Enrolled Agent
IRS Defenition: An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee. Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.
Robo Call: Hey, it's Jessica. I'm calling you from tax resolution center. Give me a call back at 844-XXX-NNNN. It's regarding your back tax debt. I've got some great news for you, actually with some new changes that have recently taken effect, and I just wanted to discuss your repayment or eliminations options. It is imperative that I speak to you just as soon as possible. So I'll give you my number. Again, it's 844-XXX-NNNN. I'm looking forward to hearing from you. Have a great day. And if you'd like to opt out on future calls, please just call back
From an online ad for a tax resolution service: This industry is filled with operators who do not practice with high ethical standards or employ people with sufficient experience. For your sake, I urge you to review my website found at www.xxxxxxxxxx.com. for information I have put together to steer the public away from being scammed by these unscrupulous, online tax relief predators.
From West Metro Tax: I decided to become an Enrolled Agent when I started this business in 2013 because I thought it would be a nice way to add a little credibility to my new enterprise. My only business plan was to prepare taxes. Being an enrolled agent allows me to resolve issues that result from the returns I prepare. I will sometime work with people who are not my customers that have received a letter from the IRS and need to provide a response.
The tax resolution services offered by Enrolled Agents that we see advertised are part of the IRS program called Offer In Compromise. This is a program that can result in a reduction in the IRS tax debt of an individual if they are accepted into the program. About one third of the applications are accepted into the program. The tax resolution business has a bad reputation largely because they overpromise on the results. A taxpayer using these services must put up a down payment for the work and two thirds of the applications are rejected.
Resolving an IRS problem has become much more difficult in recent years, and I don’t anticipate any significant improvement in the near future. Staffing issues and increased security requirements, combined with outdated technology and weak leadership have all contributed to this situation. My solution to all of this is to focus on my tax preparation process and try to avoid any errors that may cause a problem.
Calling the IRS isn’t really much of an option these days. Even though I have access to a priority line for tax preparers, it can take me days of trying to reach an operator. I don’t know how taxpayers get through to a person, but it does happen, people tell me so. Then there are problems with the operators themselves. I have had too many calls recently where the operator was either unhelpful or rude. Like I just said, the best solution is to avoid problems or write letters.