July 19, 2023

The Power of an Enrolled Agent as Your Financial Advisor

woman and a man looking at a piece of paper

Selecting a qualified and knowledgeable professional is crucial for making informed financial decisions. However, not all money managers are created equal. In this article, Wealth Advisor and newly minted enrolled agent Amanda Otto shares what an EA is and how this advisor provides valuable insights on tax-efficient investment strategies, retirement planning, estate planning and more.

When it comes to managing finances, seeking professional guidance can be an important step. However, not all financial planners are created equal. It is crucial to consider the credentials and qualifications of the individual you ultimately decide to guide you on your financial journey. One certification that holds significant value in the realm of tax and financial planning is that of an enrolled agent (EA).

What is an enrolled agent?

An enrolled agent is a professional who has earned the privilege of representing taxpayers before the Internal Revenue Service (IRS) in matters concerning tax issues. Unlike other financial professionals, enrolled agents focus primarily on taxation matters, making them knowledgeable in the complexities of the tax code. To become an EA, individuals must pass a rigorous three-part exam covering individual and business taxation as well as ethical standards. In addition to the assessment, EA professionals are subject to annual continuing education requirements overseen by the IRS.

Why choose an enrolled agent as your financial planner?

  1. In-depth tax knowledge:

Tax laws are intricate and ever-changing, posing a challenge for individuals seeking to navigate the complex world of taxes. Enrolled agents possess comprehensive knowledge in tax planning, preparation and compliance. With their in-depth understanding of tax codes and regulations, EAs can help you maximize deductions, minimize tax liabilities and ensure full compliance with IRS requirements. By having an EA as your financial planner, you gain access to a wealth of tax-specific knowledge that can significantly impact your financial decisions.

2. Year-round support:

While many individuals only think about taxes during the annual filing season, tax planning is a year-round endeavor. Enrolled agents can provide continuous support and guidance, helping you make informed financial decisions that have annual tax implications. By working with an EA as your financial planner, you'll have a partner who can offer valuable insights on tax-efficient investment strategies, retirement planning, estate planning and more. Their proactive approach to tax planning ensures that you are well prepared for tax obligations and can take advantage of any available tax-saving opportunities.

3. Professional ethics and standards:

Enrolled agents are held to a high standard of ethical conduct, as established by the IRS. They are bound by the Treasury Department's Circular 230, which outlines guidelines for professional practice and prohibits them from engaging in unethical or fraudulent activities. By working with an EA, you can have confidence in the integrity and professionalism of your financial planner. This commitment to ethical conduct ensures that your best interests are always at the forefront and that you receive advice that is both sound and trustworthy.

4. Versatile and comprehensive financial knowledge:

Although enrolled agents provide clients with year-round tax planning, their experience extends beyond taxation. Many EAs possess broad financial knowledge and can provide holistic financial planning services. They can assist with retirement planning, investment strategies, risk management and other aspects of financial well-being. This versatility allows you to benefit from a comprehensive approach to your wealth goals, integrating tax considerations into all aspects of your financial plan. To learn more about this specialized designation, visit the IRS website. If you have any questions, please contact your financial planner. If you are not currently working with one, we would love to help you. Please schedule a short phone call or virtual conversation with our Client Development team.

For informational and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Certain information is based on third party data and deemed to be reliable, but its accuracy and completeness cannot be guaranteed. Third party information may become outdated or otherwise superseded without notice. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this article.

About the Author

Amanda Otto

Wealth Advisor

Amanda Otto is passionate about serving as a fiduciary for clients – doing only what’s in their best interest – so they have clarity and confidence in their financial lives. She enjoys learning about their hopes and dreams and then building a customized plan to help them realize those aspirations.

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