Questions to ask an Enrolled Agent
The selection of an EA normally is a long-term and trusted relationship. Accordingly
you should determine your needs and desires, immediate and narrow, and longer-term
and broader and make as assessment of your own particular circumstances, quirks
and preferences. You should consider several candidates, using several methods such
as (a) referrals from close friends or associates (b) the individuals listed in
the Qualified Kingdom Advisors's member list (c) interviews with these candidates asking some
or all of the following questions:
Have you helped a client in a similar situation? It saves time
to work with an EA who has already dealt with similar situations. Probe to discover
exactly how he/she has dealt with problems similar to yours.
What are the nature, scope, and timing in completing the proposed assignment?
What will the fees be? Often, an EA's work plan can be more extensive
and more expensive than you might expect. Get the EA to be specific about what he
or she will do and get an engagement letter to document the work to be done and
the fee estimate.
Will my company and/or I be serviced by you, a partner or by junior accountants?
Many EA's train new associates at the client's expense. Be sure you get
what you pay for.
What is your opinion of filing bankruptcy; using offshore trusts, or aggressive
tax-shelters? This will help determine the EA's personal philosophy
of practice. Does the advice come from a biblical or secular worldview?
Can you tell me a little about your practices, and your successes and failures?
Open-ended questions can elicit a wealth of information. Let the EA talk.
You will also learn a lot about the EA's priorities, risk-tolerance levels, and
various personality characteristics, all of which can be helpful in gauging compatibility.
How are your fees calculated? Will you be charging me for every phone conversation
and/or meeting?
What can I do to help you with your work and keep your fees to a minimum?
Preparing information beforehand can save a great deal of your accountant's time.
Find out if your EA is willing to work with you to offload this work to you or someone
at your business.
How will you be communicating the results of your work to me? The
results of an audit usually take the form of an audit report, and tax return preparation
yields tax returns. But this work also can lead (and should lead) to many suggestions
by the EA on how to cut taxes, increase income, restructure investments, build business,
and improve information and stewardship of your resources. Some EA's are more comfortable
with interactive discussions and others prefer written action reports. Determine
which method you are most comfortable in receiving.
Do you perceive any conflicts of interests? EA's work for dozens
of firms and scores and sometimes hundreds of individuals. You should inquire if
the firm represents any of your direct competition. If so, inquire as to how this
conflict is handled.
How long have you been an Enrolled
Agent, and what other licenses do you hold?
You should inquire with the state organization to discover if there have
been any disciplinary actions entered.
How well have you integrated computers and the Internet into your practice,
and has it enabled you to do more for clients at less cost? Integrating
your computer files with those of your EA's files can save time and money, and increase
accuracy. Doing so over the Internet makes it even simpler. Find out how your EA
uses the Internet.
Are you conservative or aggressive in interpreting tax laws and regulations,
and accounting and auditing standards? Save yourself the hassle and
be certain that your EA approaches your books in the same way you would.
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