Why Use an Enrolled Agent?

tax preparerWhy Use an Enrolled Agent?

Not all paid return tax practitioners are equal! The IRS chart below outlines the different levels of testing, continuing education requirements, unlimited representation rights and other criteria that you should know before hiring a tax professional.

Category

PTIN

Tax Compliance Check

 Background Check

IRS Test

Continuing Education

Practice Rights

Enrolled Agents*

 Yes

 Yes

Proposals Pending

Yes (Special Enrollment Exam)

72 hours every 3 years

Unlimited

CPAs**

 Yes

 Yes

Proposals Pending

No

Varies

Unlimited

Attorneys**

 Yes

 Yes

Proposals Pending

No

Varies

Unlimited

Supervised Preparers

 Yes

 Yes

Proposals Pending

No

No

Limited

Non-1040 Preparers

 Yes

 Yes

Proposals Pending

No

No

Limited

Using an enrolled agent can save significant time and effort in tax preparation and its associated tasks. EAs are equipped to advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements.  EAs’ Continuing Education (CE) requirements ensure they have the knowledge to effectively represent taxpayers audited by the IRS despite the continually changing tax laws. In fact, EA members must fulfill continuing professional education requirements that exceed the IRS’ required minimum.

           NAEA EAs provide two unique benefits to taxpayers.

Emphasis on Ethics – Our principal focus is honest, intelligent and ethical representation of taxpayers before the governmental agencies. Our members adhere to a stringent Code of Ethics and Rules of Professional Conduct of the Association, as well as the Treasury Department’s Circular 230 regulations. In addition, our members belong to a strong network of experienced, well-trained tax professionals who work to make the tax code fair and reasonably enforced.

Proof of Expertise – Only enrolled agents are required to demonstrate to the IRS their competence in all areas of taxation, representation and ethics before they are given unlimited representation rights before IRS. Unlike attorneys and CPAs, who are state licensed and who may or may not choose to specialize in taxes, all enrolled agents specialize in taxation. Registered tax return preparers have passed a minimal competence test on tax forms for individuals, and have only limited representation rights.

Janie MortenJanie mortensen at the officesen, principal at M J Mortensen Associates, has over 40 years experience as an enrolled agent and member of the National Association of Enrolled Agents. Please feel free to contact her at Janie@mjmortensen.com or call her at (703) 641-8302.

 

 

 

 

 

Contact Us for a FREE Consultation!