Are you dealing with tax-related challenges and aren’t sure how to move forward? An Enrolled Agent may be able to assist you. But maybe you’re unfamiliar with Enrolled Agents, the work they do and the benefits they offer compared to other tax professionals. Read on to learn more about Enrolled Agents and how to decide if hiring one is a smart move.
What are Enrolled Agents?
According to IRS.gov, an Enrolled Agent is an individual who has the right to represent taxpayers before the Internal Revenue Service (IRS). These individuals have also passed a three-part comprehensive assessment on individual and business tax returns or gained invaluable experience while working with the IRS for five or more years. Enrolled Agents are also required to conform to certain ethical standards and complete 72 hours of continuing education courses every three years to keep their credentials active and in good standing.
How Can Enrolled Agents Help You with Tax Problems?
Enrolled Agents represent individuals and businesses before the IRS. They also provide assistance to distressed clients who are dealing with filing issues, back taxes, appeals or other tax-related collection issues.
But this is only a fraction of what they are permitted to do. Since they are granted unlimited representation rights by the IRS, Enrolled Agents are free to expand their scope of services to help individuals, businesses, nonprofits and government entities with any component of their taxes.
How Do They Differ from a Lawyer/CPA?
Lawyers and Certified Public Accountants (CPAs) must obtain licensure in the states they want to serve clients. However, Enrolled Agents have unlimited representation rights before the IRS, which means they are free to accept clients in all 50 states and help them resolve a variety of tax issues.
What are the Benefits of Enrolled Agents vs. Other Tax Professionals?
Enrolled agents are federally-authorized tax practitioners with advanced knowledge, compared to CPAs who are only licensed at the state level. The Enrolled Agent designation is also the most prestigious credential the IRS gives out, which demonstrates the individual’s proficiency in taxation. You could also pay far less when hiring an Enrolled Agent compared to a CPA or tax attorney.
Should You Hire an Enrolled Agent?
Whether you received a troubling notice from the IRS, have unfiled tax returns that are past the filing deadline or owe back taxes, hiring an Enrolled Agent can be a smart move. These licensed subject-matter experts can also advise you on legal strategies to minimize your tax liability, interpret tax rules or even prepare tax returns on your behalf.
Ultimately, making the decision to hire one is a personal choice. But you can save yourself a ton of money, time and stress by doing so.
