What is the role of an Enrolled Agent or CPA before the IRS?

• A. They may prepare returns, provide tax advice, and represent taxpayers in examinations and collection matters when authorized.
• B. They decide tax law.
• C. They can issue penalties.
• D. They can prosecute taxpayers.

Answer: (A)

Before the IRS, an Enrolled Agent or CPA is there to help and advocate for the taxpayer in dealings with the agency. They may prepare tax returns and provide tax advice, and, once they are properly authorized to practice before the IRS, they can represent the taxpayer in IRS examinations (audits) and in collection matters, such as negotiations, liens, or payment arrangements. The key is that this representation requires formal authorization and ongoing good standing. They don’t set tax policy, issue penalties, or prosecute taxpayers; those actions are handled by the government agencies and the courts.