What Is an Enrolled Agent? (And Why You’re in Good Hands If You’re Working With One)

Julie Herres
4 days ago
5 min read

If you’ve ever Googled “Who should do my taxes?” you’ve probably seen a whole alphabet of professional titles pop up: CPA, EA, tax preparer, accountant...

It’s enough to make your head spin.

While most people are familiar with CPAs (Certified Public Accountants), there’s another highly qualified—and federally licensed—accounting professional you might not know much about: the Enrolled Agent (EA).

And if your accountant is an EA? You’re in very capable hands.

What Exactly Is an Enrolled Agent?

An Enrolled Agent is an accounting professional licensed by the Internal Revenue Service (IRS). Unlike other credentials that are issued by state boards, the EA designation comes directly from the federal government.

That’s a big deal.

To become an EA, someone must either:

Work at the IRS in a qualifying role for five or more years or
Pass a rigorous, three-part exam called the Special Enrollment Examination (SEE)

This exam covers:

Individual tax law
Business tax law
Representation, practices, and procedures

Once certified, EAs are required to complete ongoing continuing education and adhere to a high standard of ethics and professional conduct.

So yes—this is a real, nationally recognized credential. And yes—you can absolutely trust an EA with your taxes, your business finances, and even IRS representation.

IRS Representation Rights? Let’s Talk About It.

Here’s something that surprises a lot of business owners:

Only three types of professionals can represent you before the IRS in all matters:

CPAs
Attorneys
Enrolled Agents

That means if you ever receive an IRS notice, have questions about back taxes, or need support during an audit, an EA can handle that entire process on your behalf.

No need to make phone calls, write letters, or try to navigate IRS jargon yourself. Your EA is fully authorized to step in and advocate for you.

That’s not just convenient—it’s protective. And it’s one of the many reasons this credential holds so much value.

The EA Focus: Tax Law and Tax Strategy

Where CPAs are trained in broad areas like accounting, finance, and financial statement audit, EAs are typically focused specifically on tax law. That laser focus is great news for business owners—because, let’s be honest, the U.S. tax code isn’t exactly simple.

EAs stay up to date on:

Current IRS rules and updates
Business deductions and credits
Tax planning strategies
Entity selection and structure (like LLC vs. S Corp)
Estimated payments and year-round tax prep

They’re trained to help you not just file your taxes—but also plan for them, which is one of the biggest missed opportunities we see in private practice finances.

What Makes the EA Credential Especially Helpful for Private Practice Owners

If you’re a therapist or group practice owner, you likely wear many hats: business owner, clinician, supervisor, bookkeeper (until you outsource it—please outsource it!), and unofficial HR.

You don’t have time to stay current on tax law or guess your way through IRS compliance.

That’s where EAs come in.

Enrolled Agents who specialize in small business (like the ones on our team at GreenOak Accounting) have the right mix of technical training and real-world experience to guide you through decisions like:

How much to set aside for taxes
When to switch to S-Corp status (and whether it’s worth it)
What you can legally deduct—and what’s risky
How to handle 1099s, payroll, and team compensation
And how to avoid the “April surprise” that comes from under-planning

An EA can also run point if you ever need help responding to the IRS—no panic required.

You Might Not Recognize the EA Title—And That’s Okay

We totally get it. Because Enrolled Agents aren’t as heavily marketed as CPAs, many practice owners don’t know what the credential is—or what it qualifies someone to do.

But now you do.

And more importantly, now you know that if your accountant is an EA, you’re working with someone who:

Is licensed by the IRS itself
Has passed extensive testing or has real IRS experience
Specializes in tax law and planning
Can represent you before the IRS anywhere in the U.S.
Is required to stay up to date on tax code and compliance

In short? They’re absolutely qualified to help guide your business’s financial future.

State Matters: EAs Can Represent You at the State Level Too

We’ve talked about how EAs are federally licensed to represent you before the IRS—but here’s something that might surprise you:

States recognize the EA credential, too.

That means your EA can also help you with state tax issues: filing corrections, responding to notices, and even advocating for you in the event of a state-level audit. Whether it’s a letter from your state’s Department of Revenue or a complex issue involving sales tax, your EA has the training and authority to jump in and represent you.

In other words, you don’t need to juggle multiple professionals. Your EA can be your one-stop shop for both federal and state tax representation.

A Word of Caution About Unlicensed Tax Preparers

This might come as a surprise, but:

You don’t actually need a license to prepare tax returns in the U.S.

(Shocking, we know.)

That means anyone—literally anyone—can charge money to prepare a tax return, regardless of whether they’ve had any formal training or passed any sort of exam. And unfortunately, some unlicensed preparers give dangerously bad advice.

🚩 Major red flag: If someone “prepares” your tax return but then asks you to file it yourself—without their name or Preparer Tax Identification Number (PTIN) on it—walk away. That’s a huge warning sign. They’re likely trying to avoid accountability if something goes wrong.

Also, be wary of anyone who promises a guaranteed refund or says they can “maximize your deductions” without seeing your financials. Licensed tax professionals (like EAs and CPAs) are not allowed to guarantee specific tax outcomes—it’s considered unethical and misleading.

Now let’s be clear: Not all unlicensed professionals are shady or unqualified. In fact, many amazing accountants and bookkeepers don’t hold a credential like CPA or EA—and that’s totally fine. Plenty of folks on our own team are brilliant, experienced professionals who do incredible work in roles like bookkeeping, accounting, and CFO-level advising. Those roles don’t require a license, and a credential isn’t always necessary to deliver high-quality, ethical service.

But when it comes to filing a tax return, there’s a big difference. Only certain professionals—like CPAs, EAs, and attorneys—are held to federal standards, required to stay current on tax law, and allowed to represent you if something goes wrong with your return.

Your taxes aren’t a guessing game. They’re a legal filing. Work with someone who has the credentials and the ethics to do it right.

Credentials Matter—But So Does Trust

At GreenOak Accounting, we have both CPAs and EAs on our team. And we care deeply about hiring professionals who know their stuff and understand the world of private practice.

Your GreenOak Accountant has been trained to support businesses like yours—and they have access to an entire team of professionals behind them.

So the next time you hear “EA” and wonder what it means, you can feel confident that you’re working with someone who is highly trained, deeply focused on taxes, and committed to helping your practice succeed.

📌 Looking for tax guidance from someone who knows therapy practices inside and out?

We’d love to help. Book your free consultation and let’s talk about how we can support you year-round. 👉 Schedule your free consultation here

This article is designed to provide information only and should not be considered legal or tax advice. Because of the complexity of the law and the variables in your own personal tax situation, you can’t rely on our advice specifically related to your unique circumstances. In order to get the best tax savings and legal advice available to you, you should consult with your own accountant, attorney, or advisor regarding your particular facts and circumstances.

GreenOak Accounting specializes in working with private practice owners across the United States. For more information on our services, visit our website.