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If you’re self-employed, there are unique rules that guide your tax filing-as unique as the service you provide. Your home office and child care expenses, your retirement plan, even FICA taxes take on whole new meaning when you’re working for yourself. Your tax preparer should know, and an enrolled agent who specializes in preparing taxes for the self-employed will know for sure. In order to become an enrolled agent, you must pass the Special Enrollment Examination or be able to provide enough documentation to show that your experience qualifies you for this position. The applicant will have to pass an extensive background examination that includes investigation of the applicant’s tax history. The examination is comprehensive and covers all facets of the tax code.
Candidates must have a bachelor’s degree and have completed at least 75 hours of professional education in the last five years. Get unlimited advice, an expert final review and your maximum refund, guaranteed with Live Assisted Basic. SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S.
What are the EA representation rights?
However, they have a federal license and can represent a taxpayer in any state. They must abide by the specifications of the Treasury Department’s Circular 230, which provides the guidelines governing enrolled agents. Enrolled agents that have an NAEA membership Virtual Accounting Making the Switch are also subject to a code of ethics and rules of professional conduct. An enrolled agent (EA) is a tax professional authorized by the United States government to represent taxpayers in matters regarding the Internal Revenue Service (IRS).
- That competence makes them great advocates should you ever need one.
- Your information is kept secure and not shared unless you specify.
- As income, 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.
- Enrolled agents are required to take part in continuing education to stay up to date on changes in tax law.
- Or get your taxes done right, with experts by your side with TurboTax Live Assisted.
At the end of the exam, candidates receive a notification on their computer screen indicating that they have passed. The IRS only determines if a test-taker is qualified, not how qualified they may be. Applicants do not need to hold a particular degree or meet experience requirements. All features, services, support, prices, offers, terms and conditions are subject to change without notice. We’ve all heard the phrase about a sucker being born every minute.
Frequently Asked Questions About EAs
These agents have “unlimited practice rights,” meaning that they are allowed to represent any kind of taxpayer—individual, business or organization—and are authorized to deal with any federal tax issue. They can represent clients in all dealings with the IRS, from filing forms and returns to defending them in audits. Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. https://kelleysbookkeeping.com/accounting-for-startups-everything-you-need-to/ This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before. Learn more about enrolled agents in Treasury Department Circular 230PDF. An enrolled agent is a tax professional with authorization from the federal government to represent taxpayers before the Internal Revenue Service (IRS) at all levels.
An individual can become an EA if he has worked for the IRS for five years, or if he has taken the Special Enrolment Examination, which consists of three parts. The first part consists of questions on tax codes for individuals, the second part on tax codes for business entities, and the last part on Circular 230 and the Treasury Department guide. FATP’s are allowed to represent taxpayers in all proceedings before the Internal Revenue Service including audits and appeals. The articles and research support materials available on this site are educational and are not intended to be investment or tax advice.