Frequently Asked Questions

1. What is an Enrolled Agent (EA)?

An Enrolled Agent (EA) is a tax professional who is federally authorized by the U.S. Department of the Treasury to represent taxpayers before the Internal Revenue Service (IRS).

2. What can EAs do?

• Prepare tax returns for individuals, businesses, estates, trusts, and more.

• Represent taxpayers in matters involving the IRS, such as audits, collections, and appeals.

• Provide tax planning and consulting services.

3. Who controls Enrolled Agent Licenses?

• Enrolled Agents are regulated by the IRS, not by state licensing boards like CPAs.

• They must follow ethical standards outlined in Circular 230.

• They are required to complete 72 hours of continuing education every 3 years.

4. How is an EA different from a CPA or tax attorney?

• EAs specialize in taxation only and are licensed federally.

• CPAs are licensed at the state level and may work in areas beyond tax, such as auditing or accounting.

• Tax attorneys are lawyers who may handle legal tax matters, especially litigation.

EAs often offer a more tax-focused and affordable option for individuals and businesses.

5. Are EAs required to complete continuing education?

Yes. EAs must complete 72 hours of continuing education every 3 years to maintain their license, including ethics courses.

6. Can EAs represent clients in all states?

Yes. Because they are federally licensed, EAs can represent clients in any U.S. state or territory.

When someone legally changes their name, there are tax consequences they need to know about., especially at tax time.

People change their names for several reasons:

Taking their spouse’s last name after a marriage

Hyphenating their last name with their spouse’s after getting married

Going back to their former name after a divorce

Giving an adopted child the last name of their new family

The IRS wants people experiencing a name change to remember these important things:

Reporting change to SSA:

Taxpayers should notify the Social Security Administration of a name change ASAP. When a taxpayer files their taxes, the IRS checks SSA records to ensure names and social security numbers on the forms match.

Failing to report a name change:

If a name on a taxpayer’s tax return doesn’t match SSA records, it can delay the IRS processing of that return. In that case, if the taxpayer is due a refund, it will take longer for them to get their money.

Name Change Due to Adoption:

In the case of an adoption, if the child has a Social Security number, the taxpayer should be sure to inform the SSA of a name change. If the child does not have a Social Security number, the taxpayer may use an Adoption Taxpayer Identification Number on their tax return. An ATIN is a temporary number. Taxpayers can apply for an ATIN by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions. Taxpayers file this form with the IRS.

Getting a New SS Card:

After a name change, a taxpayer should file Form SS-5, Application for a Social Security Card. The form is available on SSA.gov or by calling 800-772-1213. The taxpayer’s new Social Security card will reflect the name change.

Source: https://www.irs.gov/newsroom/heres-how-a-name-change-affects-a-tax-return

Photo by local Pittsburgh Wedding Photographers: Evermark Studios

The IRS has requirements and rules on who you can claim as a dependent.

A “qualifying child” or “qualifying relative” can be claimed if they meet specific requirements related to residence, relationship to the tax payer, age, and personal income.

Dependents are usually, but not always, a child or other relative. Qualifying children and qualifying relatives have their own additional requirements, but all dependents must meet these requirements:

Dependents can have their own tax returns, and even be married, but they must not have filed a joint tax return for the year unless it’s just to claim a refund.They must be a U.S. citizen, U.S. national, or a resident alien.They must have a taxpayer identification number. That’s usually a Social Security Number, but if the child doesn’t qualify for one, it can be an Individual Taxpayer Identification Number (ITIN) or an Adoption Taxpayer Identification Number (ATIN).

Rules for Claiming Children

When you’re claiming a dependent who is a child, there are further requirements:

The child has to have lived with you for at least half of the year.

The child has to be related to you, whether that’s by birth or by marriage or adoption.

The child must be under 18 years of age, or 24 years of age if they are a student. To be a student, the child must have attended school full-time during at least five months of the year. The five months don’t have to be in a row.

The child must be younger than you (or your spouse, if married filing jointly), unless the child is disabled.

Rules for Claiming Other Relatives and Unrelated Persons

If you are seeking to claim a parent or other relative as a dependent, there are different additional requirements:

The person cannot have a gross yearly income over $4,000.

The person can’t be a qualifying child dependent of you or another person. That means you can’t claim the person if someone else could.

The person must be either related to you or must have lived with you all year as a member of your household.

If you use your car for business, charity, medical or moving purposes, you may be able to take a deduction based on the mileage used for that purpose.

The standard mileage rates for 2025 are:

• Self-employed and business: 70 cents/mile 
• Charities: 14 cents/mile 
• Medical: 21 cents/mile 
• Moving (military only): 21 cents/mile