About Jupiter Tax Prep
I began Jupiter Tax Prep because I was thinking up businesses to start and it jumped out at me. I have been doing my own taxes for over 10 years. I spent a number of years working at a corporate tax firm preparing and filing over 3,000 tax returns each month. Strangely enough I enjoyed working in taxes. I enjoyed the numbers, and diving into the idiosyncrasies of each tax jurisdiction.
Corporate Tax Firm
I worked for a corporate tax firm where my primary focus and area of expertise was in sales and use tax. My clients were fortune 500 companies in a wide variety of business types. The type of goods or services they sold affected their tax liability. For example in Arkansas there is a different tax rate for soft drinks. In some states I had to file a different tax return for each county, in other states I filed only 1 return for all local stores, and some states I filed a return for each store location. To say it was complex was an understatement. But I like it, I understand the language of taxes.
What does it mean to be an Enrolled Agent? Enrolled agents (EAs) are America’s Tax Experts. EAs are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS. This is a national license through the Department of Treasury.
Enrolled agents advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. Enrolled agents’ expertise in the continually changing field of taxation enables them to effectively represent taxpayers at all administrative levels within the IRS.
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. NAEA members are held to a higher standard, they 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.
The Difference Between EAs and Other Tax Preparers like CPAs and Tax Attorneys?
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.