Enrolled Agents: The Tax Professional
What is an Enrolled Agent?
Enrolled Agents (EA's) are federally authorized tax practitioners who have demonstrated technical competence in tax law and are the only taxpayer representatives licensed to practice by the United States government. Only EA's, Attorneys, and CPA's may represent taxpayers without limitation before the IRS. EA's advise and represent taxpayers before the IRS, e.g., those taxpayers who are being examined, those taxpayers who are unable to pay, and those taxpayers who wish to avoid or recover penalties. EA's prepare tax returns for individuals, partnerships, corporations, estates, trusts and any other entities with tax-reporting requirements. Unlike Attorneys and CPA's who may or may not choose to specialize in taxes, all EA's specialize in taxation and are required by the federal government to maintain their professional skills with continuing professional education.
History of Enrolled Agents
EA is the professional designation for an Enrolled Agent.
After the Civil War, many citizens had problems settling claims with the government for horses and other property confiscated for use in the war effort. In 1884 after many petitions and much pleading, Congress endowed EA's with the power of advocacy to prepare claims against the government and to seek equitable justice for the citizenry. For many years, the purpose of the Enrolled Agent was to act in this capacity.
In 1913, when the income tax was passed, the job of the Enrolled Agent was expanded to include claims for monetary relief for citizens whose taxes had become inequitable. As the income tax, estate, gift, and other sources of tax collections became more complex, the role of the Enrolled Agent increased to include the preparation of the many tax forms that were required. Additionally, as audits became more prevalent, the EA's role evolved into taxpayer advocacy and negotiating with the Internal Revenue Service on behalf of their clients.
In 1972, EA's united to form a national association to represent the needs and interest of EA's and the rights of taxpayers. Today, that association is called the National Association of Enrolled Agents. Through their national association and state affiliates, EA's have successfully defended their rights to practice and furthered the passage of legislation and administrative rules that benefit both tax practitioners and taxpayers.
