If you’re looking to start a tax business, earning the Enrolled Agent certification can help set you apart from competitors. An Enrolled Agent (EA) is a federally licensed tax preparer who has the authority to represent taxpayers before the Internal Revenue Service (IRS). In this article, you will learn what it takes to be an Enrolled Agent certified through the IRS and the benefits of receiving this certification.
Enrolled Agent Certification:
The Enrolled Agent certification is the highest credential the IRS awards. To become an Enrolled Agent, one must pass a rigorous three-part exam that covers federal taxation, ethics, and representation. The exam is known as the Special Enrollment Examination (SEE) and is only offered by the IRS.
In addition to passing the SEE, applicants must also meet certain eligibility requirements, such as being a U.S. citizen or resident alien, passing a background check, and completing continuing education courses.
Benefits of Receiving the Enrolled Agent Certification:
- Representation: One of the biggest benefits of becoming an Enrolled Agent is the ability to represent taxpayers before the IRS. This means that Enrolled Agents can assist clients with tax issues such as audits, collections, and appeals.
- Expertise: Enrolled Agents are experts in federal taxation and are knowledgeable about tax laws and regulations. They are also required to complete continuing education courses to stay up-to-date with changes in tax laws.
- Credibility: Enrolled Agents are federally licensed tax professionals, which adds credibility to their name and business. Clients can trust that Enrolled Agents have the knowledge and expertise to handle their tax matters and maximize the value of their returns.
- Flexibility: The certification offers the flexibility to work in a variety of settings, such as accounting firms, tax preparation companies, or as independent contractors.
Enrolled Agent Certification vs. Other Certifications:
There are other certifications in the tax industry, such as Certified Public Accountant (CPA) and Registered Tax Return Preparer (RTRP). While these certifications also demonstrate a level of expertise in tax matters, there are some key differences between them and the Enrolled Agent certification.
- Representation: Only Enrolled Agents have the authority to represent taxpayers before the IRS. CPAs and RTRPs can prepare tax returns but cannot represent clients in front of the IRS.
- Focus: While CPAs and RTRPs have a broad focus that includes tax preparation, Enrolled Agents focus solely on federal taxation. This means that Enrolled Agents have a deeper understanding of tax laws and regulations.
- Licensing: Enrolled Agents are licensed by the federal government, whereas CPAs are licensed by state boards of accountancy. RTRPs were previously licensed by the IRS, but the program was discontinued in 2013.
Universal Accounting Center:
The Universal Accounting Center provides training for individuals who want to become certified as an Enrolled Agent. The program includes comprehensive tax preparation and representation training that prepares students for the SEE exam. Additionally, the program offers marketing and business training to help graduates start and grow their own tax businesses.
Becoming an Enrolled Agent certified through the IRS offers many benefits for individuals who want to start their own tax business. Enrolled Agents have the authority to represent taxpayers before the IRS, are experts in federal taxation, and have credibility in the tax industry. While there are other certifications available, the Enrolled Agent certification offers unique benefits and sets Enrolled Agents apart from other tax professionals.
Universal Accounting Center provides a comprehensive training program for individuals who want to become Enrolled Agents and start their own tax businesses. To start on your journey to becoming an Enrolled Agent, call 877-801-8080 today, or schedule a time to call when it’s convenient for you.