Tax Preparation in the US? How an Enrolled Agent Helps With This & Role of an EA in Filing Taxes?

Most of us, at some point, need some kind of professional during tax filing. The IRS reports that the paid tax preparer reviewed more than half of the 150 million individual tax returns approximately filed every year. Many of these tax returns were filed with the help of a registered enrolled agent. 

If you are looking for tax preparation services or need an expert help, iLead Tax Academy –the No #1 enrolled agent training institute in Hyderabad offers reliable US tax consultancy services at very cost-effective prices.

We offer tax e-filing and annual returns filing services for all clients in varied sectors. Our expert CPAs and enrolled agents help you get your biggest refunds on time. In addition, if you want to pursue an accounting career, iLead offers the best enrolled agent training course in Hyderabad where you can embrace a recession-proof career.

In this article, we’ll take a look at what absolutely a registered enrolled agent is, what they can do for you, and why you should hire one to help you deal with your tax matters.

What is an Enrolled Agent and Why Should You Hire One?

An accredited enrolled Agent is a tax adviser who will represent you before the IRS-Internal Revenue Service, when you file your tax return, conduct an audit, resolve payment and recovery issues, or appeal a fine (for example). 

 Enrolled agents can get certified in 2 different ways:

  1. SEE Exam 

They can take a Special Entrance Exam (SEE), which covers all aspects of individual and corporate tax law, as well as issues related to tax representation, practice and procedures. Registered agents must also complete 72 hours of continuing education every three years to maintain their registered agent status. 

  1. IRS Working Experience     

If they have worked in the IRS for five years or more, they can obtain registered agent status without passing the SEE exam. Many registered enrolled agents are former IRS agents, so this option seems very popular. However, current IRS employees cannot be certified as registered agents. 

All registered agents also successfully passed the background check. It is safe to say that when you contact a registered agent, you are talking to someone who has a thorough knowledge of tax laws. 

What can a registered enrolled agent do? 

Registered agents have so-called unlimited exercise rights (sometimes called unrestricted representation rights). This means that they can help anyone, individual, business, and any other organization in any aspect of taxation. 

Enrolled agents can:

  • Help you with tax planning
  • Provide tax advice and also help you navigate through complicated tax rules
  • Prepare & file your tax returns
  • Deal with audits, payments, or collection issues
  • Assist you to deal with any other tax concerns

The iLead team can help you with tax filing and any other tax matters. This means you will quickly receive complete and accurate books to use for any need. Accounting aspirants also get the best training with the comprehensive US taxation course in Hyderabad 

What is the difference between CPA, Registered agent & an attorney

Registered enrolled agents are not the only professional tax preparers with unlimited practice rights – they also have Certified Public Accountants (CPAs), attorneys, and accountants. So what’s the difference? The first significant difference is that registered agents are pure tax professionals focused solely on tax compliance issues, while most accountants and lawyers are not. So, if you think your taxes are too complicated to file using online software and you need professional help, consider hiring a registered agent. 

CPAs do not necessarily specialize in taxes. They provide a range of services covering the entire accounting profession, including corporate finance, wealth planning, financial planning and reporting. If you need an expert to teach you how to position your business to minimize taxes, talk to a CPA who has tax filing and compliance experience. 

Even lawyers do not necessarily specialize in tax compliance. If you are merging or closing a business, considering a deal, getting a lawsuit, or looking for help with anything else that goes beyond pure tax or accounting advice, seek attorney’s help. 

How can I be sure that my tax advisor is legal?

 If you are not sure about the legality of a particular tax advisor or tax preparer, the IRS recommends that you find one at the Better Business Bureau. You can also personally request the IRS to verify the identity of the registered agent by sending an email to [email protected] with the agent’s name, address (if applicable) and agent number. 

Avoid hiring someone who bases their commission on a percentage of your income tax refund – most licensed professional tax preparers will never charge you such a fee. Also make sure they issue an electronic file as the IRS requires tax preparers to electronically file more than 10 clients. 

Never submit a tax document to the IRS without first verifying it, and make sure the originator signs the documents and includes a Taxpayer Identification Number (PTIN). Licensed Registered Agents, CPAs, and Attorneys have PTINs and are required by law to include them on all returns they are paid to complete. Also, never sign a blank statement.    

If your compiler asks, this is one of the most reliable signs that you are dealing with a tax preparation scam. 

So how can I hire a registered agent? 

Enrolled agents are committed  tax professionals who can help you with tax planning, prepare tax returns for you, and represent you in tax court if you run into problems with the IRS. If you have a tax issue that doesn’t require the involvement of a CPA or attorney, your best bet is to hire a certified enrolled agent. But how exactly are you going to hire him?     

In addition to keeping records, Bench can put you in touch with a Certified Registered Agent. Log into our network of accountants, ask to be contacted by a registered agent and we will help you set up correctly. You can also find the National Association of enrolled agents from the IRS directory.

The Takeaway    

Taxation is not always easy, especially if you are a freelancer or small business owner with special tax needs. A CPA or registered EA expert can help you navigate the tax code, make sure you fill out your taxes correctly, and save you a lot of tax season stress.