What is An Enrolled Agent?
An enrolled agent (EA) is a tax professional who is federally authorized to represent taxpayers before the Internal Revenue Service (IRS).
This is the highest credential the IRS awards, and it is recognized in all 50 states.
What enrolled agents can do?
Unlike some other tax preparers, enrolled agents have "unlimited practice rights," meaning they can represent any taxpayer for any tax matter at any IRS office.
This includes:
Tax return preparation: Assisting individuals, partnerships, corporations, and other entities with preparing and filing their returns. Represe...
How enrolled agents are certified
There are two ways for a person to become an enrolled agent:
By examination: An individual must pass a three-part comprehensive Special Enrollment Examination (SEE) that covers all aspects of federal tax law. They also must pass a background check. By experience: Certain former IRS employees who have worked in a ...
Enrolled agents vs. other tax professionals
While Certified Public Accountants (CPAs) and tax attorneys also have unlimited representation rights, their focus and licensing differ from EAs.
Education: Unlike CPAs, there is no formal degree requirement to become an EA. The qualification is based on a demonstrated proficiency in tax law. Specialization: All ...
History Of Enrolled Agents
The history of the enrolled agent (EA) begins in 1884 to combat fraudulent Civil War claims and has evolved alongside the U.S. tax code to focus primarily on federal tax matters
Origins: The Horse Act of 1884
Following the Civil War, many Americans made claims against the government for losses of property and livestock. Many fraudulent and dubious claims were submitted by unscrupulous "agents," which led Congress to take action.
On July 7, 1884, President Chester A. Arthur signed the "Horse Act of 1884," which empowered the Secretary of the Treasury to regulate these agents.The act created a standard for enrolled agents, requiring suitability checks and character evaluations to ensure that only qualified individuals could represent citizens before the Treasury Department.
Expansion with the U.S. income tax
The role of enrolled agents expanded with the implementation of the federal income tax following the 16th Amendment and the Revenue Act of 1913, including assisting with tax relief claims. As the tax code became more complex, the Treasury Department consolidated regulations for representatives into Circular 230 in 1921. A special enrollment exam was established in 1959, and the title "Enrolled Agent (Enrolled to Practice before the IRS)" was officially adopted in 1966.
Formalization and professionalization
In the 1970s, enrolled agents began forming organizations to support their profession and advocate for taxpayers. The Association of Enrolled Agents (AEA) was founded in California in 1972 and grew to become the National Association of Enrolled Agents (NAEA). The NAEA moved its headquarters to Washington, D.C. in 1981 to enhance its advocacy efforts.
Modern enrolled agent
Today, enrolled agents are federally licensed tax practitioners authorized by the U.S. Department of the Treasury to represent taxpayers before the IRS on all tax matters. This federal licensing distinguishes them from state-licensed professionals such as CPAs and attorneys.