What is an Enrolled Agent for Taxes?
Enrolled agents (EAs) are tax professionals authorized to represent taxpayers before the IRS. These agents have "unlimited practice rights," meaning that they are allowed to represent any kind of taxpayer—individual, business or organization—and are authorized to deal with any federal tax issue. They can represent clients in all dealings with the IRS, from filing forms and returns to defending them in audits.
Key Takeaways
- Enrolled agents (EAs) are professionals certified by the IRS with unlimited practice rights before the agency.
- Unlike lawyers and CPAs who are typically licensed by individual states, enrolled agents can practice anywhere in the United States.
- There are two ways to become an enrolled agent: passing a comprehensive three-part exam or through experience working for the IRS.
- Enrolled agents are required to take part in continuing education to stay up to date on changes in tax law, with at least 72 hours of continuing education courses every 3 years, including at least 16 hours each year, and at least two hours of the annual training must be in ethics.
Certification by the IRS
Federal regulations give unlimited practice rights before the IRS to only three kinds of professionals:
- lawyers
- Certified Public Accountants (CPAs)
- Enrolled Agents (EAs)
Lawyers and CPAs are licensed by the states where they practice. Enrolled agents are certified by the IRS and can practice anywhere in the United States. Enrolled agent status is the highest level of IRS certification. Though the IRS certifies other types of tax professionals, such as enrolled actuaries and registered tax return preparers, their practice rights are limited.
Who's qualified to be an Enrolled Agent (EA)
There are two ways to become an enrolled agent:
- By passing a comprehensive three-part exam that covers both individual and business tax rules, as well as various IRS procedures
- By working for the IRS at least 5 years in a job that requires interpreting and applying the tax code
Anyone applying to be an enrolled agent must pass a background check, which includes a review of the applicant's tax transcript—essentially, a record of past tax obligations or payments. Someone who has failed to file or pay taxes as required can be denied enrollment.
TurboTax Tip: Enrolled agents must follow ethical standards to practice before the Treasury Department, including having "good character" and "good reputation" and can be suspended or lose their right to practice for incompetence, disreputable conduct, violating tax laws or regulations, or misleading or threatening a client with the intent to defraud.
Continuing education requirements
Enrolled agents are required to take part in continuing education to stay up to date on changes in tax law. According to the Treasury Department Circular 230 which governs practice before the IRS, an agent must take at least 72 hours of continuing education courses every 3 years, including at least 16 hours each year. At least two hours of the annual training must be in ethics.
Ethical standards for agents
Federal law requires that anyone practicing before the Treasury Department, which includes the IRS, have "good character" and "good reputation," in addition to having the necessary knowledge and skills to handle tax matters. Once certified, enrolled agents—and other tax professionals—can be suspended or even lose their right to practice for the following reasons:
- incompetence
- "disreputable conduct," such as being convicted of a crime
- willfully violating tax laws or regulations
- misleading or threatening a client with the intent to defraud
Whether you want an expert to do your taxes from start to finish, or expert help while you file on your own, TurboTax has expert-backed offerings to meet your needs. With TurboTax Live Assisted, our tax experts help you complete your taxes, fix any mistakes, and explain what's next.
Or, with TurboTax Live Full Service, a local tax expert matched to your unique situation will get your taxes done 100% right - as soon as today.
Whichever plan you choose, you'll get you taxes done with 100% accuracy and your maximum refund, guaranteed.
