Enrolled Agents

Gregory J. Cook, EA, CPA+
Accredited Tax Advisor
Past President Alabama Society of Enrolled Agents
Past President Alabama Association of Accountants

Enrolled Agents

What is an Enrolled Agent (EA)?
An EA is an individual who has demonstrated technical competence in the field of taxation and can represent taxpayers before all administrative levels of the Internal Revenue Service.

What does the term "Enrolled Agent" mean?
"Enrolled" means EAs are licensed by the federal government. "Agent" means EAs are authorized to appear in place of the taxpayer at the Internal Revenue Service. Only EAs, attorneys and CPAs may represent taxpayers before the IRS. The Enrolled Agent profession dates back to 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings with the Treasury Department.

How can an EA help me?
EAs advise, represent and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and entities with tax-reporting requirements. EAs prepare millions of tax returns in a typical year. EAs' expertise in the continually changing field of tax law enables them to be effective representatives when taxpayers are audited by the IRS.

What are the critical differences between EAs and other tax professionals?
Only EAs are required to demonstrate to the Internal Revenue Service their competence in matters of taxation before they may represent a taxpayer before the IRS. Unlike attorneys and CPAs, who may or may not choose to specialize in taxes, all EAs specialize in matters of taxation. EAs are also the only taxpayer representatives who receive their right to practice from the United States Government. (CPAs and attorneys are licensed by the states.) Because of the difficulty in becoming an EA and keeping up the required credentials, there are fewer than 30,000 EAs in the United States.

News and Articles from Bara Business Center

Greg Cook

Greg Cook on the Recovery Act ...

The Recovery Act was passed by Congress and signed into law by President Obama on February 17, 2009. The purpose of the $787 billion Recovery package is to jump-start the economy to create and save jobs. The Act specifies appropriations for a wide range of federal programs, and increases or extends certain benefits under Medicaid, unemployment compensation, and nutrition assistance programs. The legislation also reduces individual and corporate income tax collections (to an extent), and makes a variety of other changes to tax laws.

dollars

This Act will have far reaching consequences and we will be dealing with it for years to come (at least until 2018). Twenty-eight different agencies – such as the Departments of Education; Health and Human Services; and Energy – have been allocated a portion of the $787 billion in Recovery funds. Each agency develops specific plans for how it will spend its Recovery Act funds. The agencies then award grants and contracts to state governments or, in some cases, directly to schools, hospitals, contractors, or other organizations. The agencies are required to file weekly financial reports on how they are spending the money and their specific activities related to Recovery funds.

Tax Dept

	Individual Tax Adoption and Taxes Charitable Gifts Divorce and Taxes Estimated Tax Payments How Long Should I Keep Records? IRS Net Worth Audit Moving Expense Qualifying Income Self-Directed IRA Rules Selling Your Home Stock Losses Transportation Expense Work at Home Income Tax 1099-B 2008 Basic Tax Law Changes 2008 Stimulus Payments Capital Losses Depreciation Deduction Disposition of a Car Foreign Earned Income Foreign Tax Credit History of the IRS Related Party Transactions Sources of Federal Tax Law Tax Lien Vehicle Expense Deductions
	Corporate Tax Cost Segregation IRC Section 409A S Corporation Section 179 Deduction Tax Year Partnership-Other Built In Gains Filing Electronically Information on AlaTax IRS Interest Rates 1975-1986 IRS Interest Rates 1987-1998 IRS Interest Rates 1999-2006 IRS Interest Rates 1999-2006 IRS Interest Rates 2007-2010 IRS Publications MACRS Section 179 Election Startup Costs Tax Identification Numbers Tax Write-Off for Trucks, Vans and SUV's
	Equine Horse Training Business Boarding Horses Breeding Horses Farm Related Agriculture Tax Information Patronage Dividends Tobacco Growers Settlement Agriculture Tax Information Cancellation of Debt Commodity Credit Corporation Loans Weather Related Sales Crop Insurance Farm Income Averaging Fuel and Road Use Tax Items Purchased for Resale Net Operating Losses Patronage Dividends Prepaid Farm Expenses Soil and Water Conservation Tobacco Growers Settlement

Keeping Good Tax Records

You can avoid headaches at tax time by keeping track of your receipts and other records throughout the year. Good recordkeeping will help you remember the various transactions you made during the year, which in turn may make filing your return a less taxing experience.

Records help you document the deductions you’ve claimed on your return. You’ll need this documentation should the IRS select your return for examination. Normally, tax records should be kept for three years, but some documents — such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property — should be kept longer.

In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return:

Bills, Credit card and other receipts, Invoices, Mileage logs, Canceled, imaged or substitute checks or any other proof of payment, and ...

Any other records to support deductions or credits you claim on your return.

Good recordkeeping throughout the year saves you time and effort at tax time when organizing and completing your return. If you hire a paid professional to complete your return, the records you have kept will assist the preparer in quickly and accurately completing your return.