Taxes what is an ea

It's not always black and white and requires an evaluation by each individual, but here are some general guidelines from the experts:. When you have out-of-state returns. Enrolled agents are the only taxpayer representatives who receive their unlimited right to practice from the federal government CPAs and attorneys are licensed by the states.

That means if you need to file in more than one state and eventually need representation before that state in an audit or resolution case, the same EA can do it, Pinck says. When you need help resolving an IRS dispute or expect to owe. Not only do EAs rates tend to be more affordable, they can their tax law expertise to represent clients in tax proceedings, audit hearings and appeals. EAs help ensure clients are treated appropriately by the IRS, work out payment plans on the best possible terms, and ensure the IRS follows laws that protect taxpayers, Miles says.

A little accounting guidance wouldn't hurt. If you own a small business, hiring a CPA with a bookkeeping and reporting background can help you get organized and on track for the next year. An audit of your business deductions, expenses and income is in order. Further topics for study are family partnerships, accounting methods, home office, employment taxes, cost of goods sold, accounting methods and income.

Another way to join this workforce is to have worked for the IRS for at least five years in a position that requires knowledge of the tax code. Regulations also require that once individuals are EAs they must take 72 hours of continuing education courses every three years and 16 hours annually in order to stay on top of ever-changing taxation laws and procedures.

A background check is run to ensure that they have filed their taxes on time and have no outstanding balances. They must demonstrate competence. Within the last 10 years there must not have been any felony convictions or felony convictions for dishonesty or breach of trust. Unlike CPAs, who are state-based, these tax experts can represent you anywhere in the country.

Most require at least a bachelor's degree and at least two years of public accounting experience. EAs and CPAs are both knowledgeable, experienced professionals who are required to maintain high ethical standards. So, how do you know when to work with one over the other? That depends on the type of services you need. If you need help with an IRS issue, such as a collection problem or an audit , then an EA might be your best bet.

Those that specialize in tax preparation can also typically help you with tax and financial planning, accounting needs, and most other financial tasks that you might have. Look to a CPA to identify the credits and deductions you qualify for to increase your tax refund and help lower your tax bill. Additionally, if you have broader accounting needs — for instance, your bank requires a reviewed financial statement to comply with loan covenants — then working with a CPA can be beneficial.

Looking for expert tax help? You can get a final review of your tax return before you file to ensure your taxes are done right, or you can even have a dedicated tax expert do your taxes for you, from start to finish, with TurboTax Live Full Service. TurboTax Live experts are highly knowledgeable, with an average 12 years experience in professional tax preparation. Talk to a live tax expert and get a final review of your simple tax return with TurboTax Live Basic. Guaranteed done right.

What is an Enrolled Agent for Taxes? How to Start Tax Planning. Tax Attorney vs. CPA: What's the Difference? Estimate your tax refund and where you stand Get started.