An enrolled agent (EA) is a licensed tax attorney who can represent taxpayers in tax court before the IRS. The candidates for the position of EA are selected by US government officials. To become an EA, you must meet specific qualifications, such as passing a test or working in a profession related to the IRS that permits a background check. In 1884, the position of “enrolled agent” was established to answer problems regarding Civil War death claims.
A tax relief professional is a licensed tax professional who can represent taxpayers’ interests during tax audits, tax appeals, and tax collections. The IRS lets certified enrolled agents who are also members of the National Association of Enrolled Agents help people, businesses, trusts, partnerships, and other entities with their taxes and prepare their tax returns.
What is the role of an Enrolled Agent?
In the 1880s, there were no rules that effectively regulated attorneys, nor was there any such thing as a “certified public accountant.” After some fraudulent damages claims were filed during the American Civil War, possibilities arose for registered agents. Congress authorized enrolled agents to represent citizens when filing Civil War claims with the Treasury Department.
The Horse Act, which regulated EAs, was enacted into law by Chester Arthur in 1884. However, the 16th Amendment required EAs to engage with the Internal Revenue Service (IRS), file tax returns, and seek solutions to tax difficulties. NAEA was founded in 1972 by a group of EAs who desired to be heard and progress in their careers.
Predictions indicate that the number of positions for tax inspectors will decrease by 6% between 2014 and 2024. This is because changes in federal, state, and local budget policies will have a direct impact on the tax examination industry.
As the need for tax services increases and laws and policies are modified more frequently, employment opportunities for enrolled agents will increase. EAs are in high demand across a broad spectrum of industries, including public and private accounting firms, legal firms, municipal and state governments, and financial organisations.