When things are taxing, Enrolled Agent comes to the rescue
These licensed professionals are the highest tax credential in the U.S.
It’s rarely good news when a letter from the Internal Revenue Service lands in your mailbox – except, of course, when it’s a refund check. That’s when it’s best to have an Enrolled Agent on your side. Despite the James Bond-sounding title, an Enrolled Agent isn’t a mysterious envoy but rather a licensed professional who is legally empowered to represent taxpayers in front of the IRS. Enrolled agents like John Warren of Medford Tax often toil in obscurity – there are only fewer than a dozen on Cape Cod – but these tax specialists often have knowledge even beyond CPAs and attorneys, and can not just prepare returns but also represent clients in audits, collections and appeals. Globe correspondent Cindy Atoji Keene spoke with Warren about handling tax matters for taxpayers.
“People call me in a state of panic. Maybe it’s someone who hasn’t filed their taxes in 10 years and just forfeited their driver’s license; or a self-employed businessman who is being audited. They get a letter from the IRS or Mass Department of Revenue and it’s dense and difficult to understand. It’s a lot of information to throw at someone. These are not problems that can be resolved in a week or two; sometimes it can take six months or more to get affairs in order. As you can imagine the IRS is overwhelmed with paper and information, so there’s a backlog there. The IRS really wants to work with taxpayers – I don’t feel that Big Bad Agency image is warranted. I represent tax payers who want to do the right thing. The IRS is going to be conducting random audits; if a tax return falls out of the norm, the computer will pull it aside. I can work with taxpayers to ensure tax returns are filed accurately. One big issue now is stolen I.D.s and phony returns on someone’s social security number; the IRS doesn’t know which is the real return. Even though the Enrolled Agent is a designation that most people haven’t heard of, we have been around for over a century. Being an Enrolled Agent is actually the highest tax credential in the U.S.; we need to pass a rigorous test and background check to earn our certification. Tax payers need to remember, on the other hand, that the tax preparation industry is largely unregulated; for $50 bucks, anyone can get a tax number and start preparing taxes. I do prepare taxes, of course, as one of my roles, and I do get some strange questions. For example, some people ask if they can claim an exemption for their dog – but they usually have a smile on their face.”
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