Updated: Oct 27, 2020
Enrolled Agent or EA for short, they are certified tax professionals. They have experience in all tax matters, for both individuals and businesses from small to large. As an EA, they will have full authority to represent clients before the IRS, covering all tax topics and working with any administrative level, in all matters except for Tax Court, where an attorney must represent their clients.
"An enrolled agent 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. the highest credential the IRS awards." - According to the IRS
To become an Enrolled Agent, their starting point could be a tax accountant, they need to participate in three parts of the Special Enrollment Examination to test their full knowledge of the law and the covers individuals tax-related processes, businesses tax procedures, representation, and tax practice. After completing the exam, they also need a background check administered by the IRS. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.
When businesses need an Enrolled Agent?
When you are not really knowledgeable in tax matters, EAs will give you a comprehensive understanding of taxation related to the business, especially how you will be taxed depending on your business type.
If the IRS has any questions regarding your taxes, or if they decide to conduct an audit, an enrolled agent could advocate on your behalf.
Enrolled Agent assists you in understanding the business expenses of the business that are deducted from your taxes. Especially when you really need to file a tax return in many states. Their certifications are allowed in every state so if your business operates across multiple states then Enrolled Agents will be a necessary consideration.
In addition, for small businesses, EAs can also help them with problems such as failing to file your tax return, debt relief, tax evasion, tax liens, tax levies, and tax fraud.
Finally, if your business wants to reduce taxes, contact an Enrolled Agent right away.
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If you, as a business owner, see that you cannot handle accounting on your own, consider hiring an accountancy service for contractors to help you with it.
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