What is an Enrolled Agent?

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. 1. The profession has been regulated by Congress since 1884! Enrolled agents were first recognized on July 7, 1884 by an Act of Congress signed into law by President Chester A. Arthur, which came about due to fraudulent war loss claims following the Civil War. The “Enabling Act” or “Horse Act of 1884,” which stipulated that enrollment was governed by a committee on enrollment and disbarment, was meant to ensure that enrolled “agents, attorneys, or other persons representing claimants” could help settle claims associated with property the government had seized for use in the Civil War. 2. In 1913, when the income tax was passed, the job of the enrolled agent was expanded to include claims for monetary relief for citizens whose taxes had become inequitable. As the income tax, estate, gift and other sources of tax collections became more complex, the role of the enrolled agent increased to include the preparation of the many tax forms that were required. Additionally, as audits became more prevalent, their role evolved into taxpayer advocacy and negotiating with the Internal Revenue Service on behalf of their clients 3. Enrolled Agents are licensed by the federal government (the US Department of the Treasury). 4. Enrolled Agents are the only tax professionals who receive their right to practice from the United States Government. 5. Enrolled Agents are authorized to appear in place of the taxpayer at the Internal Revenue Service, and have unlimited rights of representation in IRS audits, collections and appeals. 6. Only Enrolled Agents are required to demonstrate to the IRS their competence in matters of taxation before they represent a taxpayer. 7. Enrolled Agents take a difficult 3 part examination administered by the IRS, which covers taxation of individuals, corporations, partnerships, estates and trusts, procedures and ethics. 8. Enrolled Agents are required to complete 72 hours of continuing education to keep them abreast of any and all tax law changes. They are unique in that they are the only group of tax professionals who report their continuing professional education hours directly to the IRS. 9. Enrolled Agents are bound by Circular 230, which gives them limited client privilege in situations where the taxpayer is being represented in cases involving audits and collections matters. 10. Enrolled Agents are subjected to a rigorous background check conducted by the IRS. 11. Unlike CPAs and attorneys, who may or may not choose to specialize in taxes, ALL Enrolled Agents specialize in taxation and are often referred to as “America’s tax experts.” 12. 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. Please call us at (248) 816-1220 or 800-276-8319 to set up a free consultation. Or Book Your Consultation here: We service clients worldwide.