An Enrolled Agent (EA) is a tax professional who’s been authorised by the US federal government to represent taxpayers in front of the IRS. To earn this esteemed credential, you’ll need to pass the three-part Special Enrolment Examination (SEE), go through a background check, and submit your application for enrolment. If you’ve ever wondered what is an Enrolled Agent, just think of them as tax specialists with the authority to practice anywhere in the US.
- Building Your Credentials – After passing the SEE, it’s essential to continue building your credentials.
- With your expertise, you can offer specialized tax services that command premium fees.
- Your EA exam study schedule will help you to see when you should be done studying.
- You must also pass a background check and pay the initial enrollment fee.
- By focusing on each section individually, candidates can allocate their time and efforts effectively.
What is the process to obtain Enrolled Agent certification?
- Starting your tax practice as an Enrolled Agent offers a unique combination of independence, credibility, and financial rewards.
- Unlike many professional jobs, you don’t need a degree in a specific field of study—or a degree at all—so you can take the EA exam at any point.
- For professionals focused exclusively on tax matters, becoming an Enrolled Agent may be a faster and more focused path to gaining IRS representation rights than pursuing CPA licensure.
- Please meet these requirements to avoid suspending or revoking your EA certification.
“Enrolled” means to be licensed to practice by the federal government, and “Agent” means authorized to appear in the place of the taxpayer at the IRS. Only enrolled agents, attorneys, and CPAs have unlimited rights to represent taxpayers before the IRS. With the IRS continuing to update tax laws and regulations, businesses and individuals alike require tax professionals who are knowledgeable and capable of navigating complex tax codes. Becoming an Enrolled Agent allows the definitive guide to becoming an enrolled agent you to gain comprehensive expertise, positioning you as a trusted advisor in tax-related matters. Moreover, EAs have a competitive advantage over non-credentialed tax preparers, leading to greater career opportunities, increased earning potential, and enhanced job stability. Unlike other tax professionals who may have limited practice rights, enrolled agents can represent taxpayers in any state regarding federal tax matters.
How to Become an Enrolled Agent: Full Certification Process
Note that you will have to pay the $182 fee each time you take the exam. Once you complete your examination, you will be given a pass or fail designation on the computer you took the test on. The EA Exam, also known as the Special Enrollment Exam (SEE), is a three-part exam that is administered by Prometric. Hopeful candidates must pass each section of the EA test in order to be given the designation.
Do Enrolled Agents need to take continuing education?
Now that you’ve registered with Prometric, you must decide when and where you’d like to take the exam. However, you can only register for the exam and schedule your appointment on the same day if you use the online method. You will receive your results immediately after you complete the exam.
Representation Rights and Practice Before the IRS
If you want to go the tradional way of accounting you can also read about the steps, benefits, and career opportunities in our Bookkeeping Certification Guide. By hiring an enrolled agent, the taxpayer can have peace of mind knowing that their agent has the authority to represent them before the IRS. The enrolled agent can navigate the audit process, negotiate with the IRS on the taxpayer’s behalf, and ensure a fair resolution. On either route to the enrolled agent designation, you will need to complete a background check.
The IRS’s testing partner, Prometric4 offers testing centers that provide all candidates with a standard digital environment to take the EA Exam. You should arrive at the testing center 30 minutes early to present your identification and store your belongings in an assigned locker. You’ll then pass through a metal detector to enter the testing room and sit for the exam. If you think you’ve been scammed, consult this guide and use Form A to file your complaint with the IRS.
Your aspirations of understanding how to become an enrolled agent can be realized with the right guidance. Yet, state boards of accounting grant the CPA license, while the federal government grants the EA certification. For this reason, the tax expertise of enrolled agents is acknowledged at a national level. Valid receipt for 2016 tax preparation fees from a tax preparer other than H&R Block must be presented prior to completion of initial tax office interview.
The National Association of Enrolled Agents (NAEA) shares more information about the definition of enrolled agents. “Enrolled” means to be licensed to practice by the federal government. “Agent” means a person authorized to appear in the taxpayer’s place before the Internal Revenue Service (IRS). Comparing the pathways to becoming an Enrolled Agent (EA) versus a Certified Public Accountant (CPA) reveals distinct challenges and commitments inherent in each profession. Both roles demand a deep understanding of tax and accounting principles.
The U.S. Department of Treasury grants EAs unlimited representative rights before all administrative levels of the IRS. Of course, this privilege comes after you meet the EA requirements and pass the EA exam. You’re not allowed to bring any notes or study materials with you to the exam. Phones and electronic devices are also prohibited, even during breaks. Prometric provides a detailed list of testing center regulations5 that we recommend you review before exam day.
Professional Opportunities and Career Growth
As mentioned, only CPAs and attorneys enjoy the same rights before the IRS. Clearly, before you decide to become an EA, you must know more about the designation. For starters, let’s unpack the meaning of the term “enrolled agent.” In this case, “enrolled” means to be licensed to practice by the federal government. “Agent” means a person authorized to appear in the place of the taxpayer before the Internal Revenue Service (IRS). You must retake and pass any failed exam parts before applying for enrollment.
EAs are not only proficient in providing expert tax preparation services but also possess the specialized knowledge required to handle intricate tax issues effectively. The pathway on how to become an enrolled agent is meticulously designed to breed excellence in tax representation. Enrolled agents have a wide range of career opportunities available to them.They can work with individuals and companies in preparing tax returns. The EA certification offers higher earning potential, job security, and the opportunity to deepen tax preparation skills.
Becoming an Enrolled Agent isn’t just about crunching numbers and filling out tax forms—it’s more about becoming a trusted advisor to individuals and businesses alike. EAs play a vital role in representing taxpayers before the Internal Revenue Service (IRS), offering expert guidance on tax matters, and ensuring compliance with ever-changing tax laws. EAs have unrestricted practice rights, allowing them to advise or represent individuals, businesses, estates, trusts, and any entity with tax-reporting requirements. EAs often specialize in tax law and provide expert guidance on complex tax matters, making them valuable assets for taxpayers seeking professional assistance. Once a candidate has successfully obtained a PTIN and passed all three parts of the SEE, they can proceed to apply for enrollment to practice before the IRS.
