What Services Can an Enrolled Agent Provide?
- Timalyn S. Bowens
- 13 minutes ago
- 8 min read
An Enrolled Agent is a tax professional who has earned the highest credential the IRS awards to a tax professional. But when it comes to the services they offer, what makes them different? The authority to represent taxpayers before the IRS. It sounds good, but it doesn't mean much if you don't understand what that authority is.
Are you stuck with not fully understanding the authority you have to help taxpayers? Maybe you aren't sure how being an Enrolled Agent should translate to your service offerings. I am going to explain what tax representation is and some services that you can offer taxpayers who need your expertise.
Note: The services I am reviewing today are some that fall under tax representation. You can also offer tax preparation, bookkeeping, CFO, and payroll services. You are not limited to only offering tax representation services. Just keep in mind that the EA credential doesn't set you apart as being an expert in offering those services.
What is Tax Representation?
Tax representation is more than just numbers on a tax form; that's tax resolution. Tax representation is standing in the gap between the IRS and the taxpayer to protect the taxpayer's rights.
The taxpayer selects you as their tax representative by signing Form, 2848, Power of Attorney and Declaration of Representative. This form gives you the authority, under Circular 230, to represent the taxpayer. Stay tuned for an article and mini class walking you through the process.
What Services Can an Enrolled Agent Offer in Their Firm?
Audits, levies, liens, and asset seizures...oh my. These are just some of the things that areas where you can protect your client. The foundation of any representation engagement is a transcript investigation. Let's take a look at what that is.
What is Transcript Investigation?
Before you can effectively represent a taxpayer, you have to understand what is going on with their account. That is why you must do a transcript investigation first. In my firm, Bowens Tax Solutions, this includes:
Pulling the taxpayer's account transcripts for the past 10 years
Requesting the record of account transcripts for the past 3 years
Completing a compliance check
Requesting more time to create an arrangement if the client is being faced with the threat of a lien or levy
Analyzing the transcripts
Creating a report that shows the breakdown of debt by initial tax assessed, penalties, and interest.
You can pull transcripts online if you have a 2848 on file with the IRS CAF unit. If not, you'll need to call the IRS to request these. For transcripts, you can call the practitioner line. To request more time, you will need to call ACS. If the IRS has assigned the case to a Revenue Officer, you will have to call them directly to request more time.
Once you have your analysis done, you can set up a meeting with the taxpayer to let them know:
Where they stand with the IRS, and what's missing
The penalties you can potentially have removed from the account
What are your recommendations for next steps
If you aren't familiar with conducting a compliance check with the IRS, I will walk you through the process in How to Conduct a Transcript Investigation.
What is IRS Audit Representation?
When a taxpayer is facing an audit you will not only want to get the transcripts. You will also want to make an introduction of yourself to the auditor in charge as soon as possible. Your job in this situation is to provide them with the documentation that they are requesting, nothing more, nothing less, as soon as you can.
But the IRS does not do all audits in person. The IRS conducts some audits via correspondence. Simply put an audit is when the IRS finds a discrepancy between the tax return and third party documentation. Or the tax return isn't falling in line with the sample returns that the IRS has pulled of the same type.
In this situation the IRS can propose a change to the tax return. This usually results in the IRS assessing additional tax and sometimes an accuracy related penalty.
Your job as an Enrolled Agent is to keep this from happening. You want to protect the taxpayer's rights and have the result end in no change. The IRS can make this a long drawn out process. But with your guidance the taxpayer won't give the IRS an opening to go down any unneccesary worm holes.
Lien Removal
A tax lien is when the IRS calls dibs on the taxpayer's assets. There is the silent lien that allows the IRS to issue a levy later. Then there is the lien that the IRS files with the county clerk's office.
This can not only be embarrassing to the taxpayer but also prevent them making progress financially. For example, selling a home. As an Enrolled Agent you have the authority to get the tax lien removed for the taxpayer or move it out of the way. There are times when the IRS will allow the another creditor to move ahead of them if it does not get in the way of them getting paid.
Tax liens are self-releasing. This means that after the collection statute expiration date connected to the lien it falls off. There will be times where you advocate on behalf of the taxpayer to have the lien removed because the time has expired.
You may work with the Centralized Lien operation if your client can pay the debt off in full. You can review the other ways to review an IRS tax lien in Effective Strategies to Remove an IRS Lien for Taxpayers.
Levy Removal
A tax levy is one of a taxpayer's biggest fears. Waking up and having the IRS clear out your bank account. A tax levy is when the IRS controls the taxpayer's cashflow by taking money out of their bank account. Levies are not limited to bank accounts.
The IRS can also levy Federal and state tax refunds, retirement accounts. The IRS can also garnish wages and other income, including social security income.
Note: Similar to a levy is an asset seizure. The intent to levy does give the IRS the permission to seize the taxpayer's assets to sell them and satisfy the debt. A property seizure is of tangible property. Some examples are a home or vehicle.
When representing a client who is facing a tax levy time is of the essences. If the levy hasn't taken place yet a payment arrangment needs to be set up as soon as possible. If the levy has already taken place you also need to ensure that you have a proposed payment arrangement in place.
Debt Negotiation
Everyone thinks they qualify for an offer in compromise, but they don't. It is your job as an Enrolled Agent to investigate whether or not the taxpayer does qualify for an offer.
If not then you'll let them know why and what their other options are. There ARE alternative payment options such as:
Currently Not Collectible Status (temporarily delay IRS collections)
I have linked each option above to a resource that goes into further detail about each option. Keep in mind that it is not the amount of debt that qualifies a taxpayer for the option. You need to understand their ability to pay.
If you have no idea where to start when looking at a client's financials check out How to Determine What Your Tax Representation Prospect Qualifies For.
Tax Account Monitoring
Problems with the IRS scare some taxpayers straight. They do everything by the book after that. Unfortunately some people are and will continue to be repeat offenders. When we set up a payment arrangement for our clients it is contingent on them being tax compliant.
If they owe the following tax year the arrangement will default. That means all of your work will go down the drain. A way to avoid this is by monitoring the taxpayer's account. I am not recommending that you do this for free.
You will charge a fee to routinely pull transcripts, update them on notices received etc. You are there to catch things before they become an issue and/or default current arrangements.
This service isn't just for taxpayers who don't stay on top of things. I have some clients who are expats and they have me monitor their account because they don't get their mail in the same time frame. This service has helped me prevent the IRS from issuing liens and levies on differnt client accounts.
Note: I hope you feel excited and motivated to revise your service offerings. But if you feel overwhelmed instead of motivated I am here to help you.
If you don't know how to analyze tax transcripts or create a report from your findings that is okay. You don't need a tax resolution software. You just need some guidance. I walk you through this process for an individual account and business account in the Back Tax Negotiation Workshop. I will also walk you through the paperwork for the following:
Streamlined Installment Agreement
Direct Debit Installment Agreement
Partial Pay Installment Agreement
Tiered Installment Agreement
Currently Not Collectible Status
You can get immediate access to the training by purchasing the recording in the Back Tax Negotiation Course.
I understand that some people learn better in person. If that's you then I want to invite you to join me October 23rd - October 25th for the Enrolled Agent Firm Bootcamp in Louisville, Ky. Not only will we be going over through the Back Tax Negotiation workshop, we will also be going over your workflows and marketing plan for 2026. Hope to see you there!
Now It's Your Turn
This is a limited, not all-inclusive list of the types of services that you can offer as an Enrolled Agent. But I hope it has helped you get a better idea of how you can advocate for taxpayers. Don't forget to do your homework in the comments or in How to Start an Enrolled Agent Firm. I am looking forward to seeing the direction you take your firm.
1 - After reading this article, which service(s) are you leaning toward and why?
2 - If you already have taxpayers in your book of business that need these services, what is keeping you from offering them? How can I support you so you have the confidence to handle the situation? Check out How to Price Your First Tax Representation Case for a sample price list.
3 - Take the leap! Sometimes the client comes before you know what you're doing. If that's the case, I am here to offer you support. Don't miss out on the opportunity to help taxpayers and learn because you are afraid. You will have to go through the process multiple times before you have it mastered. Just like lifting weights, it takes reps to build that muscle.
Here is your invitation to join the monthly mentorship today!
Timalyn S. Bowens, EA, is America's Favorite EA and Tax Expert who will work hard to find a customized legal solution for you! As an Enrolled Agent licensed through the Internal Revenue Service, Timalyn can fight the IRS for taxpayers in all 50 states. As the host of Tax Relief with Timalyn Bowens and a YouTube content creator, she empowers taxpayers to make educated decisions about their tax situation.
When you are facing questions regarding your personal or business taxes, working with a professional makes all the difference. At Bowens Tax Solutions, we serve our Louisville-area neighbors by providing the tax services and knowledge needed to succeed. We are here to assist you with your tax issues and preventative care. Visit our website at www.bowenstaxsolutions.com for more information.