Do You Need an Enrolled Agent? Pasadena’s Top Financial Advisers Figueroa & Co. Will Show You How and Why!

Figueroa & Co. are Pasadena’s premier financial and taxation consultants who are passionate about what they do best. We are at your service to explain and assist in all financial matters. Our aim is to help grow and develop your business.

An Enrolled Agent assists both individuals and businesses to resolve their IRS tax dilemmas. This federally- endorsed tax professional has practical knowledge in the complicated field of tax and has been authorized by the U.S.A Department of Treasury to act for taxpayers in relation to all the administrative levels found in the Internal Revenue Service(IRS) in the areas of auditing, tax collections and tax appeals. Due to the experience of Enrolled Agents, they are able to negotiate the best solutions for those who are having problems with tax issues.

The Role of an Enrolled Agent

The term “enrolled” in relation to tax means that the person has a license to practice in this area. This will have been confirmed by the Federal Government, and for tax purposes the term “agent” means that the person has been authorized to act on behalf of the taxpayer on matters to do with the IRS. It is only, enrolled agents and CPAs who have the capacity to represent taxpayers before the IRS. The profession of enrolled agent is nothing new in the U.S. In fact, the role first emerged in 1884 after dubious claims had been put forward for Civil War victims. Congress quickly acted to control individuals who acted as representatives on behalf of citizens when interacting with the Treasury Department in the US.

Pasadena Enrolled Agents Compared to Other Tax Professionals

It is just Enrolled Agents who are required to establish in front of the IRS their proficiency in taxation matters before they are able to represent any taxpayer. They differ from lawyers and CPAs,  whose specialist areas may not be solely to do with taxes but every enrolled agents specializes in taxation.

Enrolled Agents can advise and represent as well as help to prepare tax returns for any individual, partnership, corporation, estate, trust, and any other entity which has a tax-reporting requirement. You really need a trained and approved expert to deal with any taxation issues, as so many changes take place all the time, that it is easy to fall foul of the rule on a taxation related matter and not know it. We are all supposed to know what are rights and obligations when it comes to the payment of taxes in the U.S!

Throughout the country, Enrolled Agents organize and submit a massive number of tax returns every year on behalf of taxpayers.

How Does One Become an Enrolled Agent?

The Enrolled Agent verification process is authenticated in a couple of ways. Each agent must either pass a challenging examination organized by the IRS covering key taxation areas to do with trusts, estates, individuals and partnerships and all the procedures involved.

The second route is through continuous employment by the Internal Revenue Service and this must be a period of no less than 5 years and has to be in a job that focuses on applying and interpreting the terms laid down in the IRS’s Code and any regulations. All candidates have to undergo stringent background checks conducted through the IRS.

As well as the formal testing and application procedures, an Enrolled Agent is required to undertake every three years, 72 hours of professional education in order to keep their position. As it is not that simple to become an Enrolled Agent and to keep the position, there are only around 30,000 practicing Enrolled Agents in the U.S.

An Enrolled Agent can be asked to forfeit his or her status if found violating the requirements laid down in Circular 230 authorized by the Treasury Department.

Enrolled Agent and Privilege

The IRS Restructuring and Reform Act permitted federally granted agents client privileges which approved the rights to privacy in certain situations that occurred between the individual taxpayer and an Enrolled Agent. This privilege only applies to circumstances involving collections and audit issues but does not apply to the preparing and submitting of tax returns. It is also not applicable in relation to state tax concerns. However, some states do have a client / accountant privilege.

Many of us who operate a business or are just an individual earning a living don’t always know who is approved to handle our taxation issues. We all want to be certain that when we pay for someone to prepare our annual tax return that the person has the competency to do a good job. There is nothing worse for a taxpayer to be confronted by an IRS official for not paying the required amount of tax and find that they are being accused of knowingly doing this when they thought that the person they paid to do the job was purported to be competent.

How Figueroa & Co.’s Enrolled Agents Can Help Pasadena Business Owners

To be certain that your tax relationship with the IRS is always legal, the best way to do this if you live in the Pasadena area is to contact Figueroa & Co., which has built up an enviable reputation for their ability to handle all taxation requirements for both individuals and businesses in a compassionate and caring way and ensure that their clients get all their tax benefits and entitlements.

In these harrowing economic times individuals and businesses must ensure they benefit from all tax concessions and breaks that are available. The knowledge that Figco has about up to date taxation matters could quite possibly be determining factors in the ongoing success of our businesses and yours.