The Evolution of Enrolled Agents: A Brief History

Enrolled agents (EAs) have played a crucial role in the U.S. tax system for over 140 years. As we at Bloom Financial Group reflect on this profession, exploring its origins and evolution is fascinating.

Evolution Dating back to the Civil War Era

The profession of enrolled agents traces its origins to 1884, following the Civil War. At that time, many individuals encountered difficulties with war claims submitted to the Treasury Department. Recognizing the necessity for capable representatives to advocate for these citizens, Congress passed legislation permitting the enrollment of agents to aid in claim resolution.

Fun Fact: The term "enrolled agent" stems from being "enrolled" to practice before the Treasury Department.

Broadened Responsibilities

With the introduction of income tax in 1913, the responsibilities of enrolled agents expanded to encompass tax-related affairs. This marked a significant transition for EAs, who began to primarily focus on tax preparation and representation before the Internal Revenue Service (IRS).

Pathway through IRS Experience

A notable aspect of the enrolled agent licensing process is the provision for former IRS employees to attain enrolled agent status without taking the Special Enrollment Examination (SEE). Former IRS employees can qualify for enrolled agent designation if they have a minimum of five years of continuous employment with the IRS, where they frequently applied and interpreted the Internal Revenue Code and its regulations. This experience should have been acquired within the 10 years immediately prior to their application for enrollment.

Eligible positions typically include Revenue Agents, Tax Compliance Officers, Tax Examiners, Appeals Officers, Special Agents, and Attorneys in the Office of Chief Counsel. While these former IRS employees must still undergo a background check and fulfill other requirements, they are exempt from taking the SEE due to their extensive practical experience with tax laws and regulations.

Continuing Education Mandate

In 1978, the IRS introduced continuing education requirements for enrolled agents to ensure they remain up-to-date with changes in tax laws. EAs are required to complete 72 hours of continuing education every three years.

Fun Fact: Enrolled agents are the sole federally licensed tax practitioners specializing in taxation and possess unrestricted rights to represent taxpayers before the IRS.

The profession of enrolled agents has progressed significantly since its inception during the Civil War era. Today, these tax specialists play a crucial role in guiding individuals and businesses through the intricate realm of taxation. The profession's advancement, from its historical beginnings to the acknowledgment of IRS expertise, showcases its adaptability and dedication to upholding high standards of proficiency.

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