Every year, both businesses and individuals must file their tax returns. Most of the time, businesses and individuals do not do this task on their own, because it is time-consuming and complicated. Tax preparers and financial advisors can be of assistance in this situation. However, not every tax preparer possesses the same expertise, credentials, and certification. As enrolled agents are tested and certified, they are the actual tax preparers. What is an enrolled agent? Continue reading to know about the EAs.
Unfortunately, many people are not aware of them. One of the reasons for this is there are very less enrolled agents in the country. Since enrolled agents have practically unrestricted practicing privileges, there are no limitations on the kind of tax issues they can handle or the categories of taxpayers they can represent.
Wondering whether your business requires an enrolled agent or not? However, the tax services an enrolled agent offers are quite advantageous for most businesses. Apart from bookkeeping, they offer various tax services which would be very helpful to your business. If you have an audit, you can give power of attorney to an EA. In fact, EA can support you in an audit. Enrolled agents can also assist you were questioned by the IRS about taxes.
EAs can make you understand which business-related expenses can be deducted from taxes. Do you file tax returns for your company in more than one state? An EA will come in very handy in that situation! EAs are allowed to work in many states, unlike CPAs who are only permitted to do so in their home state. However, a CPA can adequately manage your returns if your company files return in just one state.
Before hiring an EA, ensure that you read the reviews online. It is also important to check their license before hiring. As most of the EAs have their website online, check them to know about their details such as experience, qualifications, etc. Check if any of your friends have an idea about the EAs. Take their suggestions and do your research to find the best EA from the options available.