An Enrolled Agent (EA) is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee.
Enrolled Agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.
Enrolled Agents, like Attorneys and Certified Public Accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.
There are many differences between CPA's and EA's. The most obvious of which is PRICE. EA's are often much more affordable than CPA's. EA's are tax specialists, focused solely on tax matters. Whereas CPA's may offer tax services, but it may not be their specialty. EA's excel at tax resolution, and dealing with the IRS or state - a task many CPA's will not engage in. Furthermore, the EA licensure is federally-issued, thus many EA's will prepare state tax returns for many different states. CPA's are state-licensed, and many CPA's elect to not file returns for states that are not their home state.
The United States Department of Treasury licenses Enrolled Agents (EA). This comprehensive process requires background checks, compliance checks, continuing education requirements, and ethical commitments.
An EA can perform almost any duty required before the IRS or state department of revenue. However, an EA cannot represent a client in tax court.
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