What’s an “EA?”
Wyntax was founded by an Enrolled Agent, or EA. Though you can refer to an Enrolled Agent as an accountant, the designation differs from CPA. Enrolled Agents are tax professionals licensed by the IRS. They specialize in tax matters and are authorized to represent taxpayers before the IRS for tax issues such as audits, collections, and appeals. EAs have in-depth knowledge of taxation laws and regulations, enabling them to provide expert advice on tax planning, preparation, and compliance. They're often seen as tax specialists with a focus on the complexities of the tax code.
An EA’s training and expertise revolves around tax codes, regulations, and tax-related issues. As a result, they might have a more in-depth understanding of tax matters than some CPAs whose expertise spans a broader scope of accounting and financial fields. EAs are authorized by the IRS to represent taxpayers in all matters, including audits, collections, and appeals. Their intimate knowledge of IRS procedures and tax laws allows them to efficiently navigate and handle complex tax situations on behalf of their clients.
To become an EA, individuals must pass a comprehensive IRS exam that focuses solely on taxation. This rigorous examination ensures that EAs have a thorough understanding of tax laws, making them highly qualified in this specific domain.
History of the EA
1862:
During the Civil War, there was a need for a way to ensure that taxes were accurately assessed and collected. The Commissioner of Internal Revenue introduced a new role known as an "Enrolled Agent" to help individuals with representation before the newly created Bureau of Internal Revenue, the predecessor of the Internal Revenue Service (IRS).
1884:
Congress formally recognized Enrolled Agents in the United States as a result of the need for tax professionals who could represent citizens dealing with the U.S. Treasury Department. This recognition was established through the passage of the "Enabling Act," allowing Enrolled Agents to represent taxpayers in all matters connected to taxation.
1913:
With the ratification of the 16th Amendment to the U.S. Constitution, which established the federal income tax system, the demand for tax professionals grew. Enrolled Agents became a crucial part of the tax representation process.
1921:
The U.S. Department of Treasury issues Circular 230, setting forth rules and regulations governing practice before the Internal Revenue Service (IRS). This circular establishes standards for individuals representing taxpayers before the IRS, including enrolled agents, attorneys, CPAs, and other tax practitioners.
1972:
The IRS established the Special Enrollment Examination (SEE) to ensure that Enrolled Agents had a certain level of knowledge and competence. Passing this exam became a requirement for attaining the EA status. This year also saw the establishment of the National Association of Enrolled Agents (NAEA).
1984:
Enrolled Agents gained the privilege of unlimited practice rights, meaning they could represent any taxpayer before any IRS office. This status gave EAs a substantial level of authority in matters related to tax representation.
ToDay:
Enrolled Agents continue to be an integral part of the tax professional community. They are recognized by the IRS as tax experts with the highest level of competence and are authorized to represent taxpayers in all tax matters, including audits, collections, and appeals.