How Important Are Enrolled Agents?

Last updated on June 26, 2021

Enrolled agents, or EAs, are authorized tax practitioners who represent taxpayers before the IRS. They have technical expertise in federal taxes and have the privilege to represent American taxpayers for appeals, collections and audits before all administrative levels of the IRS. ConsumerTaxReviews.org adds that enrolled agents are licensed by the U.S. Department of Treasury to represent taxpayers, unlike tax attorneys or CPAs (Certified Public Accountants) who are authorized by state authorities to represent taxpayers.

Enrolled Agents & the IRS

EAs are required to pass a three-part test that covers individual and business tax returns to be eligible to represent taxpayers before the IRS. A former IRS employee who has experience and expertise in tax issues can also become an enrolled agent.

ConsumerTaxReviews.org says the IRS requires Enrolled Agents to maintain their status by adhering to ethical standards and completing 72 hours of continuing education courses every three years. A background check is also conducted by the IRS to review the applicant’s tax compliance. Enrolled Agents can, after clearing the courses and checks, choose which taxpayers to represent, what kind of tax issues to handle and the IRS offices before which they’ll represent their clients.

ConsumerTaxReviews.org informs taxpayers that there are currently around 48,000 practicing Enrolled Agents in the United States, according to National Association of Enrolled Agents.

Enrolled Agents & Resolution of Tax Issues

Enrolled Agents can effectively resolve cases of tax debt and other non-compliance, except disputes, with the IRS. Taxpayers can take help from Enrolled Agents to negotiate their tax case with the IRS. This includes matching taxpayers with the right IRS program, appealing for a penalty abatement, appealing for a tax reduction, stopping IRS collection actions, and appealing an audit.

Since Enrolled Agents are federally authorized tax practitioners, they are, along with tax attorneys and CPAs (Certified Public Accountants), authorized to participate in all proceedings before the IRS, including audits and appeals.

ConsumerTaxReviews.org shares that Enrolled Agents cannot represent taxpayers in disputes with the IRS before the U.S. district courts, bankruptcy courts, court of appeals, or the Supreme Court. That authority is only available to tax attorneys.

Importance of Enrolled Agents

The expertise and experience of Enrolled Agents in tax matters is unmatched. They have in-depth knowledge of the procedures and policies of the IRS, and have up-to-date information about US tax laws and tax codes. They can provide specific and specialized help to taxpayers when dealing with the most difficult tax issues. They have technical expertise in the field of federal taxation. Therefore, ConsumerTaxReviews.org advises taxpayers to consult Enrolled Agents with matters that require them to negotiate with the IRS.

Apart from some tax attorneys and CPAs, Enrolled Agents are the only federally-licensed tax specialists who specialize in taxation and have unrestricted rights to represent taxpayers before the IRS. Enrolled Agents are an essential part of a tax resolution company because of their knowledge and experience in resolving tax issues. Therefore, ConsumerTaxReviews.org encourages taxpayers to take the help of tax resolution companies that have enrolled agents, as well as tax attorneys, on staff to help reach the best tax solution.