What enrolled agents can do that tax preparers can’t: the power of unlimited representation

As a tax preparer, you might wonder, can I represent my client in an IRS audit? Or, do I need to be an enrolled agent (EA) to negotiate with the IRS on my client’s behalf?

The short answer is that your representation rights may be limited without having an EA designation.

EAs possess unlimited rights to represent any taxpayer before the IRS, whereas noncredentialled tax preparers face more restrictions.

Let’s explore why client representation matters and how becoming an EA expands your services.

Who can represent clients before the IRS?

Not all tax professionals have the same authority.

• PTIN holders (no AFSP or credentials): Can only prepare returns – no representation rights for returns prepared after Dec. 31, 2015.
• AFSP participants: Can represent clients only for returns they prepared and signed, and only before revenue agents, customer service reps and similar IRS employees, including the Taxpayer Advocate Service.
• CPAs and attorneys: State-licensed professionals with unlimited rights, but may not have expertise in taxation or tax disputes.
• Enrolled agents (EAs): Federally enrolled with unlimited rights to represent any taxpayer before the IRS.

Unlike CPAs and attorneys, who may not specialize in taxes, all EAs specialize in taxation. They are the only professionals required to prove competence in taxation, representation and ethics before earning unlimited IRS representation rights.

Where an EA’s expertise is needed

1. IRS audits

EAs can assist in audit and letter responses, addressing all issues the IRS has raised, regardless of whether the EA prepared the examined returns.

2. Collections and payment plans

Clients with tax debt face liens, levies or wage garnishments. EAs can negotiate installment agreements, penalty abatements and settlements.

3. Appeals and IRS disputes

If the IRS makes an unfair ruling, an EA can file an appeal and advocate for their client. While generally only attorneys argue in Tax Court, EAs can handle most pre-court negotiations.

How an EA helps taxpayers

Your client, Sarah, receives an IRS audit letter. If you’re a PTIN holder without AFSP credentials, the help you provide would be very limited.

Sarah would either be alone or need to find other assistance.

As an EA, you would be able to:

• Communicate directly with the IRS on Sarah’s behalf
• Challenge any incorrect audit findings
• Negotiate any potential penalties

Instead of facing the IRS alone, Sarah now has a pro defending her.

If you’re not an EA, you can only go so far for your clients. When the stakes are high – like audits, appeals or collections – the limitation could cost your client… and you.

Why becoming an EA is a good idea

• Defend clients in serious IRS matters
• Expand beyond tax prep into representation and resolution
• Increase your income
• Represent clients in all 50 states

EAs have advantages and privileges with the IRS that unenrolled tax preparers don’t.

With unlimited representation rights, EAs can fully advocate, negotiate and defend any client.

Next steps: access free EA study tools with NATP membership

To help tax professionals achieve this goal, the National Association of Tax Professionals (NATP) offers free Gleim EA exam study tools to its members. By joining NATP, you can access exclusive SEE exam study materials, expert guidance and a network of professionals dedicated to advancing their careers.

Becoming an EA not only enhances your skills but also gives you a competitive edge in a rapidly changing industry. Whether you’re looking to expand your services, increase your earning potential, or safeguard your career from automation, now is the perfect time to take action.