No Representation Limitations
Federal law only allows licensed attorneys, CPAs and enrolled agents to represent a taxpayer before the IRS without any limitation. As an enrolled agent, this unrestricted access presents opportunities to increase your income since it allows you to offer a wider range of tax services to the general public. This means that in addition to preparing client returns during tax season, you can earn fees for representing clients at an IRS appeals office, preparing and filing documents on a client’s behalf, correspond directly with employees of the agency, attend hearings
and conferences with or without your client even being present, and provide written advice to third parties on the tax implications of business transactions. Unless you hold one of these three designations, you’re limited to preparing, signing and defending your clients’ tax returns as a Tax Return Preparer, or OTRP
No Degree Required
To become an IRS enrolled agent, you will need to prove that you possess some level of tax expertise by passing all three parts of the Special Enrollment Examination, or SEE. Once you pass the SEE, the IRS will perform a tax compliance check to ensure your own tax returns have been filed and don’t have an outstanding tax debt before it allows you to become an enrolled agent. Note, however, that no educational requirements exist for enrolled agents. This is a significant benefit since you can avoid the time and financial commitments of school that CPAs and lawyers face.
Not Just 1040s
An important advantage of becoming an enrolled agent over an RTRP is that your tax practice can cover more than just the individual income tax returns that are prepared on Forms 1040, 1040A and 1040EZ. There are many other areas of tax that present additional career opportunities and sources of income for an enrolled agent. As an EA, you can provide estate and gift tax consulting, assist companies with their employment tax obligations, focus your practice on retirement planning or even assist Fortune 500 companies with their corporate income tax returns.
If your goal is to obtain employment rather than form your own tax practice, the enrolled agent designation will make your job applications more competitive. Enrolled agent is the highest credential awarded by the IRS; the agency even notes that it’s an “elite status.” When an employer sees the EA designation on your resume, they’ll already know that you possess a high level of competency in tax issues
