An Enrolled Agent (EA) is a must-have for any small business. Business taxes can be confusing and intimidating. An EA will help you cut through the legal jargon and qualify for making the most out of your tax dollar.
What Is An Enrolled Agent?
An Enrolled Agent is a tax advisor that is certified through the federal government. EA’s must take courses and pass several exams to qualify for the certification. In addition, EA’s must complete 72 hours of continuing education every three years. Enrolled Agents have the highest credential given by the Department of Treasury, and they can represent a taxpayer who is being audited or in collections with the Internal Revenue Service (IRS).
Differences Between an EA and a CPA
EA’s are experts in taxes. They cover individual taxes and business taxes. Because they have strict requirements in continuing education, an EA stays current on changes in tax codes and regulations. Since an EA is federally certified, they can do taxes across state lines or for businesses who operate in multiple states.
A certified public accountant (CPA) is more of a generalist. Their studies focus more on a broad range of accounting skills. CPA’s cover accounting and financial services to businesses. They must take an exam administered by the AICPA but are not required by the IRS to take continuing education in taxation. CPA’s are licensed by the state they practice in and can only practice within that state.
Why Should You Have an EA Do Your Business Taxes
An Enrolled Agent is unique in their knowledge of tax laws. Often a business will overpay what they owe the IRS because they do not understand the tax code. Depreciation and amortizations are very complex. In addition, Enrolled Agents understand business taxes. They help your business get all the deductions you are capable of receiving. Also, an EA is the only person who can represent you if you are audited or have to go to court. An EA can also communicate directly with the IRS on your behalf, and they may also submit written advice to a third party about business transactions and their implications.
Let Us Help You With Your Business Taxes
Balanced Account and Tax Services has been in business since 1989. Owner, Yitzchok Stern, a federally licensed Enrolled Agent, is proud to have little client turnover. He understands your business taxes and keeps current on tax laws. At Balanced Account, we prepare business returns for C-Corporations, S-Corporations, and Partnerships, as well as payroll and sales tax reporting. We can also represent our clients before the IRS and state tax authorities.