Becoming an Enrolled Agent

The goal was to ensure that agents were of upstanding moral character. Expand your reach – If you are a CPA or Attorney, your ability to practice is limited to states where you hold a license. The enrolled agent designation is a federal authorization that can provide you with the ability to represent clients in other states. Enrolled agent jobs can be found in a variety of organizations from large public accounting firms to small accounting businesses. The opportunities for tax preparers become more varied with enrolled agent status, and candidates will find that career doors open up with the certification.

While taking all 3 parts at once is an option, it’s not the best strategy for passing because it can get overwhelming and may increase your odds of failing an exam part. Therefore, you should simply focus on one exam part at a time instead. As you think about when and how you’ll prepare for the exam, you should also know about the defined testing window. You can only take the EA exam between May 1 and February 28 of the following year. At this point, the benefits of the EA designation may be enough to convince you to move ahead with the designation process. But before you do, you should take the time to assess the pros and cons of the EA designation and compare it to other professional accounting certifications. Then, choose the certification that’s the best fit for your interests and long-term goals.

CPA vs. EA

For example, their old mare may have suddenly transformed into a thoroughbred stud with a high market value. The agents sought to inflate the losses since they were paid on a percentage, or commission, basis. When the legislature saw that there were more horse-related claims than there were actual https://www.bookstime.com/ horses, they passed a law. Once you have taken and passed one exam, you have two years to pass the other two parts. If you decide to become an enrolled agent, you will be making a smart career choice that will open new doors and create potentially unlimited opportunities for yourself.

Failure to timely file or pay taxes can be grounds for denial of enrollment. The EA Exam, officially known as the Special Enrollment Examination , is a three-part exam administered by Prometric on behalf of the Internal Revenue Service. Each part is taken as a separate 100 question EA exam and you will have 3.5 hours to answer all questions for that part. A new EA examination period commences each year on May 1 and continues through February 28 of the following year. The period that begins on May 1, 2012 will include questions based on the 2011 tax year. A passing score on each part of the SEE exam is required before the IRS will admit an enrolled agent to practice.

​​Enrolled Agent Designation

It’s also a good idea to review the Candidate Information Bulletin. Candidates who pass the exam must pay a $67 enrollment fee when they apply to practice before the IRS. To register for the EA license exam, candidates must first create a Prometric account.

Folks that use it, invariably thank us later because it’s so effective & efficient in helping students pass. Generally, how to become an enrolled agent it takes about a month to prepare for each part of the enrolled agent exam (between 3-4 months total).

How to Become an EA

EAs are federally-licensed tax professionals who specialize in tax preparation and have unlimited rights to represent taxpayers before the Internal Revenue Service. By definition, an enrolled agent is a tax professional who has achieved the highest credential the Internal Revenue Service offers. EAs are federally authorized to represent taxpayers before the IRS and, like CPAs and attorneys, have unlimited representation rights. This means EAs can represent any taxpayer, whether they prepare returns for them or not. EAs can also represent any tax matter and appeal to any office of the IRS.

EAs are therefore effectively able to represent persons who are audited by the IRS. EAs are required to show they are competent in tax laws before they can represent a tax payer before the IRS. EAs receive their license from the federal government while Certified Public Accountants and attorneys are usually licensed by the state in which they reside. As income, estate, gift and other sources of tax collections became more complex, the role of the Enrolled Agent increased to include the preparation of the many tax forms that were required. Their original function was representing U.S. citizens seeking reimbursement for having their horses and livestock commandeered by Union forces during the Civil War. After the income tax was instituted in 1913, these agents could represent citizens before the government on tax matters. In 1959 the Special Enrollment Exam was created to qualify representatives before they could represent taxpayers before the IRS.

Step 6. Register for the SEE: How to Apply for the Enrolled Agent Exam

All questions are scored, with the exception of 15 experimental questions that are unscored. The exam is administered through Prometric and is only offered from May 1 to Feb. 28 of the following year. Recommend strategies for the purpose of minimizing liability by researching and evaluating various tax options. If you are considering making a career change or simply exploring career options in the accounting industry, one career choice you may be thinking about is becoming an Enrolled Agent .

The National Association of Enrolled Agents reports that there are more than 50,000 enrolled agents working in the United States as well as abroad. Before delving too deeply into this field as a career option, it’s important to understand EA salaries to determine if this is the right career choice for you. No matter which route you take to the EA designation, your path will include a background check. So, if you know of some issues on your record that may raise a red flag, be proactive and share that information with the IRS. You can do this by listing the details of your issue in a disclosure statement.