Enrolled Agent
Encyclopedia
An Enrolled Agent 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.
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.
s, 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 (or Circular 230
). FATPs are allowed to represent taxpayers in all proceedings before the Internal Revenue Service including audits and appeals.
. 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." 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.
Taxation in the United States
The United States is a federal republic with autonomous state and local governments. Taxes are imposed in the United States at each of these levels. These include taxes on income, property, sales, imports, payroll, estates and gifts, as well as various fees.Taxes are imposed on net income of...
professional recognized by the United States federal government to represent taxpayers in dealings with the Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
(IRS). The profession has been regulated by Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
since 1884.
To become an Enrolled Agent an applicant must pass the Special Enrollment Examination
Special Enrollment Examination
The Special Enrollment Examination is a test that individuals can take to become an Enrolled Agent. This two day test on taxes is a three-part exam that includes :*Part 1 - Individual*Part 2 - Business...
or present evidence of qualifying experience as an Internal Revenue Service employee. A background check
Background check
A background check or background investigation is the process of looking up and compiling criminal records, commercial records and financial records of an individual....
, 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
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
. Unlike today, the first "EAs" were appointed with little or no qualifications other than a minimal background in bookkeeping
Bookkeeping
Bookkeeping is the recording of financial transactions. Transactions include sales, purchases, income, receipts and payments by an individual or organization. Bookkeeping is usually performed by a bookkeeper. Bookkeeping should not be confused with accounting. The accounting process is usually...
.
According to the National Association of Enrolled Agents there are currently about 48,000 practicing EAs in the United States.
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, and persons authorized to practice are known as "Federally Authorized Tax Practitioners," or "FATPs". The FATP status is granted to attorneys, Certified Public AccountantCertified Public Accountant
Certified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...
s, 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 (or Circular 230
Circular 230
Circular 230 prescribes the rules governing practice before the U.S. Internal Revenue Service . These rules also require attorneys, Certified Public Accountants , Enrolled Agents, and others preparing tax returns and giving tax advice to do certain things, and prohibit certain things...
). 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 CourtUnited States Tax Court
The United States Tax Court is a federal trial court of record established by Congress under Article I of the U.S. Constitution, section 8 of which provides that the Congress has the power to "constitute Tribunals inferior to the supreme 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." 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
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
is limited to attorneys.
See also
- Tax advisorTax advisorA tax advisor is a financial expert specially trained in tax law. Some countries require tax advisors to verify the balance sheets of companies above a certain size...
- Tax professional
- American Society of Tax Problem SolversAmerican Society of Tax Problem SolversThe American Society of Tax Problem Solvers is a non-profit organization of tax professionals in the United States. The primary functions of ASTPS is to provide special training and accreditation to tax and legal professionals...
- National Association of Enrolled Agents (NAEA)National Association of Enrolled Agents (NAEA)The National Association of Enrolled Agents is an organization of enrolled agents in the United States. Founded in 1972, it claims a membership of 10,000 EAs, just over 20 percent of all enrolled agents in the United States....