What is an ENROLLED AGENT?

What do the initials EA stand for? It might stand for Exceptional Accountant, or Extremely Able or how about Excellent Aptitude. While these terms accurately describe our services, neither is the correct answer. Erik O. Klumpp, founder and president of Chessie Tax, LLC is an EA, or Enrolled Agent. Every year the IRS administers an extensive examination about income tax law concerning individuals, and business entities (corporations, partnerships and limited liability companies, estates and trusts). There are three exams that each take 3.5 hours to complete. Those who pass all parts of this rigorous test, and pass an IRS background check, are awarded the designation Enrolled Agent. Because Enrolled Agents demonstrate substantial knowledge of the Internal Revenue Code, they are granted the same powers, in administrative matters before the IRS, as an attorney or a Certified Public Accountant.

This means that Chessie Tax can represent clients before the IRS (for instance in matters of tax issue disputes, at tax return audits, or in collection negotiations), execute certain tax-related documents for taxpayers, and pursue representation of taxpayers to the Appeals division of the IRS. Enrolled Agents are controlled and guided by IRS Circular 230 that concerns the same standards of practice and ethical considerations as attorneys and CPAs.

Enrolled Agents are required to re-enroll every three years. To qualify for re-enrollment the EA must have completed 24 hours of continuing professional education each year, two of the annual hours must be on the subject of ethics.

An EA is a person with demonstrated ability in the field of income tax law knowledge and interpretation. The IRS recognizes their abilities, and they can work with and for taxpayers in all matters of administration before the IRS. In addition they are known for their understanding of IRS tax return and collection processes.

For more information, visit the Internal Revenue Office’s website.

Chessie Tax offers expert advice and guidance for tax preparation, tax planning, and IRS representation. We are currently serving Rochester Hills, Rochester, Troy, Clarkston, Royal Oak, Utica, Metro Detroit, and surrounding areas. We also work with clients virtually throughout the United States through the use of technology.