What is an enrolled agent?
An enrolled agent is someone who is recognized by the U.S. Department of Treasury as a tax advisor and federally-authorized tax practitioner. They typically work for accounting or tax firms, or they can be self-employed. They help individuals and businesses with their tax preparation.
Roles and responsibilities of an enrolled agent
Enrolled agents have a variety of roles and responsibilities to fulfill to meet the needs of their clients and comply with IRS rules and regulations. Some tasks they complete include:
- Represent clients (taxpayers) relating to issues with their taxes to the IRS.
- Maintain client confidentiality regarding tax information and personal documents.
- Perform audits and appeals on behalf of their clients.
- Provide tax advice to clients in adherence with IRS rules and regulations.
- Teach clients about tax laws and regulations and how they affect their business.
- Complete basic accounting tasks such as updating financial records and reviewing bank statements.
- Pursue continued education courses each year to maintain licensure.
- Check in with previous clients to provide additional services.
- Answer client calls and set up appointments to meet about their taxes.
- Help clients identify potential liabilities on their balance sheet.
- Create a tax plan for clients for future use.
- Calculate deductions and other exceptions that could contribute to a client paying less in taxes.
Benefits of hiring an enrolled agent
Here are some of the ways that hiring an enrolled agent can benefit your business:
- Allows you to focus on other aspects of your business:By hiring an enrolled agent to help with tax preparation and other accounting needs, you can put more focus toward other areas of your business such as sales and marketing, employee onboarding or day-to-day operations.
- Provides your business with extensive tax expertise:Enrolled agents are considered to have the highest credential a tax professional can receive. This, paired with their continued education requirements, means that they have up-to-date and advanced knowledge in tax-related matters.
- Helps small businesses in lieu of accounting departments:If you operate a small business or a sole proprietorship, an enrolled agent could potentially help you perform certain duties that would normally be assigned to members of an accounting department. For example, they could help you prepare and file your taxes or your tax return.
