Tax Services, Solutions and Strategies

Value of Enrolled Agents

Here is a common misconception: that all tax return preparers are federally licensed.

  • Even CPA’s and most tax attorneys are licensed by their state, restricting the scope of who they can represent.  Enrolled agents can represent clients from anywhere in the U.S.A. and in many cases beyond.
  • Many states have no special licensing laws for tax preparers, but enrolled agents receive their authority from the federal government. In fact enrolled agents are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS.
  • “Enrolled” refers to the fact that the federal government licenses these professionals. They are “agents” because they are authorized to appear in place of a taxpayer in dealing with IRS audits, collections, or appeals.
  • Enrolled agents earn their credential by passing a comprehensive three part exam administered by the IRS that covers individual, business, estate and trust taxation, representation and more in addition to passing vigorous background checks.
  • In order to maintain their license, enrolled agents must complete annual continuing education requirements in tax law and ethics. Accountants and attorneys lobbied away their requirements to maintain their tax knowledge, whereas enrolled agents will be up to date on the recent tax law changes.
  • This up to date knowledge helps enrolled agents to prepare the most accurate tax return for their clients, as opposed to taxpayers who prepare their own returns or deal with unlicensed preparers; who may fail to include important information simply because they overlook it, a document was never received, or more commonly, just from lack of knowledge of the tax laws. An enrolled agent can prevent the headaches from dealing with the IRS over those issues.

Contact to reach me for any tax issue.

-Jacob Meler, Enrolled Agent

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