Searching for a person who can help you with your future tax filings? When it comes time to file your taxes, it may be hard to know where to start, and how to sort through all the documents and figures to file with the IRS.
You may even be confused about who you should hire to help with the tax filings in your company. We are proud to announce that IncParadise is now partnering with an Enrolled Agent (EA) so you can now get all the tax services and tax advice from one stop – IncParadise.
Not sure what an EA is and why an EA is the right person to help you with the tax filings? Keep reading to understand more.
What is an EA?
As per the National Association of Enrolled Agents (NAEA), an Enrolled Agent (EA) is a professional designation of a tax professional just like tax attorneys and CPAs. What sets them apart is that these tax professionals have been licensed directly by the IRS. Basically, an EA can help you with both personal and business tax returns, and represent you in front of the IRS.
The job of an Enrolled Agent came into being during 1913, when the income tax was passed. At this time, the job of the EA was to claim monetary relief for citizens whose taxes became inequitable. But as the estate tax, income tax, gift and other sources became complicated, the role of the EA evolved. Eventually, Enrolled Agents began to offer additional services that included the preparation of all tax forms.
Enrolled Agents also need to know all about taxpayer advocacy so that they can help in negotiating with the IRS on behalf of clients.
Duties & Responsibilities of an Enrolled Agent
Enrolled agents have the authority to represent taxpayers before the IRS at any level, except at the Tax Court. Only those who have passed the “Tax Court Exam For Non-Attorneys” are allowed to argue for taxpayers in the Tax Court. If the EA has passed this exam, they would also be eligible for arguing for the taxpayer in the Tax Court.
Out of all the EAs, most perform tax practices and directly compete with the bookkeepers, CPAs and other accountants. And since the EA’s enrollment is by the government and a federal designation, they are able to work across borders. While attorneys and CPAs have to meet the interchange requirements of a state they wish to work in, they are not eligible to work in multiple states like an EA.
Even though Enrolled Agents perform all the accounting tasks and can even perform a few types of audits, they are limited in the fact that they cannot express an “unqualified” type of opinion. For instance, they cannot offer advice to a public company when they are filing for the financial statements with the Securities & Exchange Commission. But there is no need to have a SEC compliant audited statement for small non-public companies, which is why an EA can easily help with small businesses.
Benefits of Using an EA
Every tax professional is not the same and knowing the difference between tax professionals can help you a lot. It would help you in easily managing the tax liabilities that you may have. From before, you might have understood in detail what an enrolled agent is and how they are different from a CPA or other tax agents.
Well, then what is it that makes these EAs special and why should you approach them instead of a CPA? One main reason is that even if you own companies in many different states, you do not need to hire different tax professionals who are legally allowed to practise in a specific state. Instead, you can hire an EA who would be able to take care of all your companies together and would be legally able to represent you in front of the IRS.
But that is not all. There are many other reasons as to why an EA is what you need for your tax filings. Below are some advantages that would help you understand why an EA can be better than a CPA or tax attorney:
- IRS Enrolled Agents have to understand both the complexity of the tax code today, how it is applied for you and how constant changes would affect the tax liability that you have.
- Along with the stringent testing to qualify as an EA initially, IRS Enrolled Agents have to be a part of an extensive ongoing training every year, making them the most suitable expert you can use.
- EAs have to follow all the ethical standards and provisions of the Department of Treasury’s Circular 230.
- Due to the high EA requirements, there are just a few people (less than 50,000) in the US who are legally verified as EAs in the entire country. In short, you can trust an EA with your tax filings.
Tax services with IncParadise
Now that you are clear with what an EA is and why are they important, let us move ahead. There are a few tax services that every entrepreneur needs. And for this, IncParadise has connected with an IRS Enrolled agent to help you along with tax services of your company. So IncParadise will start to offer the following tax services:
Corporate Tax Service
The very first service that we offer is the service of helping you in corporate tax filings for your company. Corporate tax is the tax applied to the profit that a company earns. This tax is filed using the form 1120 for a US corporation. And it has to be filed before the 15th of March every year.
In short, there are a lot of legal formalities of corporate taxes that has to be done properly, which means that you may need help with filing these when tax time comes. So, the best way to have your corporate tax filing done accurately and on time is by taking the help of an Enrolled agent who offers tax services. IncParadise can help you with it due to the extended cooperation with an IRS registered EA.
Individual Tax Service
Another one of the tax services that our EA offers is individual tax services. Being a citizen or a working professional comes with a lot of obligations that you need to follow strictly. One of the main obligations is to file and pay taxes on earnings as an individual.
Filing an individual tax return can be tricky, especially if you own a company, are self-employed or are a shareholder of a company. Again, the best help you can get is from an EA. Being an IRS authorized enrolled agent, you can be sure to get the best services and tax advice from them.
From completing the forms like Form 1040, to helping you with the right deductions for your tax return, an EA would assist to get the lowest taxes payable to the IRS.
Tax form filing Service
Other than the individual tax filing, an EA can also help with other tax filings like the taxes for stock options, employee benefits, capital gains, and other exemptions for any stock rewards you may be getting from your employment.
All these tax forms and tax laws are related to the issuance of shares in a company. And your company may at some point raise capital or offer equity compensation. With this you would need help to stay both compliant to the rules and in filing the tax forms related to your case. To keep a note of everything to stay compliant with the equity rules, Eqvista is a great application to use. It is both FREE and highly effective for staying on top of your cap table needs.
Tax advice Service
Not only does a person need to file for tax returns in a year, there are many situations where people need tax advice every now and then. In such a situation, you cannot always go looking for a tax lawyer or a CPA who would not only charge you on a high rate, but might also not be able to guide you in the right direction for every situation.
The situation can be anything from a tax audit to a retirement plan. It can also be tax advice on equity compensation or if you are planning to make your company public. In any of these situations, the best help you can get is from an Enrolled agent. The good news is that IncParadise brings you just that. All you need to do is pick up your phone, and contact us today!
From all mentioned above, it is obvious that an EA has expertise in the field of taxation and tax procedures. Yet, most professionals tend to hire CPAs for tax advice. One reason for this is that these people are not aware of the existence of the enrolled agent and what they do.
From reading this article, you know what these professionals do, and they are the only federally authorized tax professionals by the IRS. So, be wise, and get tax advice from a professional like an EA. IncParadise can help you with it. Contact us to know more!