First Choice Accounting, LLC & 1031 Exchange, Inc. 

 

 

 

 

 

 

 

 

 

 

 

 

As an  "enrolled agent"  Michelle A. Jolley  of  First Choice has earned  the privilege of practicing, that is, representing taxpayers, before the Internal Revenue Service. Enrolled agents, like attorneys and CPAs, are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can practice before. First Choice is providing the most up-to-date accounting tools and personal service in an ethical and honest way and all this for less than a CPA would charge.


 

Definition of an “enrolled agent” 

“Enrolled” means to be authorized to practice by the federal government, and “Agent” means authorized to appear in the place of the taxpayer at the IRS.  Only Enrolled Agents, attorneys, and CPAs may represent taxpayers before the IRS.  The Enrolled Agent profession dates back to 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings with the U.S. Treasury Department. 



Education

The license is earned in one of two ways, by passing a comprehensive examination which covers all aspects of the tax code, or having worked at the IRS for five years in a position which regularly interpreted and applied the tax code and its regulations.  All candidates are subjected to a rigorous background check conducted by the IRS.

 

In addition to the stringent testing and application process, the IRS requires Enrolled Agents to complete 72 hours of continuing professional education, reported every three years, to maintain their Enrolled Agent status.  NAEA members are obligated to complete 90 hours per three year reporting period.  Because of the knowledge necessary to become an Enrolled Agent and the requirements to maintain the license, there are only about 46,000 practicing Enrolled Agents.


How Can An Enrolled Agent Help
Enrolled Agents advise, represent, and prepare tax returns for individuals,  partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements.  Enrolled Agents’ expertise in the continually changing field of taxation enables them to effectively represent taxpayers audited by the IRS. 


Confidentiality
The IRS Restructuring and Reform Act of 1998 allow federally authorized practitioners (those bound by the Department of Treasury’s Circular 230 regulations) a limited client privilege.  This privilege allows confidentiality between the taxpayer and the Enrolled Agent under certain conditions.  The privilege applies to situations in which the taxpayer is being represented in cases involving audits and collection matters.  It is not applicable to the preparation and filing of a tax return.  This privilege does not apply to state tax matters, although a number of states have an accountant-client privilege.

 


Ethical Standards

Enrolled Agents are required to abide by the provisions of the Department of Treasury’s Circular 230, which provides the regulations governing the practice of Enrolled Agents before the IRS.  NAEA members are also bound by a Code of Ethics and Rules of Professional Conduct of the Association.

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