Marisa Barto, EA

IRS Enrolled Agent 

Enrolled Agents, or EAs, are the only tax professionals authorized under the Internal Revenue Service to represent clients. Unlike certified public accountants (CPAs) or attorneys, EAs always specialize in taxation. EAs can also practice anywhere in the United States because they are under federal jurisdiction rather than state-level.

An EA can represent you before the IRS on any tax matter, including an audit or collection action on any tax return. In contrast, other tax preparers can provide representation for audits of returns they themselves prepared. For this reason, it's common for tax firms to use a disclaimer such as "we can not act as your legal representative".

Enrolled Agents must pass a two-day examination held annually by the IRS (of which less than one-third of participants typically succeed) and must receive at least 24 hours each year of continuing education credits to maintain their status. The exam covers a more varied array of topics than many state exams and tests individual and business tax knowledge and rules about representing clients before the IRS. 

Interesting fact: I passed the exam on my first try! Does this mean I read every page of the current federal tax code? No, admittedly not, but I have read the pages that apply to most of my clients and have researched extensively every word of the regulations that tend to be violated the most often.

Oregon License Tax Consultant

Only four states — New York, California, Maryland, and Oregon — have testing requirements for tax preparers. Oregon is the only state that requires licensing, and its qualification process is the most stringent. The other 46 states have no rules for independent tax preparers. Practically anyone can prepare your federal tax return and charge a fee. They may not be required to meet any competency requirements or hold any licenses or certifications as a tax professional, which I find scary! That means it's almost impossible for the majority of Americans to know beforehand how much of the current IRC's 74,608 pages totaling over 10 million words their local tax preparer knows.

Oregon requires a two-step process to license its tax practitioners. First, you have to pass the Oregon Licensed Tax Preparer requirements:

    • Obtain a high school degree.

    • Complete 80 hours of classes and pass a 5-hour exam on state and federal tax law.

    • Oregon further requires an apprenticeship — new preparers may not work alone in an office their first year and can only provide tax advice or prepare returns while supervised by a licensed tax consultant, attorney, or CPA.

Then, you have to pass the Oregon Licensed Tax Consultant requirements. Preparers can only sit for this test following at least 1,000 hours over two tax seasons under another Licensed Tax Consultant (LTC).

    "The test is much more difficult than the one for preparers and remains closed book. The level of clarity that must be understood is much higher. The specificity of the questions is so much more precise."

The pass rate, as a result? 30 percent.

Determining the right strategy to prevent or solve tax problems depends on having in-depth knowledge of tax laws and their implications, so I spend a lot of time and money attending training and conferences to keep up with the latest thinking about tax rulings that impact my clients. I am very proud of my tax licenses and certifications because they signify critical knowledge that is the foundation of my services.

I was really interested in money as a kid. Spending it was the best part and my wish list was always ready. I wasn’t just a lemonade-stand kind of kid. I wanted to understand how money worked. My dad was always talking about making money work for you which sounded a lot more fun than trying to afford my wish list on babysitting money! Although I didn’t understand how investments, taxes, or insurance worked — or what powerful tools they could be — I knew they were critical to have real money.

Early in my finance career, I was a teller at Bank of America's main branch in San Francisco. We served the multi-layered population of the city: wealthy elites, professionals, civil service employees, blue-collar workers, artists, welfare recipients, and the homeless. Instead of keeping a professional distance, I spoke personally with each member to get them exactly what they came to the bank for. I believe every person deserves that candidness. Our conversations were always interesting, with customers waiting in my line even when other windows were open. I was quickly promoted to train other tellers.

A local family real estate investment and remodeling business desperately needed help with accounting and someone willing to take on big, messy jobs. I learned that keeping track of costs for remodeling multiple houses across nine different business entities was way over my head. Unfortunately, it was also beyond the abilities of their tax advisors and the bookkeepers they sent to help. After trying several other self-proclaimed experts, we found someone who deeply understood accounting and bookkeeping for our type of business operation.

Again I climbed a steep learning curve as I learned to use QuickBooks to keep all the accounts straight. I developed a sense of humor, to say the least! I received my Mortgage Broker license to process loan requests. Looking from both the points of view of the borrower and lender, I was up to my eyeballs in the complex requirements for financial transactions.

I discovered that most small businesses do not like thinking about taxes, have difficulty finding someone who can explain their tax situation, and therefore give little thought to proactive tax planning. Finding it a fascinating challenge, I joined the tax industry! I am proud that I was licensed in Oregon because it is the only state that requires a tax professional who is not already a CPA to have a license.

In a determined pursuit to become more proficient and educated, I received my Enrolled Agent license from the IRS — I even passed the test on my first try!

I am very passionate about understanding the ins and outs of tax law and practice. I had the incredible opportunity to work for an incredibly talented agent at a small tax office in Gladstone. Under her guidance, I learned more than I could have imagined and had the pleasure of interacting with many different people, businesses, and situations.