The Enrolled Agent Credential: Why It Matters When Hiring an Advisor for Tax Planning
Many financial advisors do not hold tax credentials, which can leave planning and tax filing in separate hands. Todd Stankiewicz, an Enrolled Agent and CFP® professional at SYKON Capital, explains what the EA credential is and why combining tax knowledge with financial planning may be valuable in some situations.
An Enrolled Agent is a federally licensed tax professional, credentialed by the IRS after passing a comprehensive three-part examination covering individual taxation, business taxation, and representation. It is the highest tax credential the IRS issues, and it gives Enrolled Agents unlimited practice rights before the IRS, including the ability to represent clients in audits, appeals, and collections at every level.1
Many financial advisors, including some CFP® professionals, do not hold tax credentials. They may discuss tax strategy in general terms, but they often rely on a separate CPA or tax preparer to prepare returns and handle issues that require deeper tax-code analysis. That division of responsibilities can create planning gaps, especially when tax issues are not reviewed until after year-end.
Holding both the CFP® and EA credentials allows me to connect investment decisions, income events, and financial planning discussions more directly to the tax return. When a client has a liquidity event, takes a distribution, or exercises stock options, I can review the tax impact in real time and help evaluate possible adjustments before year-end.
For high-income earners, that kind of integration can be useful. The difference between proactive tax planning and reactive tax filing can be meaningful, depending on the complexity of the situation. Some clients may benefit from having financial planning and tax analysis more closely coordinated rather than handled in separate silos.
About Author
Todd Stankiewicz | Chief Investment Officer, SYKON Capital
Todd Stankiewicz is the Chief Investment Officer of SYKON Capital, a fee-based registered investment advisor with offices in Westchester County, NY and Jupiter, FL. He is a recurring guest on Fox Business and the Schwab Network, where he discusses markets, portfolio strategy, and investor behavior. Todd is also the portfolio manager of the Free Markets ETF (FMKT).
Learn more at www.sykoncapital.com
Investment advisory services offered through SYKON Capital, LLC, a Registered Investment Advisor with the U.S. Securities and Exchange Commission.
This material is intended for informational purposes only. It should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor. This information is not an offer or a solicitation to buy or sell securities. The information contained may have been compiled from third party sources and is believed to be reliable. Please note that contacting us does not establish a client-advisor relationship, and we may receive compensation for advisory services. Personalized advice should be obtained before making financial decisions. Our advice is based on our experience and relationships in both markets. Investment advisory services are offered through SYKON Capital, LLC, a Registered Investment Advisor. Contact us for personalized advice.'
