Enrolled agent

An Enrolled Agent (or EA) is a tax professional recognized by the United States federal government to represent taxpayers in dealings with the Internal Revenue Service (IRS). The profession has been regulated by Congress since 1884.[1]

To become an Enrolled Agent an applicant must pass the Special Enrollment Examination or present evidence of qualifying experience as an Internal Revenue Service employee. A background check, including a review of the applicant’s tax compliance, is conducted. The IRS also requires Enrolled Agents to complete 72 hours of continuing professional education every three years.

The position of Enrolled Agent was created as a reaction to fraudulent war loss claims in the wake of the American Civil War. Unlike today, the first "EAs" were appointed with little or no qualifications other than a minimal background in bookkeeping.

According to the National Association of Enrolled Agents there are currently about 48,000 practicing EAs in the United States.

Contents

Practice before the Internal Revenue Service: Enrolled Agents and other practitioners

The right to practice before the Internal Revenue Service is regulated by Federal statute[2], and persons authorized to practice are known as "Federally Authorized Tax Practitioners,"[3] or "FATPs". The FATP status is granted to attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and to persons in a few other categories.

Enrolled Agents, like other FATPs, are subject to a set of procedures and regulations described in Treasury Department Circular No. 230, Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers before the Internal Revenue Service[4] (or Circular 230). FATPs are allowed to represent taxpayers in all proceedings before the Internal Revenue Service including audits and appeals.

Practice in the United States Tax Court

Enrolled Agent status does not automatically allow the enrollee to practice before the United States Tax Court. That practice is limited to members of the Bar of the Court. The Internal Revenue Code states that "[n]o qualified person shall be denied admission to practice before the Tax Court because of his failure to be a member of any profession or calling."[5] Bar membership for non-attorneys requires that the applicant pass a Tax Court examination. Attorneys are admitted to the Bar of the Tax Court without having to take the examination.

Practice before the United States district courts, bankruptcy courts, courts of appeal, and Supreme Court of the United States is limited to attorneys.

Notes

  1. ^ "What is an Enrolled Agent?", National Ass'n of Enrolled Agents
  2. ^ 31 U.S.C. § 330 and 5 U.S.C. § 500.
  3. ^ See also 26 U.S.C. § 7525(a)(3)(A), relating to confidentiality of communications.
  4. ^ Codified in regulations at 31 C.F.R. subtitle A, part 10.
  5. ^ 26 U.S.C. § 7452.

See also

References