What is an Enrolled Agent?
Information provided by National Association of Enrolled Agents

An Enrolled Agent (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.

What does the term “Enrolled Agent” mean?

“Enrolled” means to be licensed to practice by the federal government,
and “Agent” means authorized to appear in the place of the taxpayer at
the IRS. Only Enrolled Agents, 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 U.S. Treasury Department.

How does one become an Enrolled Agent?

The license is earned in one of two ways, by passing a comprehensive
examination which covers all aspects of the tax code, or having worked at
the IRS for five years in a position which regularly interpreted and applied
the tax code and its regulations. All candidates are subjected to a rigorous
background check conducted by the IRS.

How can Enrolled Agent help me?

Enrolled Agents advise, represent, and prepare tax returns for individuals,
partnerships, corporations, estates, trusts, and any entities with
tax-reporting requirements. Enrolled Agents’ expertise in the continually
changing field of taxation enables them to effectively represent taxpayers
audited by the IRS.

Privilege and the Enrolled Agent

The IRS Restructuring and Reform Act of 1998 allow 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.

Are Enrolled Agents required to take
continuing professional education?

In addition to the stringent testing and application process, the IRS requires
Enrolled Agents to complete 72 hours of continuing professional education,
reported every three years, to maintain their Enrolled Agent status. NAEA
members are obligated to complete 90 hours per three year reporting period.
Because of the knowledge necessary to become an Enrolled Agent and the
requirements to maintain the license, there are only about 46,000 practicing
Enrolled Agents.

What are the differences between Enrolled Agents
and other tax professionals?

Only Enrolled Agents are required to demonstrate to the IRS 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 Enrolled Agents specialize in taxation. Enrolled
Agents are the only taxpayer representatives who receive their right to
practice from the U.S. government (CPAs and attorneys are licensed by
the states).

Are Enrolled Agents bound by
any ethical standards?

Enrolled Agents are required to abide by the provisions of the Department
of Treasury’s Circular 230, which provides the regulations governing the
practice of Enrolled Agents before the IRS. NAEA members are also bound
by a Code of Ethics and Rules of Professional Conduct of the Association.