DeHoek & Company is proud to announce Jonathan DeHoek is a licensed Enrolled Agent (EA).
Having completed his exams earlier this year, Jon received his EA certificate this summer and we could not be happier for him, Congratulations Jon!
Jon’s responsibilities include business, individual and non-profit tax return preparation, auditing, and bookkeeping. He joined our team in 2014, earned his Bachelor’s degree from GVSU in 2016, and his EA in 2018.
Earning his EA license proves dedication and a commitment to providing the most knowledgeable service possible for his clients and allows him to represent taxpayers before the IRS. Eager to do more, Jon is also working toward his CPA designation.
WHAT IS AN ENROLLED AGENT?
An enrolled agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels—examination, collection, and appeals—of the Internal Revenue Service. In addition to taxpayer representation, enrolled agents often provide tax consultation services and prepare a wide range of federal and state tax returns.
For more detail on how enrolled agents are regulated, Circular 230 provides the rules of practice for enrolled agents, certified public accountants, and tax attorneys. The Return Preparer Office (RPO) provides oversight to the enrolled agent profession, including the testing and renewal of enrolled agents.
ENROLLED AGENTS (EAS) ARE AMERICA’S TAX EXPERTS
Enrolled Agents (EAs) are federally-licensed tax practitioners who may represent taxpayers before the IRS when it comes to collections, audits, and appeals. EAs are granted unlimited practice rights to represent taxpayers before IRS and are authorized to advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. Enrolled agents are the only federally-licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS.
Like a CPA, an EA has to pass a set of exams and do CPE to maintain their license. However, there are three main differences:
- The EA exam is 100% taxes. The EA Exam is the Special Enrollment Exam Part 1 deals with individuals, Part 2 with businesses, and Part 3 with rules and regulations.
- EA CPE must be tax-related (with the exception of 2 hours a year in ethics.) 72 hours every 3 years, which works out to 24 hours a year.
- EAs aren’t required to know GAAP. Many do, anyway, because the obvious synergy between bookkeeping and taxes is really hard to ignore.
EA vs CPA:
The credential of the accountant doesn’t necessarily matter, but it’s a good shorthand for their experience/education/background/training.
EAs are considered tax specialists. They have a vast knowledge of anything that pertains to income tax, inheritance tax, gift tax, estate, payroll, retirement, and non-profit taxation.
Certified Public Accountant
CPAs have a broad range of knowledge on all topics related to accounting, including auditing, taxes, business law, finance and more.
To become a CPA you must first complete the education requirements of the state in which you plan to practice. After you have met the prerequisite education requirements, you can sit for the CPA exam in that state. The CPA exam is a standardized test that consists of 4 different sections: Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, and Regulation. CPAs are licensed at the state level and can only practice in that state. This is one of the biggest differences between CPA’s and enrolled agents, who are licensed on a federal level.
CPAs can also help with monthly and yearly business accounting services, and with paying quarterly taxes. If you are audited, you can rely on your CPA to represent you and your interests. The more you have going on in your life, the more flexibility you have in the interpretation of the tax code to your situation, which is when a CPA can most benefit you.
The big advantage that you get by using a CPA or EA to do your tax return is that the same team that handles the preparation of the return can represent you if you are audited. This can be a big advantage if your return is at all complicated. We are both proud of Jon for his accomplishment and proud to offer both CPA and EA level professionals to serve our clients at DeHoek & Company.