What is an Enrolled Agent (EA)?

An Enrolled Agent (EA) is a federally-authorized tax practitioner or preparer that has proven his/her ability and technical expertise in the field of federal taxation. As a result g one must prove their ability in one of two ways; first by taking a stringent exam that explores all aspects of federal taxation code. The other way the designation can be earned is by working for the IRS in a capacity of interpreting and applying the federal code for 5 years.  The EA is then empowered or entitled 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. Also known as ‘admitted to practice before the IRS.  An EA is bound to the ethics and practices set forth by the US Treasury outlined in circular 230.

“Enrolled” is a federal government name meaning to be “admitted to practice” before the IRS. The word “Agent” means authorized to appear before the IRS in representation of the taxpayer.  Only Attorneys, CPAs, Enrolled Actuaries and Enrolled Agents, may represent taxpayers before the IRS.  

Interestingly, the Enrolled Agent profession dates back to just after the civil war when in 1884 Congress enacted regulations to regulate the people sent to represented citizens in cases with the U.S. Treasury Department. 

An Enrolled Agent who renewed his or her license in April 2008 agreed to sit for a minimum of 16 continuing educational credits annually and that number of credits must include at least two credits in ethics. The IRS requires a minimum of 72 credits over a three year period. Some EA’s feel the need to go even further to enhance their professional development. As a member of the National Association of Enrolled Agents the EA agrees to sit for 30 credit of CPE for a total of 90 CPE over the course of their three year term.  Not withstanding, the mention that the two annual ethics credits will be earned.  

Further, Enrolled Agents are the only tax professionals required to demonstrate their knowledge in matters of taxation to the IRS. Only after they are admitted to practice before the IRS can they represent a taxpayer before the IRS.  Not all Attorneys and CPAs choose to specialize in taxes, however all Enrolled Agents specialize in taxation.  Enrolled Agents are the only tax preparers who have earned the right to represent tax payers before the IRS.

The source for this explanation of “What is an Enrolled Agent?” or if you would like more information about Enrolled Agents please access the NAEA website by selecting the banner image below.