21. An Enrolled Agent serves private-sector clients in her professional practice

Question

21. An Enrolled Agent serves private-sector clients in her professional practice located in Norfolk, Tennessee. Prior to working in the private sector, she worked as a sales tax auditor for the state of Tennessee.

A client who has a state sales tax problem has asked her for advice about how the Tennessee sales tax authorities are likely to challenge her tax position.

a. Is this Enrolled Agent subject to any restrictions or duties in continuing to represent this client? Explain?

b. Do you have any recommendations for this Enrolled Agent? Explain?

Explanation / Answer

1) An enrolled agent is now no more actively working as sales tax auditor for the state. Since she already worked for IRS, she will be in a position to advice the client but cannot challenge the tax position.

Any enrolled agent in active status who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS and can also advice the clients on any tax related queries. In this case, since the enrolled agent is no more working for IRS, she is restricted to challenge the tax position of the client. But, as a friendly gesture, and as a duty towards serving her client, she can just advice the client on this matter.

2) One suggestion i have for this enrolled agent is - she can enroll herself as an ex-IRS agent. By doing so, she will be able to help her clients on tax related work.

As per IRS, certain former IRS employees can become an enrolled agent without taking the Special Enrollment Examination by virtue of past experience with the IRS. In general, the experience must include at least five years in one of these taxpayer-facing field positions: appeals officer, special agent, revenue officer, revenue agent, tax specialist, tax law specialist, or settlement officer. Three of the five qualifying years must have occurred within the last five years prior to separation from the IRS.

If enrolled agent meets the above requirements, then she can be eligible to work as enrolled agent and will be able to help the clients.

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.