What is an Enrolled Agent?
If you have been searching for help from a tax professional there is a good chance that you have run into several types of people. Do you know the difference between all of them? If you don’t, you may end up hiring the wrong person for your situation. After all, hiring a tax attorney when you really need a CPA can cause some problems.
Many people never consider hiring an enrolled agent because they don’t really know what these professionals are or how they can help. Simply put, an enrolled agent is a professional who has passed a test administered by the IRS which covers many aspects of the tax code. Enrolled agents must also pass a background check. The test that enrolled agents pass is extensive. In fact, it encompasses two days and eight hours.
Generally speaking, an enrolled agent can help you with anything that has to do with your tax situation. Additionally, they have the power to represent you in front of the IRS if need be. This situation may arise because of an audit, etc. Since an enrolled agent has to pass a test to become certified, most people agree that they are more qualified than a tax lawyer or CPA. Of course, you need to make up your own mind.
One other important thing to remember is that an enrolled agent can lose their designation at anytime. If the Office of Professional Responsibility finds that an enrolled agent is guilty of malpractice, there is a very good chance that he will lose his designation.
Now that you know more about enrolled agents and what they offer, you can decide if hiring one of these professionals will be in your best interest.
