Roles Of An Enrolled Agent CE

By Eula Clarke


Enrolled agents are tax practitioners that are empowered by the government to represent the interests of taxpayers. They represent taxpayers in the Internal Revenue Service, IRS. In the US, these professionals receive their empowerment from the department of the treasury. This means that these individuals are very important to the government and to you as a taxpayer. For that reason, it is important to understand the roles of enrolled agent CE and general information on how you can hire them.

In taxation matters, enrolled agents play a critical role. They serve as advisers and representatives to variety of individuals. They are involved in filing taxes for non-profit organizations, sole proprietorships, corporations among other business entities including resident aliens, international businesses, on-resident aliens and new immigrants.

They are involved in tax preparation to a number of filers. These filers may include trusts, estates, partnerships, individuals and corporations. Bearing in mind that taxation is subject to changes yearly, it is important for these individuals to be regularly trained on new strategies and procedures. The IRS requires them to participate in a 72-hour professional education after a period of three years. The purpose of this education is to retain their status.

These professionals may also be involved in helping the IRS in audit responses, levies, collection matters among other IRS procedures. They are required to be trustworthy, credible and convenient. This is because they have a critical responsibility to serve the taxpayer. As a taxpayer, you do not want to be served by incompetent persons that cannot be relied.

If you consider hiring an enrolled agent, it is the most critical first step in solving your taxation problems. However, this does not guarantee that your headaches about taxation are gone. It only means that you stand better chances to solving your taxation problems compared to another individual who may seek assistance from lesser trained individuals or companies. The fact these specialists are government affiliated means that you will be served with the highest level of expertise on the field of taxation. Think about the accountability between these specialists and the department of treasury and find that it is very comforting.

However, it is a wise idea for these specialists to protect themselves. Protecting themselves as preparers of tax is necessary because their job exposes them to many risks. They have the ability to safeguard themselves from litigation. This can be achieved by purchasing professional insurance policies. The purpose of the policies is to protect them from errors made during the process of tax preparation.

Enrolled agents cannot at any cost be forced to reveal any information shared between them and the taxpayer. Authorities including the IRS should not try to interfere with client privileges and confidentiality. However, this client privilege and confidentiality does not involve state tax matters. Another type of tax that may require full disclosure of information shared between the taxpayer and the professional is file tax returns preparation.

Recently, persons that are involved in tax returns preparation including the agents, the law requires them to possess Tax Identification Numbers. IRS brought about the rule for tax preparers to possess PTIN. It aims at regulating the industry of tax preparation that was initially unregulated. For tax preparers obtain PTIN, they have to create account. They should also pay a fee of $64.25.




About the Author:



No comments:

Post a Comment