An Enrolled Agent is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.This designation maybe be found on the IRS Power of Attorney form, 2848.
What does the term IRS Enrolled Agent actually mean?
Enrolled means to be licensed to practice by the federal government, and Agent means authorized to appear in the place of the taxpayer at the IRS. Only Enrolled Agents, tax attorneys, and CPAs may represent taxpayers before the IRS. The Enrolled Agent profession dates back to 1879 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings.
Enrolled Agent” (EA) is a tax professional who has passed an IRS test covering all aspects of taxation, plus passed an IRS background check. Enrolled Agents have passed a two-day, 8-hour examination.
The examination covers all aspects of federal tax law, including the taxation of individuals, corporations, partnerships, limited liability partnerships and various regulations governing IRS collections and audit procedures. Like CPAs and Tax Attorneys, Enrolled Agents can handle any type of tax matter and represent their client’s interests before the IRS. Many states allow EA’s to practice before them as well.
IRS Enrolled Agents can advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. Enrolled Agents expertise in the continually changing field of taxation enables them to effectively represent taxpayers audited by the IRS. You see Enrolled Agents today representing taxpayers before the collection division.
Privilege and the Enrolled Agent: The IRS Restructuring and Reform Act of 1998 allow federally authorized practitioners a limited client privilege.
This privilege allows confidentiality between the taxpayer and the Enrolled Agent under certain conditions. The privilege applies to situations in which the taxpayer is being represented in cases involving audits and collection matters. It is not applicable to the preparation and filing of a tax return.
This EA privilege does not apply to state tax matters, although a number of states have an accountant-client privilege with the U.S. Treasury Department. Check with each State to find out whether this privilege is allowed.
