Taxpayers have a variety of tax professionals at their disposal: CPAs, tax preparers, tax attorneys and Enrolled Agents. If your tax scenario is more complex than average, an Enrolled Agent is the idea person who can give you tax planning advice based on your specific tax situation. Here’s an overview of the role of Enrolled Agents.
Enrolled Agents and CPAs
While both of these professionals can be of great help to you during tax season, their roles are different. A CPA is trained to provide general financial and tax advice. An Enrolled Agent is specially trained in taxation, which means they have the background and the knowledge to understand, interpret and apply tax codes to various taxpayer scenarios.
An enrolled agent would be of help to you if you run a business, own a tax shelter, or have passive income/losses. CPAs can also act as Enrolled Agents.
Training for Enrolled Agents
As with any process related to the IRS, Enrolled Agent training is lengthy. Candidates must qualify by either working for the IRS for five years in a role that required them to know and apply tax code regulations. Candidates who haven’t worked for the IRS for five years can qualify by sitting for an intensive exam that covers all aspects of IRS tax code and regulations.
Enrolled Agents must then maintain their role by participating in continuing education courses that keep them up to date on rapidly changing tax codes.
How An Enrolled Agent Can Help
An Enrolled Agent has the authority to offer specialized tax advice for taxpayers, and they may legally represent you in audit hearings. In addition, they can offer tax planning advice throughout the year, especially if you own real estate or investment properties. An Enrolled Agent can also advise you on tax matters regarding owning a business or corporation, or if you’re considering investment income opportunities.
If your tax scenario is more complicated this year, or if you just want to check in with a tax pro, we have Enrolled Agents on staff who can help. Get started today by clicking on the white “Start Chat” button at the top of our page, or give us a call at 888-224-3004.