What is an Enrolled Agent? National Association of Enrolled Agents

EA candidates must apply for a preparer tax identification number (PTIN), sign up for the certification exam, and pass all parts of the exam. They must also submit IRS applications and pass background checks. Enrolled Agents are the only federally authorized tax practitioners who specialize in taxation. Therefore, enrolled agent salaries are based on factors like experience level, type of experience, job location, etc. The NAEA is the nation’s leading community for tax practitioners – from aspiring enrolled agents to experts with decades of experience. We are advancing the professional tax practice through leadership, management, community, and ethics.

• Yes, the EA exam is considered hard, with varying levels of difficulty between each section.
• (In short, the enrolled agent exam requirements are much easier to meet than the CPA Exam requirements, in comparison.
• However, no matter who you hire, there are certain things to keep in mind.
• The exam is eight hours over two days, and it covers all aspects of federal tax law, including taxation of individuals, corporations, and partnerships.

Next, they must submit to a background check and personal tax audit. If you’re a tax preparer who would like to represent your clients before the IRS, you can benefit from becoming an enrolled agent. You can also use the IRS EA designation to improve your marketability, differentiate yourself from other tax return preparers, how many enrolled agents are there and become more knowledgeable about tax laws. To earn the “EA” designation, a tax professional must pass an IRS test and background check. Enrolled agents focus exclusively on tax issues, including audits, appeals, and collections. They’re said to be “enrolled” because they’re specially licensed by the federal government.

Practice in federal courts

This is to give the exam creators time to update and adjust the exam as needed while new tax laws are going into place. The testing window runs from the beginning of May to the end of February. If you fail a section, please allow 24 hours before scheduling a retake. Those who have worked at the IRS for five years and have passed a background check can become an enrolled agent. However, the most common path to this designation is by taking the Enrolled Agent exam (EA Exam).

• We are advancing the professional tax practice through leadership, management, community, and ethics.
• Or, get the answers to many common EA exam FAQs from our Enrolled Agent Blog.
• The hiring of tax examiners is projected to decline 4% from 2020 to 2030 as the growth of the tax examiner industry is closely tied to changes in federal, state, and local government budgets.
• We recommend sitting for Part 1 or 2 first because some of the content tested in Part 3 builds off of content tested in Parts 1 and 2.
• You will be provided scratch paper and pencils at the test center and you are not allowed to leave the testing room with notes taken during the examination.
• You should be able to pass all three parts within one year, but you have two years to pass if needed.

You must pass all three to become an EA, and each of the three has a slightly different pass rate. Each date range runs from May of one year to February of the following year, as the exam is not offered in March or April. While Part 1’s pass rates are the lowest Enrolled Agent exam pass rates, they are still very encouraging for EA candidates.

Enrolled Exam Scheduling, Fees, and Administration

Therefore, as of May 1, 2023, the Enrolled Agent exams have the following additions from the previous year. If you have a tax question, concern, or general inquiry, you can reach out to our office online or via the phone. Registering is required before you can schedule your exam appointment. Take advantage of our free EA exam resources that will guide you through the process of earning your EA designation.

As for occupational duties, enrolled agents are empowered to represent American taxpayers before the IRS on matters such as collections, tax appeals, audits, and any other tax issues. All score values above passing indicate that a candidate is qualified — not how qualified. You will also receive diagnostic information which may indicate areas of weakness in your performance where you may need continuing education.

What Is an EA?

But, most importantly, you should find an enrolled agent course to help you learn the content of the SEE. Your EA course will also provide you with enrolled agent exam sample questions. Additionally, all our favorite EA review courses include unlimited enrolled agent practice exams. They must complete 72 hours of continuing education courses every three years with a qualified program to stay up-to-date on tax matters.

Being better prepared for the test experience will allow you to perform better the day of your test. The EA exam requirements do not include an education or experience requirement. Rather, to take the SEE exam, you simply must have a Preparer Tax Identification Number (PTIN).

How to pass the enrolled agent exam: Use the best EA course

In answering questions, candidates should not take into account any legislation or court decisions in effect after December 31, 2022. To start, you https://www.bookstime.com/ can download a limited number of practice questions from the IRS. However, the IRS doesn’t give you enough free EA questions to pass the exam.

• Personal items are not allowed in the testing room and must be stored in a locker.
• Our team focuses on providing service, solutions, and success to each taxpayer.
• There is a $206 fee per part paid at the time of appointment scheduling.
• Employees with the enrolled agent job title have their preferences when it comes to working for a company.
• If you’ve not heard of the designation, you may be asking yourself, “what is an EA exactly?
• To provide candidates flexibility in testing because of the global pandemic, the two-year period is extended to three years.

Since video classes can be online or downloadable, they are a very helpful study resource. They are interactive and allow you to pause, rewind, and replay sections of the video as often as necessary. Part 3 of the exam is titled Representation, Practices, and Procedures. The exam duration for this part is also 3.5 hours, with 100 multiple-choice. Enrolled agents at the mid-level with five to ten years work experience earn $50,000 on average.

With thousands of NAEA members across the country, we’ve made it easy to find the tax expert who can help you with any and every question, issue, or challenge you may face. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate. The test can be taken from June 1 through the end of February of the subsequent year. This allows the IRS time to update the test annually to accommodate current tax law.