IRS Representation

When you visit Executive Accounting Services in Raleigh you’ll often be talking to one of our Enrolled Agents.

What is an Enrolled Agent?

Enrolled Agents (EA) are federally-authorized specialists that have specialized knowledge in the area of taxation and also are enabled by the U.S. Department of the Treasury to help legally represent taxpayers in front of every administrative level of the IRS with regard to audits, collections, as well as any appeals.

“Enrolled” indicates that an individual is licensed to practice by the federal government, and “Agent” means the individual is able to appear in place of the taxpayer in front of the Internal Revenue Service. Enrolled Agents, attorneys, and CPAs exclusively are able to represent taxpayers in front of the IRS. The Enrolled Agent position dates back to 1884 when, following suspicious lawsuits that were initially issued pertaining to Civil War damages, Congress acted to control people that represented individuals in their personal negotiations with the U.S. Treasury Dept.

An Enrolled Agent earns their license in one of two ways:

  1. By way of passing a thorough exam that includes every aspect regarding the tax code.
  2. Through having had a job at the Internal revenue service for at least 5 years in a job that, on a regular basis, interpreted as well as put into application the tax code along with its regulations. Every candidate is put through a demanding background check carried out by the Internal revenue service.

How can an Enrolled Agent assist me?

Enrolled Agents counsel, legally represent, and also put together tax returns for you as an individual, partnerships, corporations, estates, trusts, along with virtually any organization that has tax-reporting requirements. Enrolled Agent knowledge in the continuously transforming area of taxation allows these individuals to be able to effectively speak for taxpayers audited by the Internal Revenue Service.

Confidentiality and the Enrolled Agent

The IRS Restructuring and Reform Act of 1998 permits federally approved professionals (those bound by the Department of Treasury Circular 230 regulations) a restricted client privilege. This privilege permits confidentiality among the taxpayer and the Enrolled Agent under specific circumstances. The privilege is applicable to circumstances in which the taxpayer will be represented in cases concerning audits as well as collection issues. It’s not relevant to the filing and preparation of tax returns. The privilege will not pertain to state tax issues, but some states do have an accountant-client privilege.

Are Enrolled Agents mandated to take ongoing specialized instruction?

Yes. Along with the strict testing and application procedure, the Government calls for Enrolled Agents to finish 72 hrs of continuing education,to be reported every three years, in order to keep their Enrolled Agent status. NAEA members are actually required to finish 90 hrs for each three year reporting period. Due to the expertise required in order to become an Enrolled Agent as well as the prerequisites to continue to keep the license, presently there are merely around 46,000 practicing Enrolled Agents.

What is the difference between Enrolled Agents and other tax specialists?

Enrolled Agents are the only ones expected to show to the Internal Revenue Service all their knowledge as it relates to issues about taxation before they are allowed to represent a taxpayer in front of the IRS. In contrast to attorneys and CPAs, who may or may not elect to specialize in tax issues, every Enrolled Agent specializes in taxation. Enrolled Agents alone are the taxpayer representatives that achieve their authority to practice directly from the U.S. government (States license CPAs and attorneys).

Are Enrolled Agents constrained by any ethical guidelines?

Enrolled Agents are compelled to follow the conditions laid out by the Department of Treasury Circular 230, that contains the polices regulating the Enrolled Agents practice before the IRS. NAEA members are likewise constrained by a Code of Ethics and Rules of Professional Conduct of the Association.

Why should I consider hiring an Enrolled Agent that is an affiliate of the National Association of Enrolled Agents (NAEA)?

The primary consideration of the National Association of Enrolled Agents along with all of its members is truthful, educated and honest representation of the financial position of taxpayers in front of the federal agencies. Members of NAEA are required to meet continuing education requirements which surpass the Internal Revenue Service minimum requirement. Additionally, NAEA members conform to a strict Code of Ethics and Rules of Professional Conduct of the Association, along with the Treasury Department’s Circular 230 regulations. NAEA members belong to a tight network of accomplished, well-trained tax professionals that competently represent their clients and labor to make the tax code fair and reasonably enforced.

Do You Need IRS Representation?

At Executive Accounting Services, we have several Enrolled Agents on staff here in our Raleigh office to serve you. For a private consultation with one of them just fill out our convenient contact form or call (919) 859-8600