Sean Reed had been considering taking the tests to become an enrolled agent (EA) for some time but hadn’t pulled the trigger to do it.
But this past summer, Reed who works at his family’s business Reed’s Tax Service located at 2231 S. Air Depot Blvd. in Midwest City, decided the timing was right to pursue it. He recently passed his exams and is now an EA.
EAs are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS.
"I didn’t know what they were until about three years ago," Reed said. "I had an IRS agent in here and she asked if I was an enrolled agent. She advised me to become one."
Reed said there were three tests to prepare for and he began studying in late summer.
"I was basically studying two to four hours a day six days per week from the end of July until I took my final exam Nov. 15," Reed said.
Reed said he was excited to learn that his hard work had paid off after passing the exams.
"I was on cloud nine for the entire weekend and probably still am," Reed said.
The enrolled agent profession dates back to 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings with the U.S. Treasury Department.
The license is earned in one of two ways, by passing a comprehensive examination which covers all aspects of the tax code, or having worked at the IRS for five years in a position which regularly interpreted and applied the tax code and its regulations. All candidates are subjected to a rigorous background check conducted by the IRS.
Enrolled agents advise, represent and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements.
In addition to the stringent testing and application process, the IRS requires enrolled agents to complete 72 hours of continuing education, reported every three years, to maintain their enrolled agent status.
Reed said he plans to become a member of the National Association of Enrolled Agents, which requires additional continuing education.
NAEA members are obligated to complete 30 hours per year for a total of 90 hours per three year period. Because of the expertise necessary to become an enrolled agent and the requirements to maintain the license, there are only about 46,000 practicing enrolled agents in the nation.
Only enrolled agents are required to demonstrate to the IRS their competence in all areas of taxation, representation and ethics before they are given unlimited representation rights before IRS. Unlike attorneys and CPAs, who are state licensed and who may or may not choose to specialize in taxes, all enrolled agents specialize in taxation. Registered tax return preparers have passed a minimal competence test on tax forms for individuals and have only limited representation rights.
Reed said his grandfather Marion Reed started the family business and was followed by his father Eddie, who still works at Reed’s Tax Service.
Reed started working in the family business when he was 14 and initially didn’t think he wanted to become the next generation to join. He opted instead to work in the finance industry before being asked to join the family firm.
"I wanted to make my own mark," Reed said. "My parents talked to me about coming into the tax business. It was the right time. It just felt right."
For more information about Reed’s Tax Service, call (405) 732-2446.
