About enrolled agents

Comment

Comment by Tax Man Tom Blair on June 3, 2011 at 1:43pm

Do not confuse the designations of "registered tax preparer (RTP)" with "Enrolled Agent (EA)" because the RTP may indeed complete your tax return, and provided they sign that return, they may even assist you before the IRS (administrative division) Examinations (audit) itself.   However, it is one thing to prepare a tax return, but it is a far different thing to represent another before the IRS auditors.   The "forte'" of the Enrolled Agent is that he or she may not only prepare your tax return, but also represent you before all three of the IRS "administrative" divisions (i.e.: Examinations (audits); Collections (often referred to as ACS = Account Collections Service), and also IRS Appeals Division.

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One other important matter most taxpayers are not aware of: The IRS commonly disavows the instructions on the published IRS Forms...when you need representation before the IRS, you will be best served by having a person familiar with the Title 26 Internal Revenue Code and can justify your position with specific sections of that code.   For example, if you are lucky enough to sell your personal residence these days, your tax preparer may know that you can elect not to pay taxes on the gains from such a sale, but can he or she quote IRC SS 121 to prove it at an IRS audit?   Or, if you sell a rental property and it is discovered that you did not depreciate it, your tax pro had better know his or her way around the Form 3115 or you may pay thousands of dollars in taxes that you might otherwise not owe!

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In short, just don't be confused.   The Enrolled Agent spends at least twice as many hours of time each and every year to up-date their knowlege in order to more effectively deal with the IRS and the Internal Revenue Code...your call, of course, but make a safer bet and learn more about the Enrolled Agent profession at www.naea.org before you make any final decisions when or if the IRS "comes calling" on your tax return(s).

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Respectfully submitted,

Thomas Avery Blair, EA

Member NAEA, NATP, FSEA amd GSEA

30 years' experienced and skilled in taxation for individuals and all tax entity types of small businesses