how to become an enrolled agent

With the EA title, you can offer a wide range of services beyond tax preparation since you are seen as the pinnacle for the tax profession. Pass a suitability check, which will include tax compliance to ensure that you have filed all necessary tax returns and there are no outstanding tax liabilities; and criminal background. Successful examination candidates usually have the process completed within 90 days of receipt of their application. Yes, there is a shortage of enrolled agents that can handle complicated tax returns and have the ability to represent clients before the IRS.

how to become an enrolled agent

This online certificate program leading to the professional CTP® designation includes five courses totaling 157-hours of instruction. The courses teach you tax preparation from the very beginning and can be completed in just 18 months or less. While getting a CPA is very respected in accounting, it can take many years to become a CPA. If you become an Enrolled Agent instead, you can represent taxpayers in front of the IRS. You can also specialize in other areas of taxation to help your clients. Across the entire nation, there are only about 53,700 enrolled agents according to the NAEA. In contrast, CPAs and tax preparers “who lack the enrolled agent credential greatly” outnumber enrolled agents.


Yet, individual states grant the CPA, while the federal government grants the EA. Therefore, EAs and their tax expertise are acknowledged at a national level. EAs are known across the country as top-notch tax preparers. And, they can advise clients in matters that involve multiple states. Adaptive sequencing is the ability to continuously collect real-time data on performance and use it to automatically change a students learning experience.

  • The EA designation is the highest credential issued by the IRS .
  • For example, their old mare may have suddenly transformed into a thoroughbred stud with a high market value.
  • At this time, numerous U.S. citizens had government claims regarding property confiscated during the war.
  • Specifically, those with this certification, similar to a certified public accountant, can represent taxpayers before the Internal Revenus Service.
  • With it, you’re likely to have more job opportunities.

You can start with a tax professional certificate program. After completing a basic tax program, you can go on to a more advanced program to prepare you better. Becoming a tax professional is a big step to take if you want to become an enrolled agent. EA candidates have to pass a background check, which is conducted by the IRS. This will include looking into your personal tax history. Ethics are a big deal for EAs, so you need to have proof of ethical tax history.

Cpa Vs Ea: Estimated Costs

Even if you are not in a rural area, you might find small-scale farms in urban or suburban areas. These farmers will need help with their tax issues and being versed in this area will provide another level of job security.

how to become an enrolled agent

Subsequently the candidate passed Part 2 on September 1, 2020. That candidate has until June 1, 2023 to pass the remaining part. The candidate has until September 1, 2023 to pass all other parts of the examination or will lose credit for Part 2. The Enrolled Agent credential is nationally recognized, as they are federally authorized by the IRS to practice in any state. Interestingly, CPAs have to be licensed separately in each state they wish to practice in. Please allow 60 days for processing ( days if you are a former IRS employee).

Steps To Become An Enrolled Agent

If you live outside of the U.S., international testing is available for the EA exam. The IRS has a list of Enrolled Agent exam international testing dates and locations Opens in new window on their website.

how to become an enrolled agent

To enroll by mail, print and fill out Form 23Opens in new window and mail it with a check to the IRS. Review and confirm your personal information and appointment details. Choose a date and time that works for you from the list of available locations and appointments. If you don’t have a Social Security number, you must fill out and mail Form W-12 Opens in new window. This option is available to everyone who wants to utilize it. Personal informationFor example, your name, mailing address, date of birth, etc.

They schedule times for the EA exam between May and February. If you do not pass one part of the test, you must wait to schedule a re-take until the next testing period begins.

You might use one of those or attend appropriate courses at your local accredited college or university. Professional organizations or associations may also be recognized as valid CPE providers. To ensure that your credits will count towards your CPE hours, look for the IRS Approved Continuing Education Provider logo. All EAs will be tested on this area of taxation during the licensing process.

Understand The Exam Structure And Specification

This type of career will be necessary no matter the state of the economy. Taxes still have to be paid; CPAs don’t always offer the same services. And enrolled agents will still be necessary, even if there is a recession.

  • As you think about when and how you’ll prepare for the exam, you should also know about the defined testing window.
  • In either tool, you can review your answers, whether correct or incorrect, and review the rationale.
  • For the most part, these are 501 organizations, commonly known as nonprofit organizations.
  • Although CPAs may have a greater earning potential, that salary comes with the need to spend longer in school, gain more work experience, and take a much more in-depth exam.
  • A passing score on each part of the SEE exam is required before the IRS will admit an enrolled agent to practice.

After all, while it is important to be in compliance with the IRS, it’s also important to fulfill on any contractual agreements you have with your client. Not only are you required to submit any lawfully requested documentation, but you must also be available to testify before the IRS. You can easily work year-round assisting clients how to become an enrolled agent with tax preparation and many other different tax issues. Candidates who pass a part of the examination can carry over passing scores up to three years from the date the candidate passed the examination. For example, assume a candidate passed Part 1 on November 15, 2020. Subsequently the candidate passed Part 2 on February 15, 2021.

As a result, EAs must possess excellent communication skills. Additionally, enrolled agents must possess a thorough understanding of IRS documentation, as the documentation must be filed with the IRS.

Will I Still Be Able To Represent Clients Before The Irs If I Dont Participate In The Annual Filing Season Program?

Personalize the pace and direction of your EA exam preparation with Gleim’s review materials. This course includes digital books, test bank of questions and a realistic practice environment.

In order for other tax preparers to prove they follow regulation, they need to take the IRS Annual Federal Tax Refresher Course.EAs don’t have to! The exam is administered by the testing company Prometric at testing centers throughout the United States and many other countries around the world. PassKey Learning Systems provides a complete study program to help you learn and understand the key concepts you need to know to pass the EA exam. Severe penalties may be imposed for contributions and distributions not made in accordance with IRS rules. An IRS enrolled agent typically represents a client during IRS hearings or when dealing with legal tax matters.

How Do I Prep For The Exam?

With it, you’re likely to have more job opportunities. Technically, CPAs also have more opportunities to increase their earning and bonus potential over time. Congress enacts a “temporary” income tax with the passage of the Revenue Act of 1862 in order to fund the Civil War. Enrolled Agents are exempt from many of the state fees, registration and testing requirements imposed on Tax Return Preparers. “How do I put urgency into my EA studies”, you ask?

  • The agents sought to inflate the losses since they were paid on a percentage, or commission, basis.
  • This course is not open to any persons who are currently employed by or seeking employment with any professional tax preparation company or organization other than H&R Block.
  • “Agent” means a person authorized to appear in the place of the taxpayer before the Internal Revenue Service .
  • EA Examinations are administered by computer at Prometric testing centers.
  • There is a $35.95 fee to obtain or renew your PTIN.

Enrolled Agents can also start their own tax business. The opportunities for tax preparers become more varied with Enrolled Agent status, and candidates will find that career doors open up with the certification. Scaled scores are determined by calculating the number of questions answered correctly and converting it to a scale that ranges from 40 to 130. The IRS has set the scaled passing score at 105.

Therefore, enrolled agents are federally-licensed tax practitioners who possess technical expertise in taxation. They have the express privilege to represent taxpayers before the IRS in matters relating to examinations, collections, audits, and appeals. EAs represent a wide range of clients including individuals, corporations, estates, partnerships, trusts, and more. An Enrolled Agent represents taxpayers before the Internal Revenue Service . Both certified public accountants and enrolled agents must adhere to strict ethical standards. Among the differences between these two careers is that certified public accountants are regulated at the state level.

Pass The Special Enrollment Exam Ea Exam

See Online and Mobile Banking Agreement for details. For a full schedule of Emerald Card fees, see your Cardholder Agreement. One personal state program and unlimited business state program downloads are included with the purchase of this software. Most state programs available in January; release dates vary by state. Learn how to afford college without your parents help with five useful strategies from H&R Block. In addition to the franchise office roles listed above, there are countless opportunities within our Corporate team. View current career opportunities in our H&R Block Career Gateway.

What Is The Enrolled Agent Exam?

However, the IRS doesn’t score all these questions. The other 15 MCQs are considered experimental and not counted in your score. To clarify, many CPAs choose not to pursue taxation work because of the nature of the job or their lack of experience in the tax realm. Further , CPAs typically charge more for their tax services. An EA does not handle criminal matters or represent clients in tax court unless the EA also happens to be an attorney. Below are some time-tested tips you can leverage to increase your chances of passing all three of your Special Enrollment Exams (SEE’s) the first time.

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