a tax problem and are wondering what kind of tax resolution specialist would be best-suited to fix things for you and solve your tax debt.
There are only three titles that can represent taxpayers: enrolled agents, CPAs, and tax attorneys.. Maybe you’re heard the title Enrolled Agent, but you’re not sure what an EA offers you compared to a CPA or tax attorney. I’ll explain and introduce myself: I’m an enrolled agent, and I fix tax problems for my clients, and have done so – quite successfully, if I might add – for a long time.
The reason I’m on your radar right now is I’d like you to have a better understanding of what an enrolled agent is and does, and why my title makes a big difference for you, in solving your tax problem.
Though there are other tax professionals like tax attorneys and CPAs, the services of an enrolled agent are far-reaching and extensive in resolving your IRS-related tax issues. As an EA, unlike CPAs, I have the widest array of tools in my toolkit in dealing with the IRS, and unlike tax attorneys, enrolled agents are more cost-effective and affordable. These two points alone make hiring an EA to solve your tax matter your best choice in almost all tax debt resolution situations.
Let’s take a deeper dive to explore what an Enrolled Agent is
Enrolled agents (EAs) truly are tax experts. We are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS – we speak their language and we know how to get things done.
Licensing makes EAs unique in our ability to deal directly with the IRS
Enrolled agents, like tax attorneys and CPAs, are tax professionals – but the key difference is, EAs are licensed, whereas the other tax professionals aren’t. As such, our licensing allows us to represent taxpayers in their dealings with the IRS. We are savvy specialists in dealing with IRS-related matters because EAs must establish their competence to represent taxpayers before the IRS to qualify for their license.
To become an EA, tax professionals are required to work with the IRS for five years and/or pass a series of tough tests conducted by the IRS to establish their competence to represent taxpayers before the IRS to demonstrate their ability. Because of what it takes to get licensed, EAs know the IRS inside and out.
Enrolled agents are licensed by the US government (not individual states), so we can practice all across the country. Enrolled agents are also required to undergo a rigorous background check and regularly take many hours of continuing professional education (CPE) to stay up to date.
Because of these specific qualifications, you should most definitely consider an enrolled agent for your tax problem, especially if the nature of the problem is related to areas like unpaid back taxes, IRS audit representation or to counter an impending tax lien or tax levy on your account. Myself and my team of EAs are more cost-effective than a tax attorney and they are more skilled at dealing with the IRS than a CPA.
EAs know all aspects of tax matters, well beyond tax debt
Enrolled agents’ expertise in the continually changing field of taxation enables them to effectively represent taxpayers at all administrative levels within the IRS, particularly regarding tax debt resolution matters. And when not solving tax debt matters, enrolled agents also advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements.
You have client privilege with an enrolled agent
The IRS Restructuring and Reform Act of 1998 allows federally authorized practitioners (those bound by the Department of Treasury’s Circular 230 regulations) a limited client privilege. This privilege allows confidentiality between the taxpayer and the enrolled agent under certain conditions. The privilege applies to situations in which the taxpayer is being represented in cases involving audits and collection matters. It is not applicable to the preparation and filing of a tax return. This privilege does not apply to state tax matters, although a number of states have an accountant-client privilege.
So by now, you can see there are many, many advantages to hiring an EA for all of your tax needs.
Some key points I’d like you to consider:
- EAs are not bound by geography
EAs can represent you for audit in any state within the US. You’ll, therefore, have someone in your corner to take care of your tax needs wherever you’re located in the US.
- Specialized knowledge of the federal tax code
For an individual to get the EA license, they must have either worked with the IRS for a couple of years or have passed a rigorous 3-part exam covering individual and corporate taxes and ethics.
This means that EAs are extremely knowledgeable in the complicated federal tax codes that often get businesses and individuals under IRS lenses. EAs also understand the technical requirements, ensuring that your returns have lower risks of getting audited, fined, or worse.
- EAs understand all taxation requirements to keep you covered
EAs are the most elite tax experts in the country with extensive knowledge of the tax code, how it applies to the client, and how any change can affect the client’s liability. We are always learning about changes in the tax code, ensuring that we keep you properly covered. A CPA, on the other hand, will only be dealing with general tax issues and likely to overlook tax changes that could lead to massive losses and liabilities.
- EAs offer highly competitive costs and fees
Often, EAs are more competitively priced than CPAs. EAs have lower overhead and more extensive tax-specific expertise that allow them to deliver more to the client at better prices than other tax professionals.
For instance, while a CPA has to worry about the various state fees associated with CPA licensing, as EAs, we don’t have those kinds of costs, so none of that gets passed on to you. Our extensive EA services, and very competitive rates, will save you time, money, and resources dealing with tax returns and IRS.
- EAs are highly versatile and functional
Besides being able to deliver a host of tax-related services for individuals and businesses, EAs are also the only federally licensed tax preparers that have unlimited rights to represent a client before the IRS. This is a huge advantage because it means you will have a professional tax expert on your team who can represent you before the IRS in case of an audit, collections, or appeals.
Interestingly, most EAs are former IRS employees, hence we have the right tools and experience to tackle and solve your tax matter, in the event that an audit, lien, levy or any other weapon in the IRS’s toolbox has been engaged.
Now that you know, wouldn’t you want to hire an EA to handle your tax debt?
When you work with an EA, you know you’ll be working with a professional tax advisor who is a qualified representative who can effectively deal with any IRS-related issues. That’s big when you consider all the bad things that the IRS can send your way to try to collect what they feel you owe.
Enlisting the help of an EA is not only practical but also cost-efficient. Indeed, a trustworthy EA can be a one-stop shop for you and your business, helping you stay tax compliant without hurting your bottom line.
You’ll definitely want to get covered by my IRS Tax Freedom Shield of Protection! My team of EAs are here to protect you from the IRS and to ensure that you get the best resolution deal possible! Tap into the knowledge and expertise of our EAs on staff and get your tax debt matter solved. We’ll take care of everything and do all the work for you.
You can get your life back, I promise! Schedule a FREE consultation using one of the contact methods below. Take that first step to IRS Tax Freedom, and let’s have that conversation so I can determine how we can best help you.