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The purpose of this rigorous exam is to ensure that you possess thorough knowledge of tax law. Are you smart, organized, detail-oriented, and always ready to learn? Do you believe in holding to the highest ethical standards possible? You can verify an individual’s EA status through the IRS return preparer directory on the official IRS website. This additional skill involved negotiating with the IRS on behalf of their clients. You can rest assured that our tax pros won’t stop until you receive every credit and deduction available to you, so you get your maximum refund.Disclaimer number84.
CPA stands for Certified Public Accountant and is a credential issued at the state level by the state board in accountancy. Boundless Advisors https://personal-accounting.org/fifo-vs-lifo-inventory-valuation/ has CPAs as clients where we prepare their returns for them. CPAs and tax attorneys are licensed by the states in which they work.
Becoming an Enrolled Agent
They are the only federally-licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS. Enrolled agents are required to complete many hours of continuing education each year to ensure they are up-to-date on the constantly changing tax code and must abide by a code of ethics. They are the only federally-licensed tax practitioners who both specialize in taxation and have unlimited rights to represent taxpayers before the Internal Revenue Service. All candidates are subjected to a rigorous background check conducted 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.
- NAEA members are held to a higher standard than the IRS’ minimum 72 hour continuing education requirement.
- Department of the Treasury to handle issues including audits, collections, and appeals.
- This even applies for those of you that are state-licensed preparers, such as in California and Oregon, because your state license doesn’t mean jack diddly squat to the IRS (and that’s where the big money is).
- The “EA” designation is the highest tax credential recognized by the IRS.
If your review course suggests you study an exam content area more than you think is necessary, you can try to take the shortcut by answering practice questions first. In doing so, you may find that you’re already proficient in that area. It used to be that the EA exam consisted of four parts, given over the course of two days — once per year!
What Can You Do to Pass the Enrolled Agent Exam Faster?
Reputable preparers will ask to see receipts and will ask multiple questions to determine whether expenses, deductions, and other items qualify. By doing so, they are trying to help their clients avoid penalties, interest, or additional taxes that could result from an IRS examination. Although enrolled agents perform accounting tasks and certain kinds of audits, they’re limited in that they can’t express an “unqualified” type of opinion. For example, they can’t advise a public company when it’s filing financial statements with the Securities & Exchange Commission. You may hear some enrolled agents boast that the EA exam is easy and that they passed it in just a few weeks.
- NAEA has joined forces with Surgent Accounting & Financial Education to provide aspiring EAs with a best-in-class exam prep solution that’s customizable to your level of comprehension.
- Her expertise is in personal finance and investing, and real estate.
- Find out what adjustments and deductions are available and whether you qualify.
- Ken has gained a wealth of business experience through his previous employment as a CPA, Auditor, Tax Preparer and College Professor.
- In 1972, a group of enrolled agents collaborated to form the NAEA to represent the interests of EAs and increase the professional development of its members.
Due to the fact that this type of work can be quite complex, the job of an EA is often in high demand. So there you have, it my list of reasons that all return preparers should become an EA. This even applies for those of you that are state-licensed preparers, such as in California and Oregon, because your state license doesn’t mean jack diddly squat to the IRS (and that’s where the big money is). For these two reasons alone, I believe that every unenrolled preparer should either become an Enrolled Agent or accept the fact that your career will ONLY involve return preparation. EAs must also have or obtain a Preparer Tax Identification Number (PTIN) from the IRS, but this is required of anyone who prepares or helps a taxpayer prepare a federal tax return. Your EA does not have to divulge information to the IRS that you’ve confided in them unless it concerns the preparation and filing of your tax returns.
Renewal after initial enrollment cycle
Someone who charges a taxpayers for tax preparation without signing the return. This person may or may not hold a PTIN, but they are putting you at risk. Tax return preparers who have PTINs but are not listed in the directory enrolled agent definition may provide quality return preparation services, but choose any return preparer wisely. All EA candidates are subject to an IRS background check and they can be disbarred from practicing before the IRS for misdeeds.
Enrolled agents are authorized by the IRS to represent taxpayers before the IRS; every enrolled agent has passed testing on representation. They’re tax professionals who can help you with your business and personal tax issues, similar to certified public accountants (CPAs) and tax attorneys. They can represent you before the Internal Revenue Service in all matters except for Tax Court, where only a tax attorney can represent you. Or, if you prefer to leave tax preparation and filing to a remote tax expert, consider H&R Block Virtual Tax Prep.