By definition, the word “tax” is straightforward. Simply put, taxes are amounts of money collected by the government to pay for public services. However, in reality, taxes can be anything but simple, which is why the benefits of working with an enrolled agent are good to know.
They are tax experts.
While the benefits of working with an enrolled agent are varied, this is a big one! You are working with a tax expert when working with an enrolled agent.
First of all, specific, strict qualifications must be met to become an enrolled agent, including passing a comprehensive IRS exam. Candidates must demonstrate expertise in individual and business tax return preparation, representation and federal tax planning.
Secondly, to maintain their status, enrolled agents are required to finish 72 hours of continuing education courses focused on tax preparation every three years.
It’s a select group of individuals.
In fact, there are only two ways someone can become an enrolled agent. As mentioned, there is a three-part comprehensive exam.
Or, an individual can become an enrolled agent based on experience gained as a former IRS employee for a minimum of five years.
They can represent clients before the IRS.
In other words, enrolled agents earn the right to represent taxpayers before the IRS. More specifically, enrolled agents have unlimited practice rights, like attorneys and CPAs. CPAs can also represent clients before the IRS.
To clarify, it means an enrolled agent is free to represent any taxpayer. They are qualified to handle any and all types of tax matters. And, finally, there are no restrictions in terms of which IRS office they can represent clients before.
You won’t have to see or deal with the IRS at all.
Another one of the benefits of working with an enrolled agent is your agent can speak directly to the IRS on your behalf. Whether you receive a letter from the IRS or you are being audited, enrolled agents can represent you on any tax matter, no matter who prepared the tax return, for instance. Again, CPAs are also qualified to represent taxpayers before the IRS.
To summarize, an enrolled agent has earned the highest credentials granted by the IRS. If you are looking for a true tax professional to help handle your taxes, properly prepare your tax returns and more, look no further than an enrolled agent.
At Todd Greene, CPA, PLLC, we currently have two accountants in the process of earning enrolled agent status. We also have two CPAs on staff! Learn more about us, our team and our tax services—and find free tax advice—when you continue to read our blogs.