EAs must agree to adhere to ethical standards, and they must complete 72 hours of continuing education every three years. They must have a Preparer Tax Identification Number (PTIN), have timely filed all their own tax returns, and owe no outstanding tax debts to the IRS. The amount of time you’ll spend studying for the EA exam is of equal importance. However, if you are very familiar with the tax code, you could sufficiently prepare for the exam in a matter of weeks (about 4-7). But if you need further tax law training, your entire EA review could last at least 4 months.
Enrolled agents: Frequently asked questions
CPAs may offer a range of services; some CPAs specialize in tax preparation and planning. This is because being an enrolled agent comes with significant privileges, including full representation rights for all tax matters backed by federal authorization and nationwide acknowledgment. An IRS-authorized Enrolled income summary Agent (EA) can represent taxpayers, offer tax preparation services, and provide tax advice and advocacy. Needless to say, becoming an Enrolled Agent ensures a rewarding career journey within the complex realm of tax laws.
Definition and Example of an Enrolled Agent
In fact, you can schedule and sit for the exam as soon as you obtain a Personal Tax Identification Number (PTIN), even if you are still in college. But now you’ll have to put in some work to maintain your enrolled agent status. In other https://www.bookstime.com/ words, you’ll have to meet the continuing education (CE) requirements. Fortunately, you don’t have to fill out any type of application.
Should I ask about an EA or CPA’s experience or specialty?
The role of an enrolled agent began in 1884 after the Civil War ended. Property, such as horses and farm equipment, were commonly confiscated by the government for use during the war, and citizens needed recourse with settling these claims. If you need any accommodations guaranteed by the Americans with Disability Act (ADA), contact Prometric first to get pre-approved before scheduling your appointment. Not all test centers are equally equipped for all accommodations. Prometric has a testing accommodations request packet that you’ll need to call about. However you decide to register, you must complete your registration (and wait, if you faxed or mailed it) before you can schedule your exam.
You must apply for enrollment within one year of the date you passed the third examination part. After you pass your test but before you begin your Enrolled Agent career, you must also receive a background check. In addition to looking at criminal history, such as the presence of felony convictions, the IRS also considers your tax compliance history when reviewing your candidacy. The IRS does not have education requirements in place, so you don’t need a college degree or formal secondary education to earn your Enrolled Agent credential.
Step 9. Locate the Closest Center and Schedule the EA Exam: Where to Take the Enrolled Agent Exam
If you know that you want to practice tax exclusively, and you’re less interested in public accounting, becoming an Enrolled Agent is a great choice for you. On the surface level alone, the Businesses exam is much more robust than the Individuals exam. The study material alone is around twice the size of the first exam’s materials; my study booklet doubled from around 200 pages of material to around 400 pages. To add to that, at this point in my career, I have completed a grand total of zero Business tax returns.
You can also search the IRS’s online directory of tax return preparers to find both EAs and CPAs who hold professional credentials recognized by the tax agency. To get this enrolled agent designation information, it’s a good idea to ask for an initial consultation where you can learn about an EA or CPA’s fees and other important matters about the services they offer. You might also run across an EA or CPA using a per-form pricing model, which is a type of flat-fee approach.
Sign up for IRS Updates
Additionally, as part of the evaluation of your enrollment application, the IRS will conduct a suitability test. This test will include a review of your personal tax compliance. Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.
- As a member of the NAEA, you can take advantage of exclusive partner discounts, giving you access to essential tools at more affordable rates.
- You will also receive diagnostic information which may indicate areas of weakness in your performance where you may need continuing education.
- To receive the enrolled agent license, you must apply for enrollment within 1 year of passing all 3 exam parts.
- Depending on your tax situation, you may want to work with an Enrolled Agent or a Certified Public Accountant.
- The SEE, also known as the Enrolled Agent exam, is a comprehensive three-part test that tax preparers must pass in order to become an IRS Enrolled Agent.
- With the exception of wedding and engagement rings and small stud earrings, jewelry is prohibited.
- They’re tax professionals who can help you with your business and personal tax issues, similar to certified public accountants (CPAs) and tax attorneys.
- From 1884 through the early 20th century, this statute remained largely unchanged.
- So, if you’re thinking of hiring an EA or CPA, which one will fit your needs the best?
- Understand how to become an Enrolled Agent, and achieve your career goals through EA Exam preparation and continuing education.
Therefore, you will need to make a commitment of time and effort to pass the EA exam, but it is less of a commitment than you’d make to finish other professional exams. For example, the CPA, CIA, and CMA exams can take 1-2 years to pass. Maybe you don’t yet have any tax return experience but are interested in entering the industry. In either case, becoming an enrolled agent (EA) would be advantageous for you. So, I’ll help you find the motivation you need to become an EA by revealing the benefits of the EA designation.