What is an IRS Enrolled Agent and How Do I Check Out an EA?

What is an IRS Enrolled Agent?

 

Enrolled Agents are certified by the IRS to file taxes, and handle other tax issues.

This is a review of how to research the reputation of an IRS Enrolled Agent who you can hire if the government files a federal tax lien against you, or your business, if you owe the IRS back taxes.  If you have questions about this review, please reference:  bp87.

• If you know you need to take action, read my article “IF” you should hire IRS back tax help.  (You should not automatically.) Titled “Owe IRS back taxes? When, who, and how do I hire IRS back tax help?” before you do anything else.

As usual, If you like the tone of this writing, I would like to refer you to someone who meets irs back tax help criteria.  Please contact irs back tax help.  Before you email me, please click on and read “About irs back tax help.”  Or you can call toll free at 800.913.8134 and press “0” to bypass the auto-attendant. 

I have personal experience with Enrolled Agents that are excellent at addressing IRS back tax problems.  I also have personal experience with IRS Enrolled Agents (EA) that are horrible at it.  I have the same experience with attorneys and CPAs.  What is the difference between an Enrolled Agent, Attorney, and CPA?  You want a specialist, not a “Jack of All Trades”.

• What is the lesson?  Due Diligence is important.  Do not take their word for it and always do your homework.  Generally speaking, it’s my experience that local EAs who file taxes lack the experience necessary to handle complicated back tax problems.  EAs that handle only back tax problems and typically don’t file taxes for their clients unless it’s required to fix back tax problems are experienced enough to handle complicated delinquent tax issues.

What is an IRS Enrolled Agent?

An Enrolled Agent is someone who has passed the EA Exam administered by the IRS and maintains their certification through ongoing education.  Not all Enrolled Agents have previously worked for the IRS.  Some have been employed by the IRS.  It is my opinion from anecdotal observation that where and how long the Enrolled Agent worked for the IRS may affect the outcome of your back tax resolution.  Some important questions for you EA if they are highlighting their IRS experience:

• Where did you work in the IRS? 

You want people who worked in the IRS Collection Division.

• How long did you work for the IRS? 

You want someone who got into that giant bureaucratic organization and did not like it, and got out quickly.  You do not want someone who is comfortable in that organization.  In order to be successful in a bureaucracy, you don’t “rock the boat”.  You want someone who can think outside the box.  If you’re interviewing any form of representation, and they seemed resigned to “giving in” to the IRS, move on.  You need an active advocate, not a revolving door.

How do I check out an IRS Enrolled Agent’s reputation? 

• “An individual seeking to confirm someone’s enrollment should contact the Detroit Office of Practitioner Enrollment at (313)234-1280 (not a toll-free number) or by email at epp@irs.gov.  When making a verification inquiry, the caller must provide the full name (including middle name or initial if known), and city and state of the enrolled agent.  The caller will receive verification whether the individual is an enrolled agent, the enrolled agent’s enrollment number and whether the enrolled agent is currently in active status.  If the enrolled agent’s status is other than “active”, the caller also will be told whether the status category is: inactive enrollment, inactive retirement, terminated, suspended, or disbarred and the date such status became effective.”

 If you have any misgivings, look around a little more.  As usual, we’re happy to be a second opinion.  You will be treated well if you contact us, for proof read irs back tax help testimonials.  if you’d like me to refer someone to you who meets irs back tax help hiring criteria, contact irs back tax help.

 

I Owe IRS Tax, What’s the Difference Between an Attorney, CPA, and an Enrolled Agent?

I need help with my past due IRS tax.  Should I hire an Attorney, CPA, or EA?  

This article is about the differences between a Tax Attorney, CPA, Enrolled Agent, Tax Preparer, and bookkeeper.  If you have questions about this post, please reference:  BP81.  All irs back tax help comments are in blue.

If you know you need to take action, read my post about whether or not you should hire someone (You should not automatically.) titled “Owe IRS back taxes? When, who, and how do I hire IRS back tax help?” before you do anything else.  

As usual, If you like the tone of these reviews, I would like to compete for your business.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About irs back tax help.”

Tax Attorney

• License required:  Yes.
  • IRS cannot revoke their license, so they don’t have to worry about their livelihood if they take on the IRS for you. 
  • Continuing Legal Education Required:  Yes.
  • IRS Back Tax Expert:  Maybe.   
  • Highest level of education Required:  4 years of college, 3 years of post-graduate work (law school), passing the bar exam, and complete ongoing education.
  • They tend to be more specialized in one particular area, make sure the area is exclusively back taxes, and only work on more complicated matters.

Certified Public Accountant

• License required:  Yes, they receive their licensing from the State.
  • IRS cannot revoke their license.
  • Continuing Education Required:  Yes.
  • IRS Back Tax Expert:  Maybe.   
  • Highest level of education Required:  4 years of college and passing the CPA exam with ongoing education.
  • Experience requirement:  2 years working under a CPA.
  • Should be cheaper than a Tax Attorney

Enrolled Agent

• License required:  Yes, they receive their licensing from the IRS. 
  • IRS can take their license.
  • From the IRS website:  “An IRS Enrolled Agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service.”  “Earned the privilege?”Sounds like a short leash
  • Continuing Education Required:  Yes.
  • IRS Back Tax Expert:  Maybe.   
  • Highest level of education Required:  None.  Must take ongoing education. 
  • Limitations:  Should be good at filing taxes.  The test they take to get their licensing is about 95% tax preparation.  Because their licensing comes from the IRS, they depend on the IRS approval for their livelihood.  If the IRS yanks their licensing, they could end up working at Burger King. 
  • Should be cheaper labor cost than Attorney or CPA.

Bookkeeper

• License required:  No.
  • IRS can ignore them.
  • Continuing Education Required:  No.
  • IRS Back Tax Expert:  Doubtful.   
  • Highest level of education Required:  None.

Tax Preparer

• License required:  Yes, but not yet enforced.
  • IRS can ignore them.
  • Continuing Education Required:  No.
  • IRS Back Tax Expert:  Doubtful.   
  • Highest level of education Required:  None.
  • Limitations:  Cannot represent you before the IRS.
  • Cheapest option in terms of labor.

So who should I use to help me with my IRS back tax problem? 

I recommend an attorney.  Why?  Because it provides you with the most educated person whose main focus of their education and career revolves around argument and negotiating.  Therefore, true advocacy = The best odds. 

If you need someone to prepare taxes, a bookkeeper, Tax Preparer, Enrolled Agent, or CPA would be good.  CPAs can be a crap shoot.  From personal experience, CPAs tend to like numbers more than people, so their powers of persuasion may not be as strong as an attorney. 

All of that being said; one of the best people I’ve ever met at solving tax problems was unlicensed.  She worked for an attorney, but she was very smart, and always won.  She is the exception to the rule.  Of the top five people I’ve met who are the best at this, all are attorneys, none are CPAs, none are EA’s, and #6 is the person I referenced.  Two of those top 5 are who I now use for your IRS tax problem.

One thing I have observed if you hire one of the larger Tax Resolution Companies is that you don’t get to find out who will represent you, and you may end up with an Attorney, a CPA, or an Enrolled Agent with little experience.  

If you would like irs back tax help to be your first or second opinion, I can be reached at irsbacktaxhelp@gmail.com.