Tax Preparation

EAs are licensed by the federal government. It means that they are authorized by the U.S. Department of Treasury to appear in place of the taxpayer at the Internal Revenue Service (IRS). Only EAs, attorneys, and Certified Public Accountants (CPAs) may represent taxpayers before all administrative levels of the IRS for adults, collections, and appeals.

The EA profession dates back to 1884. After questionable claims had been presented for Civil War losses, the Congress acted to regulate persons who represented citizens to the Treasury Department.

Only EAs are required to demonstrate their competence in matters of taxation before they are allowed to represent a taxpayer before the IRS. Unlike attorneys and CPAs who may or may not choose to focus on taxes, all EAs specialize in taxation.

CPAs and attorneys are state-licensed, but EAs are the only taxpayer representatives who received their rights from the U.S. government. The EAs’ federal license allows them to represent taxpayers in any state in the U.S. and its territories.

EAs are required to abide by the provisions of the U.S. Treasury Department Circular 230. Any EAs who have violated the provisions contained in Circular 230 may be suspended or disbarred.

EAs advise, represent, and prepare tax returns for individuals and various entities with tax-reporting requirements. They prepare millions of tax returns each year. As experts who contribute in the changing field of taxation, it is their responsibility to effectively represent taxpayers who are audited by the IRS. They also deal with the IRS Collection Division on behalf of taxpayers.

In addition to the strict testing and application process, EAs are required to complete 72 hours of continuing professional education. The process is done every three years to maintain their status. Because it is difficult to become an EA and to keep up with the required credentials, there are no more than 30,000 active EAs in the U.S.