An Enrolled Agent is an authorized tax expert licensed by the Federal Government. It’s mandatory to sit for an Internal Revenue Service (IRS) exam on federal tax laws, partnerships, and individual taxation for one to qualify as an enrolled agent. Knowledge of various regulations controlling IRS collections and audit procedures is required. However, experienced former IRS employees are exempted from the exam. A rigorous background check is conducted on one’s tax status and criminal background. Persons who earn this privileged status of an enrolled agent must maintain high ethical standards and commit to seventy-two hours of continuing education every three years.
Enrolled agents exclusively deal with tax matters such as audits, appeals, and collections. They are further authorized to appear before the IRS on behalf of their clients. Their practice rights are boundless, meaning they can handle all tax issues and represent any taxpayer in any IRS office.
Once you become an Enrolled agent, you are required to renew your PTIN – Preparer Tax Identification Number- annually, obtain continuing education and finally renew your enrolled agent status every three years.
Tax professionals are highly targeted by cybercriminals due to the nature of client data they hold. If client data is compromised during a file transfer or in their storage, it would mean financial and reputation loss, among other damages. Therefore, enrolled agents should consider trusted secure file transfer services when sharing files with their clients and when filing taxes. One such service is the ICFiles, a product of Service2client.