Lords Mobile Guide:What is an Enrolled Agent for Taxes?

what does an enrolled agent do

In addition to doing your bookkeeping, Bench can connect you to a certified enrolled agent. Access our accountant network, ask to get paired with an enrolled agent, and we’ll get you set up right. You only have https://www.bookstime.com/ to pass the exam to earn the certification, rather than work to meet a bunch of prerequisites. Although CPAs have a more predictable career and salary, the demand for EAs is growing faster than that for CPAs.

After the Civil War, many citizens faced difficulties in settling claims with the government for property confiscated for use in the war effort. As a result, Congress endowed enrolled agents with the power of advocacy to prepare claims against the government. From 1884 through the early 20th century, this statute remained largely unchanged. To avoid getting scammed, the IRS suggests making sure that your tax preparer has an IRS Preparer Tax Identification Number (PTIN).

How Do I Become an Enrolled Agent?

The EA designation can be revoked for malpractice by the IRS Office of Professional Responsibility. In just 5 minutes, we’ll get to know you and the kind of help you’re looking for. The sky’s the limit when you start your small business, and it gives you a chance to dive into your passions.

This act created enrolled agents, and it established a standard people needed to meet to become one of these professionals. A certified public accountant (CPA) license, for example, allows accountants to work in auditing, accounting, and financial planning. Enrolled agents may also become certified tax preparers and work with private companies. Looking to have a remote tax expert check the return you prepared online? Learn more about H&R Block’s Tax Pro Review, which lets you file your taxes online and have an enrolled agent or other tax professional review your finished return.

No one offers more ways to get tax help than H&R Block.

An enrolled agent (EA) is a tax professional who has passed an Internal Revenue Service (IRS) test covering all aspects of taxation, and a scrupulous background check. The “EA” designation is the highest tax credential recognized by the IRS. Registered agents are tax professionals who have passed a rigorous Internal Revenue Service test covering every aspect of taxation. Tax professionals who have earned the EA designation are truly tax experts. All enrolled agents have also successfully passed a background check.

How many enrolled agents are in the US?

EA Population: The National Association of Enrolled Agents states that approximately 10,000 EAs are currently practicing in the United States.

To maintain EA status, you must complete 72 hours of continuing education every three years. As an EA seeking employment in this area of work you will generally need (2) years of experience preparing individual federal and state returns. Working on a less traditional clientele means you will need to https://www.bookstime.com/what-is-an-enrolled-agent handle constant customer flow all year round. Since many foreign tax advisors only work with clients that live abroad, it will be good to have knowledge and experience with forms (1116, 2555, FBAR, 8938). You can learn a lot about these areas in tax by preparing for and getting your EA credential.

How Do I Find a Good Enrolled Agent?

You can follow this link here to see the enrolled agents closest to you and you can further filter by your particular tax situation to find the best suited enrolled agent to help you. If you want to work with someone who has the highest IRS credentials, you should work with an enrolled agent or a CPA. Note that you can select these professionals when you work with a big tax prep company such as H&R Block, Jackson Hewitt, or Turbotax, but they are not the default option. If you want to work with an enrolled agent near me at one of these companies, you need to request that type of professional specifically. The IRS does not require any specific educational background to become an enrolled agent. Applicants have to pass each section of the three-part exam and undergo a background check.

Enrolled agents renew on a staggered schedule that is based off of the last digit of their social security number. In order to renew your credential, you will have to complete 72 hours of continuing education (CE) courses every three years, with a minimum of 16 hours a year. The NAEA publishes information online and in the EA Journal on how to become an enrolled agent.